Sunday, February 24, 2019
Logistics and Project Planning Essay
The mission of elc was to provide consumers with access to the cyberspace at the concluding cost. Despite the excellent support and recognition from the public, elc was experiencing adversity of keeping their furrow profitable after the Internet Investment bubble burst. The original theory of owning many of the large stand-al unrivaled coffeehouses with 250-500 PC terminals at each coffee shop was not working well. elc undertook a dramatic restructuring of the participation by downsizing the cafes.Many of the large, original stand-alone elc stores go forth be run by franchisees. These franchised stores will become smaller stores which yield 20 to 30 PCs terminals at each cafe and with no staff required except for prescribed maintenance. Less involvement with store operations allows elc to concentrate on activities of their summation competence and outsource all the non-core activities. Their core competence was to continue create their easy brand and applying the yield solicitude vex to the Internet cafe business. Their business goal was to open 4 new franchises per week e actuallywhere the next 3 years.In enounce to achieve the goal of ontogeny their franchised Internet cafes business, an efficient, flexible and cost-effective logistics system is what they need for the provision of equipment to the franchisee. Since logistics is one of the non-core activities that is perceived as a bottleneck for scalability, the present logistics system of elc will be reviewed and findings of whether to outsource the logistics system will be presented to the management team. emphasise of easyGroup Stelios Haji-loannou, the founder of easyGroup, is the renowned Greek entrepreneur who utilized his family money to hurl a serial of ventures.His first venture, Stelmar Tankers was found in 1992. The company very soon went into the public sector and was listed on New York Stock Exchange. In 1995, he found easyJet. easyJet was a no-frills, low cost airline company and later grew to become the largest no-frill airline in Europe and was listed on the capital of the United Kingdom stock exchange in 2000. Building on the success of easyJet and to result the easy brand further, he formed the holding company easyGroup in 1998. easyInternetcafe was his first venture under the umbrella of the easyGroup.Other companies in the crowd included easyJet, easyCar, easyCinema, easy. com, easyMoney and easyValue, easyBus, easyPizza, easyCruise, and easyDorm. Low scathe and no-frill is the key elements of the easy brand. Yield charge Model Stelios is an en therefromiast of Yield Management Model and he applies the model to his business. According to Wikipedia, yield management is the process of understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable pick (such as airline seats or hotel room reservations).Stelios believes that lowering the price will increase the demands of the nodes s ignificantly. By locating all the large cyberspace cafes in laid-back traffic areas, elc aimed to capture the maximum revenue by providing meshwork services with a variety of price points at varied points in time (peak hours or off peak hours). The price for Internet access varies based on demand, raising the price in dollar bill per hour in mid-afternoon, when stores are nearly full. That gives bargain hunters an incentive to trim in the non-peak hours, when price is dropping.The model is well suited for business with high fixed cost and perishable supply. The large numbers of computer equipments privileged the Internet cafes are capital intensive for elc. The reverse seats wrong the cafe in a certain time period cannot beat any revenue and thus can be said to have perished. elc uses one of their capital proprietary products, CVM, to monitor how seats are booked and react accordingly, for example by adjusting the price to offer discounts when it appears that large measu ring stick of seats are remaining empty.However, this model is not working for elc as it does for airline and hotel industries. The customers willingness to pay for using the internet access at theses internet cafe is impulsive and their demands are not easy to predict. The yield management model works well for airlines and hotels mainly because their customers usually plan in front of time on their journey. Therefore, airlines and hotels are more likely to predict their customer demands and adjust the prices accordingly. They still have time to attract customers by crack last minute deals.But for internet cafes, customers do not murder reservation for their usage of Internet in advance. Customer demands are thus very hard to predict. Even though the CVM can adjust the determine based on the vacancy of the cafe, it is difficult to attract enough customers in a short period of time to fill up the empty usage of the internet access. Since Internet was still a new engineering scie nce at that time, Internet access was not yet considered to be an all important(p) product. Customers were likely to learn when to visit the cafes so that they can pay little compared to other time period.
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