EasyJet A No Frills Airline Assignment Example | Topics and Well Written Essays - 2000 words - 1

EasyJet A No Frills Airline - Assignment Example The disadvantages of the cost leadership strategy, as employed by EasyJet, include negative perceptions of quality, poor customer service, and unsustainable discounting systems. It is recommended that EasyJet adopt highly flexible strategic decisions, develop a more aggressive and direct strategy, and reevaluate its wage structure. Finally, it will provide a comprehensive conclusion, and make the necessary recommendations regarding the subject. This paper provides a comprehensive perspective of EasyJet as a company, including the cost leadership approach, which is the generic strategy favoured by the company. EasyJet is a leading budget airline that operates mainly in Britain and Southern Europe. The company’s headquarters are in Luton, Britain. According to Anderson (2014:41), as at December 2014, EasyJet employed almost 9,000 people and flew to over 600 destinations in 30 countries. In the financial year ended September 2014, the company posted revenues of  £4,527 million (Anderson, 2014:41). This represents a 6.3% growth in the 2013 financial year. Pre-tax profit, on the other hand, was  £581 million, representing a 21.5% increase in 2013. EasyJet’s 2014 financial results were positive to say the least, and reflected the strategic decisions made by the company to maximise efficiency and expand its services to more countries (Chen, 2013:34). The strategic plan implemented in 2013 was necessitated by changes in the global and European airline industries that complicated operating conditions for most airlines. EasyJet, however, has been able to not only adapt but also t o perform in spite of the conditions. As of December 2014, the company’s founder, Sir Stelios Haji-Ioannou, is the largest shareholder (Doganis, 2013:38). Apart from basic travel, EasyJet offers a range of auxiliary services. For example, it collaborates with Gate Gourmet for its in-flight products and services, Europcar, for car hire services, and booking.com that