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  • Essay / Operations Management Strategy at Easyjet - 1510

    Competition is the name of the game when it comes to capitalism which is the main socio-political system of the world. Through competition between continents, countries, industries and businesses, resources are efficiently allocated 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 intertwined with other functions of a business such as marketing and finance. A very competitive industry in which operations management makes or breaks a company is the airline industry and particularly its low-cost portion. In the low-cost airline sector, the service provided has been almost commoditized and companies are striving to be profitable while being competitive, in order to please their stakeholders such as investors and customers. Easyjet is a well-known low-cost airline that operates in several European countries and was founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995. Easyjet's goal is to be the first low-cost airline prices in Europe while providing exceptional value to its passengers. . This is a difficult goal, but the company uses various operations management strategies to achieve it. These strategies will be analyzed in order to understand the positive and negative aspects of each and will also be compared to what direct competitors are doing in a similar or different way. When it comes to low cost, we've identified eight different strategies used by Easyjet that help reduce expenses. These strategies include using the Internet to reduce distribution costs, efforts to maximize the use of substantial assets like airplanes, ticketless travel, no free lunch on board, efficient use of airports, paperless operations, economies of scale and little management. layers. The quality and value offered to passengers is achieved through strategies such as employee satisfaction, use of the Internet for convenience, centrally located airports and tight flight schedules. Legendary investor and businessman Warren Buffett said: "Whenever I read about some company undertaking a cost-cutting program, I know that this is not a company that really knows what costs. Pushes don't work in this area. The really good manager doesn't wake up in the morning and say, “That's it. "One day I'm going to cut costs," any more than he wakes up and decides to practice breathing." His words provide an excellent introduction to begin analyzing Easyjet's cost-cutting efforts that have been implemented from the first day the airline started operations..