Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 23.05.2023
Revision date: 6-Jun-2023
Length: 24 pages
Data source: Field research
Notes: To maximise their effectiveness, colour items should be printed in colour.
Abstract
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'.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2000.Geographical setting
Region:
Europe
Featured company
easyJet
Employees:
501-1000
Turnover:
USD 125 million
Industry:
Airline
Featured protagonist
- Stelios Haji-Ioannou (male), CEO
About
Abstract
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'.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2000.Geographical setting
Region:
Europe
Featured company
easyJet
Employees:
501-1000
Turnover:
USD 125 million
Industry:
Airline
Featured protagonist
- Stelios Haji-Ioannou (male), CEO