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Reference no. IMD-3-0873
Prize winner
Published by:
IMD (2000)
22 pages
Data source:
Field research
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Stelios Haji-Ioannou, the 32-year-old Chief Executive Officer and founder of easyJet airlines, achieved profitability for the first time in 1999, almost 4 years after launching his London-based low cost carrier. The concept behind easyJet was 'to offer low cost airline service to the masses', and the airline accomplished this by adopting an efficiency-driven operating model, creating brand awareness, and maintaining high levels of customer satisfaction. A key issue in the case is whether the airline will continue to grow and survive in the highly competitive low cost segment of the market. In 2000, Stelios was anxious to try his hand at launching other businesses, so he started a chain of Internet cafes. Some questioned whether Stelios would be able to successfully transfer his low cost business model to Internet cafes. Undeterred, Stelios moved ahead with his plan to create easyEverything, with the belief that he could make a profit by encouraging customers to surf the Internet, send e-mail and shop on-line. Instructors should note that 'easyJet' is the first case in a series that includes 'easyEverything: The Internet Shop' and 'www.easyrentacar. com'.

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Marketing strategy; Industry analysis; Service management
1,000 employees, USD125 million turnover
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