1.

List all the ways in which EasyJet achieves low-cost operations:

• Using Internet for ticket sales, reduced distribution costs.
• Implementation of a variable pricing system through online booking.
• Ticketless travel, reducing the cost of issuing, distributing, and processing
tickets.
• No free on-board catering.
• Efficient use of airports, preferring less crowded and secondary airports with
lower landing charges and faster turnarounds.
• Paperless operations, undertaking all management and administration tasks
entirely on IT systems.
2. Evaluate EasyJet’s operations strategy in relation to competitive advantage.
EasyJet focus on cost leadership that provide low-cost flights to customers using
various cost saving tools. It is providing competitive prices along with maintaining
its profitability. This strategy helped it to capture market share from traditional
airlines and gradually become one of the profitable airlines in Europe. So mainly
this ability of EasyJet helped customer to get cost friendly tickets attracting price
conscious customers and gained overall competitive advantage in airline market.
3. To what extent does EasyJet’s concentration on low costs limit its ability to
perform well against the other operations performance objectives?
While EasyJet's focus on low costs has helped it achieve success in terms of
profitability and market share, it may limit its ability in other operations
performance objectives such as quality, flexibility, and innovation. For example:
• Quality: The low-cost operations may result in trade-offs in service quality,
such as limited in-flight amenities and less flexibility in booking options.
• Flexibility: The cost-saving measures may reduce flexibility in responding to
changing customer preferences or market conditions.
• Innovation: A focus on cost reduction may hinder investment in innovation
and new technologies that could enhance the customer experience or
improve operational efficiency.
4. What are the risks associated with EasyJet’s strategy?
Some potential risks associated with EasyJet's low-cost strategy include:
• Competition: The budget airline industry is highly competitive, and
competitors may undercut prices or offer similar cost-saving measures.
• Economic factors: EasyJet's profitability is sensitive to economic conditions,
such as changes in fuel prices, exchange rates, or consumer spending
patterns, which could impact its ability to maintain low costs and
profitability.
• Regulatory challenges: Changes in aviation regulations or government
policies could affect EasyJet's operations and cost structure, requiring
adjustments to its strategy and increasing costs.