Tag Archives: low cost strategy

Differentiating between “regular” and “premium” customers

There are many operations in which there are different classes of customer – such as hotels, hairdressers, and airlines.  This is based usually on how much the customer pays for different levels of service.  In many cases it is not … Continue reading

Posted in Chap 08 Queuing and customers, Sector: Transportation | Tagged , , , | Leave a comment

Budget v. Boutique – slugging it out in the gym sector

Interesting piece on Radio 4’s You and Yours this morning.  Apparently, according to Mintel, the sector is forecast to grow from £3 bn annual turnover now up to £4 bn by 2022.  But mid-market gym operators are suffering because they … Continue reading

Posted in Chap 02 Winning Customers, Sector: Entertainment & Sport | Tagged , , | Leave a comment

Ryanair stays ‘tough’ with airports

In the last few years Ryanair has significantly changed its approach to customers (see my blog of 14 April 2014).  But it continues to be ‘tough’ when it comes to its relationship with airports.  The airline has just announced that … Continue reading

Posted in Chap 04 Location and design, Sector: Hospitality & Tourism, Sector: Transportation | Tagged , | Leave a comment

Low cost airlines – the story of Goldilocks

There has been a lot in the media recently about low cost airlines – with the demise of Monarch and the cancelling of thousands of flights by Ryanair.  For me this illustrates how getting your strategy “just right” is incredibly … Continue reading

Posted in Chap 14 Operations strategy, Sector: Hospitality & Tourism, Sector: Transportation | Tagged , , | Leave a comment

Why operations are at the heart of any business strategy

I blog about operations.  But this has to be placed in the context of the overall strategy of the business or organisation conducting those operations.  So it’s worth now and again to ponder on strategy, and reflect on current thinking … Continue reading

Posted in Chap 02 Winning Customers, Chap 14 Operations strategy | Tagged , , , | Leave a comment

The impact of seasonality and fuel costs on easyjet

easyjet shares lost 6% this week on the release of their half year results.  The airline, like most other similar airlines in Europe, always makes a loss in the winter months  due to lower levels of demand at this time … Continue reading

Posted in Chap 07 Capacity and demand, Sector: Hospitality & Tourism | Tagged , , , , | Leave a comment

“Perception beats reality in pricing”

I love the headline from this Bain & Company article.  Largely because for years I have banged on about managing perception, as well as managing reality, in any service operation you might run.  For instance, one area that this is most … Continue reading

Posted in Chap 02 Winning Customers, Sector: Entertainment & Sport, Sector: Financial Services, Sector: Hospitality & Tourism, Sector: Public Services & Charities, Sector: Retail | Tagged , , | Leave a comment

Risks associated with being a low cost operator

There are a number of risks associated with being a low cost operator. A cost leadership strategy may have the disadvantage of lower customer loyalty, as price-sensitive customers will switch between operators if they offer a better price. A reputation … Continue reading

Posted in Chap 14 Operations strategy, Operations Management | Tagged , , | Leave a comment

What’s a low cost firm look like?

An operator implementing a cost leadership strategy tends to have many of the following characteristics: Few layers between the top management and workforce, keeping their reporting structure simple. A small head office, with relatively few corporate staff. Operating decisions delegated to unit … Continue reading

Posted in Chap 14 Operations strategy, Operations Management | Tagged , | Leave a comment

Apple up and low cost androids in – so bye-bye Samsung?

I just love it when two different stories I’ve blogged about merge into one…  This week I blogged about Apple’s record profits, and have been running a series of blogs on the low cost strategy.  It seems that a combination … Continue reading

Posted in Chap 03 Processes and life cycles, Sector: Manufacturing | Tagged , , | Leave a comment