The strategic analysis of EasyJet and Easy Group --the analysis of organisational assets and Growth-share Matrix analysis for the Easy Group

Introduction

The assignment was based on a strategic marketing analysis of Easy Jet and Easy Group. It will be carried out through two exclusive parts.

In the first part, firstly, we are going to give a general overview on easyJet's assets, then mainly concentrate on its critical capability which formed its core competence. Essentially, historical comparison approach was adopted to evaluate the organization's relative strengths and weakness.

The second one is by constructing a Growth-share Matrix for the Easy Group to better understand the balance portfolios of its different Easy companies in it and then the core competence of Easy group will be discussed in detailed.

Part One

1. The overview of easyJet's assets:

1.1 Physical assets

easyJet is based at easyLand, a bright orange building adjacent to the main taxiway at Luton Airport. In an industry where corporate HQs are generally considered to be the ultimate status symbol, it is the very embodiment of the easyJet low-cost ethos.

EasyJet A319 Cabin

Easy Jet take off

Airbus A319 in special livery, the hundredth Airbu...

1.2 Financial assets

easyJet is founded by Stelios Haji-Ioannou and it is now a Public Limited Company.

The main strength of its financial operation s that it got a strong balance sheet which allowed it get enough cash to run the business. (Stelios Haji-Ioannou, 2002)

Figure 1 shows easyJet's revenue and profit chart from 1998 to 2003.

year to end September revenue (£m) profit

(£m)

1998 77.0 5.9

1999 139.8 1.3

2000 263.7 22.1

2001 356.9 40.1

2002 552.0 71.6

2003 932.0 52.0

Figure 1. (go-fly.com, 2004a.)

Figure 2 shows easyJet's financial conditions in 2003.

Company Type Public (London: EZJ)

Fiscal Year-End September

2003 Sales (mil.) $1,552.7

1-Year Sales Growth 80.2%

2003 Net Income (mil.) $54.0

1-Year Net Income Growth (29.4%)

2002 Employees 2,045

1-Year Employee Growth 27.9%

Figure2. (Hoovers, 2004)

1.3 Operations assets

easyJet is now offering143...