What does the easyGroup example say about the transferability of competitive advantages?

EasyGroup has never hesitated to demonstrate their benefits and this is reflected in all of the company's businesses.

One of the most striking examples transferability of competitive advantages is a British low-cost airline, easyJet. The company's strategy was based on three key components: no-frills concept, low-cost focus, and yield management (vary prices based on demand levels).

easyJet operated from major airports and provided point-to-point services with short haul destinations and rapid turnaround times. Prices were closely linked to demand and how far in advance tickets were booked (the earlier passenger booked the cheaper fare would be). Unlike competitors, airline has no travel agents, reservations were made by phone or via the Internet, and it has more flexible deployment of planes. Prices were quoted one-way to allow customers to flexibility. In order to cut the costs there was no inflight meal services and business-class seating. These actions let to maximize a load capacity and guaranteed a high aircraft utilization.

EasyJet positioning attracted an audience of journalists and provides a media activity. Company’s management are not required to invest a lot in marketing and advertising, laying the groundwork in advance. A strong stable union presented management team.

Yield management capabilities served so well in running an airline could be re-deployed in UK operator easyCinema. Management used the same pricing strategy. There was no advertising and visitors could bring their own food and drink. easyInternetcafe was built on the same concept: internet, brand yield and management techniques were the key business fundamentals.

At the same time, easyGroup demonstrated a special attention to hardware as its competitive advantage. This is a point in which company does not skimp. EasyJet applied the best Boeing planes in its work particularly. Group of companies has always used the latest technology innovations to automate a process of serve the customers. easyCar user-friendly foolproff software made it possible to avoid a complexity of managing operations.

easyGroup has relied on the employees opinion in its decision-making being an «information hungry».