Tuesday, May 21, 2019
Value Chain Analysis ******** Diagram ********* The above mock up demonstrates the principal element of Value Chain Analysis for an organization such as Easyjet. The integration of the above elements ultimately delivers great margin potential and so the ideal luxuriously profitability status. I will provide a detailed analysis of this model to highlight the core capabilities of Easyjet Infrastructure Main provide based in Luton. Provides excellent communication with motorways, railway lines and bus access Low overheads Paperless office No ticketing system with posted ticket Simple dispersion channel management (through the Internet or call centers) Low airport costs (minimal time of aircraft on the ground), thus achieving economies of scale Financial resource investing initially supported by Haji-loannou HR Management Haji-loannou, high profile entrepreneur (shipping tycoon background), Hands-on-approach from Haji-loannou looking for opportunities to diversify and exp and, Innovative merchandise terms for marketing communications to date. Technology Development Booking through the Internet (higher margins, with a more manageable, simplistic system) Strong reputation for being an air hose where books ar do via the phone or Internet. Procurement Easy purchase system in place for flight bookings Negotiated low cost airport fees Simple staff uniforms No tedious ticketing system in place Below you will find a commentary on how these key elements are also integrated into the Easyjet course and further, how the strengths can be used to develop and extend the Easyjet brand.Inbound Logistics Excellent communication system in place at airports and easy flight booking policy/payment methods convey an image of convenience a key benefit to consumers Operations and Outbound Logistics Good marketing strategy we have the trump approach Partnerships and promotional tie-ins with the mass media High profile PR strategy (for example the PR stunt against Robert Ayling, Chief Executive of British Airways and its budget airline GO gains cheap PR coverage) Fine targeting of attractive segments emerging e. . utilization of casual uniforms. However, safety is always a critical concern and is up to rack up with the standards of other airlines. Service Convenience and simplicity are of integral importance Affordable, frequent, reliable, safe slots are offered to an increasing number of new destinations No frills and/or complications are associated with the travel experience. Conclusion Clearly Easyjet has some attractive core capabilities that have been established in the marketplace and are perceived as ultimately good to the consumer.The Value Chain Analysis highlights those elements of the business that can be integrated or fine-tuned (through for example just in time systems, quality standards and relationship marketing) in order to achieve the overall objectives of high margins, profitability and market share. Perceived superior services or products, market knowledge, industry contacts, legal advantages (patents, copyrights) perceived high value brands, low overheads, economies of scale and an offensive marketing approach are some of the key factors / elements for sustaining a competitive advantage and indeed promoting the Easyjet family of companies.