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Extending the "easy" Business Model: What Should easyGroup Do Next?

Published 06 Jan 2003
Reference 5119
Topic Strategy
Industry Entertainment
Region Europe
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Prizes & Awards

2005 ecch Best-selling Case in Strategy and General Management

2004 ecch Best-selling Case in Strategy and General Management

Summary

easyGroup is contemplating its entry into the cinema exhibition business in the UK through the launch of a no-frills cinema. The company believes that it can redeploy the capabilities, such as yield management, that led to the success of easyJet, its low cost airline business, into this new venture. The case examines the market for cinema in the UK, as well as the evolution of easyGroup's portfolio of companies, with a view to assessing the attractiveness of the company's planned launch of easyCinema.

Teaching objectives

The objective of the case is to highlight the challenges faced by a company in developing a coherent growth strategy and to assess the extent to which an organization's capabilities can be redeployed into new business ventures. This case aims to develop a discussion on the advantages and limits of a related diversification strategy.

Keywords
  • Growth strategy
  • Diversification
  • Related diversification
  • Entrepreneurship. AR2003
  • AR0203
  • RD0503