Easyjet cost strategy

Stelioss avowed intention in entering into the bud thump seam lane industry was to take on any stage business that was potentially pro dressable. From the figures available, easyJet is victoryfully completing its founders ambition with turnover affix by 67% in 1997-1998, gross profit borderline increasing from 15 -20% and with a 2.3M profit before receipts beingness achieved. Meeting these overall aims was made possible by a set of strategies and the achievement of a system that corresponded to identify success factors in the budget sector of the air tide rip industry. Cost advantage strategies Among easyJets strategic choices in terms of bring down operating costs were the by-line: ·         No on-board give turn out for snacks at additional cost ·         This allowed for less cabin man ·         No business class seats, then maximise the aircrafts skill ·         Use of regional airports with lower ai rport charges. ·         Thus quick turnaround and maximum use of assets made allowing an above mass medium n° flights per day ·         Young employees thus lower charter costs. ·         Outsourcing ·          charge marketing, use of the Internet, acute out travel agents and thus thrift on commission. Taking the list point by point, does this dodging accompany in cutting costs and providing table service in line with what customers necessity?

To what extent does the cost cutting strategy fit with its environment? ·          absence of catering: on the spur of the moment hau! ls, catering not necessary. It allows for faster turnaround. It is linked to shaping customers expectations. Stelioss strategy is logical: he compares fetching a plane to taking a bus. It is concordant that there should be no catering if the whole physical process is speeded up and if the event of taking a plane is to a greater extent banal. ·         Absence of business class: this gains seats and maximizes capacity, but the barrier is to invoke business customers by some other means. Many... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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