Operations Management Strategy at Easyjet

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Competition is the name of the game when it comes to capitalism which is the main sociopolitical system in the world. Through competition among continents, countries, industries, and companies the resources are effectively distributed and efficiency is maximized. This maximization of efficiency is probably the most critical element in the field of "operations management". Operations management has become a science and is blended with the other functions of a business like marketing and finance. A very competitive industry where the management of operations makes or breaks a business is the airline industry and especially the low-cost part of it. In the low-cost airline industry the service provided has been almost commoditized and the companies are trying very hard to be profitable while being competitive, in order to please their stakeholders like investors and customers. A well known low-cost airline is Easyjet which operates in several European countries and has been founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995.

Easyjet's goal is to be the leading low-cost airline in Europe while providing exceptional value to its passengers. This is a difficult goal but the company uses various operations management strategies to accomplish it. These strategies are going to be analyzed in order to understand the positive and negative aspects of each one and also will be contrasted to what the direct competitors do similarly or differently. When it comes to low cost we have identified eight different strategies being used by Easyjet that help lower expenses. These strategies contain use of the Internet to reduce distribution costs, effort to maximize the utilization of the substantial assets like aircraft
, ticketless travel, not offering a free lunch on board, efficient use of airports, paperless operations, economies of scale, and few management layers. The quality and value provided to the passengers is being accomplished by strategies like having satisfied employees, the use of the Internet for convenience, centrally located airports, and tight flight schedules.

Legendary investor and businessperson Warren Buffett has said: "Whenever I read about some company undertaking a cost-cutting program, I know it's not a company that really knows what costs are all about. Spurts don't work in this area. The really good manager does not wake up in the morning and say, ‘This is the day I'm going to cut costs,' any more than he wakes up and decides to practice breathing." His words are a great introduction to start analyzing Easyjet's cost-cutting efforts that have been implemented from the first day the airline commenced operations.

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