Strategic Initiatives Required of easyJet plc to maintain its Dominant Dissertation

Strategic Initiatives Required of easyJet plc to maintain its Dominant Market Share in the United Kingdom - Dissertation Example The venture failed, being squeezed out by the established airlines, but the concept remained and was revived in the 1980s, when deregulation in the airline industry in the U.S.A. witnessed Southwest airlines using this strategy to gain dominance in the domestic market. Liberalization in the airline market by the European Commission resulted in this concept reviving in the European sector in the 1990s. Consequently, â€Å"no frills airlines† sprung up by the mid-1990s in the United Kingdom and began dominating the European Market. easyJet came into being in 1995 as the brainchild of the Cypriot businessman Stelios Haji Ioannou, having a background steeped in the shipping industry. The early days of easyJet did not witness much success in proving to be a profitable venture. However, between the period 1998 to 2002 easyJet demonstrated the hunger and drive for larger market share and profitability through an impressive record of raising its 77 million pound turnover and 5.9 milli on pound profitability to 582 million pound turnover and 71.6 million pound profitability over this period. Strategic initiatives in the form of mergers and acquisitions of competitors and brand extension resulted in easyJet rising to a dominant market position in the United Kingdom market (Homer & Swarbrooke, 2004). ... Such a study would add to the body of knowledge of strategic management, providing insight into sustaining competitive advantage. 3. Literature Review easyJet has its headquarters in Luton England, providing direct employment to 7,300 people that include 1,900 pilots and 4,300 cabin crew. It has revolutionized the manner in which people in Europe travel for business or for pleasure. It has led the way in utilizing the Internet as means of providing convenience in ticketing and quick dissemination of information. It operates on more than 540 routes in Europe with its 196 aircraft. In 2010 it carried fifty million passengers. It has strong market positions in key markets in Europe. It holds the dominant position at Gatwick, Milan and Geneva and is a strong contender in Paris (easyJet plc, 2011). The business and financial highlights of easyJet for the year 2010 shows a total revenue of 2,973.1 million pounds, profit before tax of 154.0 million pounds, return on equity of 8.6% and retur n on capital of 8.8%. easyJet has demonstrated continuing growth, with passenger numbers up by 7.9% and total revenue per seat up by 5.1% (easyJet plc, 2011). With the passing of each year easyJet’s market position in the European short haul aviation sector has only grown stronger. In the first half of 2010 it increased its market share from 6.5% to 7.6% (easyJet plc, 2010). easyJet has demonstrated how to use the resource based model to attain competitive edge and success in the business world. In its initial days it imitated this business model used by Southwest Airlines of U.S.A. which was characterized by use of one type of aircraft, the Boeing 737; catering to short haul needs; no