The Easy group began in November 1995, when Stelios Haji-Ioannou (the serial entrepreneur as he likes to call himself) decided to create (he is the son of a Greek shipping magnate) an airline based on low prices through massive reductions in costs (small airports, hotlines, e-tickets, no peripheral services etc).
The firm thus chose to focus on its core competency- one for which customers are attracted to the company- to reduce costs and offer products at fragmented prices. Today, faithful to the principles that have been successful so far, Stelios penetrates any market where he can apply his winning strategy with success. The objective is to reduce the cost structure by 50% compared to other companies.
The strategy is clearly identifiable, almost caricatured, and relies on creating competitive advantage by cost. It is also a disruptive strategy, Stelios calls into question the established rules and invents new ones with each new "enterprise". This was also true of easyJet, which introduced a new way of looking at a plane trip, and created a demand among people who hitherto traveled by train.
Rather than match the competitors, the company deploys part of its resources to change the environment (in the case of easyCruise, it is the perception of the customer when the utility of the cruise product is amended). Even the most spectacular and successful strategies of rupture must still be founded on objective arguments.
The question we can ask is: can we reproduce a model based on a single strategy for all industries of tourism? This is in view of the launch of easyCruise, a company that offers cruises at discount prices that we will answer that question. This industry, in fact, seems impervious to this kind of approach in the domain of luxury, where the service is valued only if it allows the consumer to distinguish themselves.
Also, what are the opportunities for easyGroup to launch in the market for Mediterranean cruises? Initially we will identify the external and internal issues and then make recommendations, and formulate an operational strategy.
The corporate identity is based on a pattern of behavior characterized by the concept of "low-cost, no frills." This sentence sounds like the motto of easyGroup and affects policy choices.
But behind this concept lies a focus mainly concentrated on one leader, namely, the founding director Stelios Haji-Ionannou. Stelios and his group are closely related as to be fully assimilated. Anyone visiting the websites of the 15 activities of the group can meet 13 times out of 15 the phrase "brought to you by Stelios and easygroup.com."
On the other hand, numerous drawings and photos adorn the Cypriot sites and mark its omnipresence. It also begs the question of whether "Stelios" does not become a brand comparable to the concept of "easy" business and the color orange but this idea lies more in the domain of marketing orientation.
Profitability and growth are closely linked. Indeed the group's growth is made possible by the profitability of certain activities. The margin generated in sectors such as aviation (easyJet) can be considered for development of other companies in other sectors to gradually "paint the world orange" (Mission statement).
Tags: Stelios Haji-Ionannou, corporate identity of easyCruise, low cost companies
[...] We will see the practical application of these skills in the action plan which will be developed later. The strategy formulation 1. A diversification strategy: the launch of easyCruise The strategy developed by easyGroup in all its activities is based on a perceived value which is lower than competitors and a lower price than competitors. In fact, the group offers services with less added value than the competition at lower prices. This type of strategy is a strategy of treatment. It would therefore be appropriate to consider a strategy similar to the cruise market in the Mediterranean. [...]
[...] Tropez, Nice, Cannes, Monaco or Portofino may strongly contrast with the simplicity of the service. Customers transported by easyCruise will probably not have a high enough purchasing power for such destinations. In addition, these prestigious resorts do not welcome the arrival of this type of clientele. Another unknown element for the group is the seasonality of the business. Reduced duration of the season implies an imperative necessity to better control the reservations, so that the occupancy rate is always 100%. [...]
[...] Conclusion Creating easyCruise seems a very complex challenge for the group. While positioning on a segment already well controlled by the Group through the previous success and offering an attractive alternative and innovative offering in the cruise industry, Easy starts in a very difficult market to identify an outside company or level of commitment must be to create maximum success. On the other hand, the consumer behavior in the cruise seems to be more on the order of idleness and relaxation or small pleasures synonymous with comfort rather than simply moving from one port to another. [...]
[...] One of the main conditions of success will be the rate of booking of cabins that will be 100% to ensure the most revenue possible.The use of yield management already mastered by the "Travel" SBU will accomplish this objective, which plays a role in the cruise market. Here we will find the nature of the diversification of the group to better understand what the key to future success will be. Diversification of easyGroup in cruises is definitely offensive. The group wants to take advantage of its cost control to conquer new positions. This is to enhance the resources of the company, and part of the process group is considering its own powers to reflect its success in other markets. [...]
[...] Functions used or applications? They are different from what the product of the group has been to date. However, the activities of hotel and airline will facilitate access to the cruise market. In fact, the cabins will be booked to interest on the same basis as the hotel and the boat can be used as means of transport but with a dimension of accreditation and leisure. The cruise is neither pure transport, or pure hospitality but it shares some elements in common with these activities. [...]
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