5A. EasyJet has been innovative in both its operations and its service offering. The company has found unique ways to drive revenue from passengers beyond the basic seat offerings. They have utilized the Internet and other information technology such as text messaging as a service and marketing tool to a greater extent than many of their competitors (Caswell, 2007). They have also been innovative in their choice of strategic alliances, such as their deal with Business Travel International (BTN, 2005). Furthermore, many of their techniques and structures for cost management show their innovative approach on the operations side. The design of their route architecture, their methods for increasing aircraft turnaround time and other efficiency strategies are innovative (Messinger, 2006).
5B. These services are moderately innovative. EasyJet's business model is similar to other low-cost airlines, but they have implemented their own improvements. Despite being modeled after other companies, EasyJet has consistently worked to build upon earlier innovations and existing features. Thus, EasyJet is an innovative company, but their innovations are focused more on improving or enhancing existing product/service offerings rather than the development of entirely new ones.
5C. Innovation is moderately important for the long-term growth and survival. EasyJet's innovations are focused either on cost reduction or on service differentiation. Cost reduction is the key driver in EasyJet's business, so the ability to innovate new techniques will enhance their long-term growth. In terms of differentiation, this is less important at the current stage of EasyJet's operations. They have established both size and brand recognition, so are relatively insulated against the threat of new competitors. Thus, differentiation is not as important to the future growth...
This came as result of the firm's cost-cutting efforts after it lost $85 million in 2008 amid the start of the downturn and skyrocketing fuel prices. The company had also turned a profit in 2007 (MSN Moneycentral, 2010). Clearly, the company has been able to adapt to its circumstances and meet its financial objectives. Revenues, however, shrunk in 2009, no doubt as the result of cutting routes in order
7% The company tangible assets consist of the plant, property, equipment such as the fleet of aircrafts that the company uses for its business operations. Other tangible assets include various building the company is using for business operations. The company tangible assets also include company computers, brand names and various computer software than the company is using to improve its business operations. However, the company intangible assets declined by 1.2% between
2.0 Strategic Situation Analysis In order to understand the nature of aircraft manufacture at Boeing, it is important to have a clear vision of how outsourcing plays into the manufacture of aircraft. Let us use the example of Boeing's Dreamliner. The following illustration explains how outsourcing plays a key role in Boeing's business strategy. These represent TIER 1 suppliers. Figure 1. Source http://seekingalpha.com/article/17727-boeing-s-outsourcing-for-the-787-dreamliner From here, the parts go to the plant in Everett and
The company's promotional literature emphasizes the synergistic effects of this corporate structure: "IAG combines the two leading airlines in the UK and Spain, enabling them to enhance their presence in the aviation market while retaining their individual brands and current operations. The airlines' customers benefit from a larger combined network for both passengers and cargo and a greater ability to invest in new products and services through improved financial
AirTran Continue Successful to Be Successful in This Highly Competitive Industry? The objective of this study is to answer the question of whether AirTran will continue to be successful in this highly competitive industry. According to Rouse (n.d.) in her work on AirTran Holdings, Inc., the ability of AirTran Airways to grow in the worst environment for the airlines in a long time and stated to be an unexpected turnaround. The
Thus, the company is not attempting to either "win" or "lose" with its transactions. Thus, either may occur over any given period. An example of a fuel hedging "loss" occurred in late 2008 and into 2009. During this period of high volatility, fuel prices shot up as high as $140 per barrel in mid-2008, only to quickly crash down to $40. This volatility is a tremendously challenging environment. The
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