A not so Easy way to success
By Nick Easen for CNN
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If there is a failure or two for the Easy brand, Stelios remains unfazed.
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(CNN) -- Flamboyant businessman Stelios Haji-Ioannou hit the bull's-eye with EasyJet.
Founded eight years ago with a $9 million loan from his Greek shipping tycoon father, the airline is now one of the major players in European aviation.
Declaring an end to "rip-off Britain," Stelios -- as he is universally known -- has moved into many sectors with his bright orange Easy brand.
"I look for inefficient lazy competitors," he told CNN.
"The more frills they have the more interested I am, because I can take costs out and offer consumers a quality product at a low price."
To date his ventures include car rental, credit cards, Internet cafes, a Web-based price comparison service and the latest venture -- cinema.
All of the Easy brand spinoffs depend on a low-cost format, with stripped-down service and an Internet reservation system.
According to analysts, the privately held EasyGroup has cleverly positioned itself as the consumer champion, assailing established businesses on behalf of consumers.
"Stelios says he is excited and fascinated by the idea of price elasticity of demand," says Professor Ian Turner of Henley Management College, England.
"Wherever you can induce consumers to change their buying habits when influenced by price, he is interested in the marketplace."
EasyJet easily filled a void in the European aviation sector by moving beyond stifling regulations and high-costs.
But in other sectors, the Easy business model has been less clear.
EasyInternet Café lost over $150 million after it expanded too quickly and EasyCar laid off more than half the UK wokforce after it failed to manage its liabilities.
"It's one thing to have a concept it is another to execute it well, we failed on the execution a bit," says Nick Manoudakis, chief operating officer of Easy Group.
The latest testing ground for the Easy brand are cinemas. In the UK competitors sell seats for at least $7, whereas a midweek matinee costs a tenth of the price in EasyCinema.
Analysts say the company has had no control over the product, and distributors have withheld big films on their first run.
If the company fails to win a change of heart from the distributors, then EasyCinema may be forced to close.
"Cinema is different from a low-cost flight -- you go to the cinema for an experience," says Professor Chris Voss from the London School of Business.
"By applying a no frills concept to the cinema, Stelios has taken away the experience."
Yet the company continues to plan, a bus service, hotels and cruise-ship holidays are all in the pipeline and each will be Easy branded.
But if there is a failure or two down the line, Stelios remains unfazed.
"I do not think the consumers would refuse to deal with EasyJet or EasyCruise when it starts, because EasyCinema closed down," he said.
"Provided it closed down in an orderly fashion. I think people will say OK, the guy tried, we enjoyed it while it was here, we saw some movies for cheap and now it has gone."
-- CNN's Andrew Carey contributed to this report
