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

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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...