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

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.

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.