Essay Logistics and Project Planning - Easyinternetcafe

847 WordsNov 5, 20104 Pages
easyInternetcafe’s Situation easyInternetcafe was launched in 1999 under the umbrella of the easyGroup. The mission of elc was to provide consumers with access to the Internet at the lowest cost. Despite the excellent support and recognition from the public, elc was experiencing adversity of keeping their business profitable after the Internet Investment bubble burst. The original concept of owning many of the large stand-alone cafes with 250-500 PC terminals at each café was not working well. elc undertook a dramatic restructuring of the company by downsizing the cafes. Many of the large, original stand-alone elc stores will be run by franchisees. These franchised stores will become smaller stores which have 20 to 30…show more content…
Building on the success of easyJet and to extend 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 group included easyJet, easyCar, easyCinema, easy.com, easyMoney and easyValue, easyBus, easyPizza, easyCruise, and easyDorm. Low price and no-frill is the key elements of the ‘easy’ brand. Yield Management Model Stelios is an enthusiast 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 resource (such as airline seats or hotel room reservations). Stelios believes that lowering the price will increase the demands of the customers significantly. By locating all the large internet cafes in high traffic areas, elc aimed to capture the maximum revenue by providing internet services with a variety of price points at different points in time (peak hours or off peak hours). The price for Internet access varies based on demand, raising the price in dollar per hour in mid-afternoon, when stores are nearly full. That gives bargain hunters an incentive to visit in the non-peak hours, when price is dropping. The model is well suited for business with high

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