Easyjet's Value Chain Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Apply the value chain to a real world company using the example of Easyjet.
- Understand how to use Easyjet’s value chain framework to examine the sources of competitive advantage for Easyjet.
- Understand which value chain activities have helped Easyjet become one of the biggest low-cost leaders in the airline industry. While Easyjet’s value proposition of low prices isn’t unique, the company’s execution of particular activities including inbound and outbound logistics is comparable to none. You will discover what these are and much more…
Using a Porters five forces framework, analyse EasyJet's value chain to understand the sources of its competitiveness.
- See also, Easy Swot Analysis 2018
- See also, Easyjet Pestel Analysis 2018
- See also, Porters five forces Analysis 2018
- See also, Easyjet Vrio Analysis 2018
1.0 INTRODUCTION
In March 1995, businessman Stelios Haji-Loannou founded Easy Jet airlines. The aircraft used during the first year of the company’s operation was leased by British Airways. In 1996, the company bought the first of its own planes (Dortmund-airport, 2020). Over the years, the airline has expanded its operations in Europe.
Using Michael Porter’s value chain framework, this report examines Easyjet's
A value chain refers to a set of activities within and around an organization, which help an organization create or produce a product or service (Johnson et al 2008). The value chain categorizes organizational activities into either primary activities or support activities. Firms put together value adding primary and support activities, which help a firm to transform inputs into outputs in an efficient manner so as to create competitive advantages. For any firm to have a successful broad strategy that delivers sustained competitive advantage, its value chain must successfully support its strategy by adding value to its products and services (Johnson et al 2008).
When applied concertedly, a value chain can help firms identify where value is currently added in the system and where there is potential to create further value in the future by reconfiguring and improving coordination of activities.