Case Study
BERHMANI – ELMAALEM – GABREAU – GRANGIER – KHEMISS - MONTFORT
Case Study
The business of Airline Company
EasyJet Airline Company Limited
Founded in 1995, Luton (UK) : 12 years of amazing achievments
114 destinations Fleet size 170
Strong Culture : OrangeSafety - Our number one priority, no compromisesTeamwork - We'll get there faster togetherPioneering - Breaking the mouldto find new ways and new opportunitiesPassionate - We're ambitious to be the best we can beIntegrity - We mean what we say and we do it!
Presentation of the company
Upright devlopment : Hotels Booking etc..
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Value Chain in Airline Companies
In BoundLogistics
OperationsOut-BoundLogistics
Marketing Service
Procurement
Organisational infrastructure
IT + IS
HR
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LowCost
Majors
ChartersNiche
Players
ManyDestinations
Higher QualityLower Quality
¤ Concentration¤ 2 dominant groups¤ Cost-killing
= lowest price + safest travel
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Competitive forces
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Operational Difficulties
- Maximize the rate of occuped seats
- Maximize the price of sold seats
- High cost of offline booking (call centers)
- Merger with Go will increase the volume oof transactions
- Being ticketless (customers, security, process)
- High competition with other competitors (Ryanair)
- Some problems in the booking process date, the flight doesn ›t correspond always at the choice of the customer.
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Operational Difficulties
Before : - There was only a customer service via call center, a phone number to book
flights.- Easyland callcenter was overwhelmed before the website birth- Having only a manned callcenter doesn’t suit to the strategy of low-cost flights.- Website with just some informations about the company
After : - Automated service via on-line trace and track functionality - Thanks to the website, Easy Jet has done the transition:
upstart airline à Europe’s leading low-cost career- First airline company to provide only Internet-promotions
- Bugs during the bookings è necessity to improve the XML or HTML languages? If it’s a problem from the server, Easyjet can’t deal with it.
Cancelled flights è unsatisfied customers (ex: Easyjet doesn’t reimburse unless it is summonsed.)
“C'est avec regret que nous ne pouvons répondre favorablement à votre demande de compensation. En effet, easyJet est une compagnie Aérienne Low-cost et c'est pour cette raison que nous limitons nos dépenses liées aux retards et annulations de nos vols. »
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Goals of the Project
- Increase sales.- Cost lower : reduce call centers- Develop the Web site of easyjet.com.- Offer real time promotions.- Take advantage of internet to change the business model.- To offer customers a reasonable choice of flights- Be more competitive on the market
- Simplicity : no heavy design - No concerns with « stickyness »- Fast transaction execution- Security of transactions- Integration of GO web site
Ab
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Succes of IS initiatives
90% of their sales are generated from the Internet
Reduction of costs =>The strategy of the company allowed the firm to have a cost structure, 50% lower than those of its competitors.
Sell online is cheaper than through the call center
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Succes of IS initiatives
Exemples
Clear
Creative
Easy to Use
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Succes of IS initiatives
Exemples
Booking Box
Check in online
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Succes of IS initiatives
Exemples
Meets customers needs
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Potential problems
Evolution of the business secteur
- The cost higher and higher because of fuel(sometimes companies loose less money by canceling flight) - The concentration of the concurrence (low cost, charters, majors and niche players) - The crise: lower purchasing power- New habit of consumption ( sustain developpement)- Difficulties for the companies in being profitable
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Potential Problems
Scaleability : Very important : two significant European airlines (merger
with Go) increase the volume of transactionSite maintenance : expansive
Intranet system can be busy.
Microsoft ability to keep up : XML can be costly to the firm.
Trivialization of the process : other companies have chosen the samekind of system.
of the IS system
Conclusions
With its new strategy of opening its doors to e-commerce and create a website, EasyJet has known a great success.
However, some problems are related. EasyJet is still working on itand is trying to improve it...
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