Thursday, April 4, 2013

Easy Case

Is this an industry that can embrace the easy plan of no-frills, inexpensive? Yves Doz, the Timken Chaired Professor of Global Technology and Innovation and Anita Balchandani, Senior advisor at Roland Berger Strategy Consultants, look into it in this Case Study.

According to the Case, threesome factors made easyCinema an attractive expansion area. First, the yield management capabilities that served the assembly so well running an airline could be utilise to easyCinema. For example, easyJet prices are linked to demand and advance purchase. Likewise, they would charge more than for peak-time movie tickets - like Friday and Saturday nights - and less at off-hours. While brisk films in the UK operated at 20% capacity, they never pursued a strategy of offering cheap seats for advanced betrothal or at off-peak times. Why are cinemas charging so more money when they are so empty, wondered Haji-Ioannou. Its like what airlines once were. By maximizing both capacity and the extent to which it was utilized, easyGroup hoped to grow cinema admissions well above current rates.

Second, easyGroup saw a focusing to use technology to automate the process of serving customers, thereby reducing labor costs. All bookings would be made finished the Internet or kiosks in the foyer of the cinema.

Third, the no-frills concept could also be applied.

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The cinema would now show all advertising or support promotional campaigns associated with films (activities that require monumental time and organization). They would allow film-goers to bring in their own provender and drink, eliminating the traditional concession stand. What were doing is taking away a consumer rip-off, insist Haji-Ioannou.

easyCinema is just one of many new ideas in the easyGroup pipeline. The refreshing Ventures Team is also looking at the possibility of compute hotels and cruises, gyms, bus transportation and home catering. The criteria for a...

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