PREP MATERIALS CLASS 10/01

2. Post a concise and insightful e-business model assessment in your blog.
Please use the framework on the Word doc + cite and link to 2 additional online sources to support your e-business model assessment.

Easy Group launched EasyPizza, a yield management delivery-only pizza company in Milton Keynes.
Unlike most other delivery chains, EasyPizza facilities store pre-made, frozen pizzas. For this reason, customers must choose their pizza from a limited array of varieties — substitutions are not allowed. Also unusually, EasyPizza offers discount rates for pizzas ordered in advance and at off-peak hours, a strategy to improve the utilization rate of their ovens.

https://www.easypizza.com/easypizza/web/

EasyJet is a company low cost officially known as EasyJet Airline Company Limited. It is one of the largest low-fare airlines in Europe, operating locally and internationally.

http://www.easyjet.com/fr/reserver/index.asp

3. In your post, please include your comments on the role of yield Management in the business model.

The process of improving corporate revenue through the implementation of strategic Pricing and Inventory controls

The role of the yield management on easy pizza using the EasyGroup's yield management system, the pizzas will be priced differently during peak and off-peak times in order to attract custom when demand is normally low.

The easyPizza.com franchise is attractive because it is well priced, it is easy to operate, it offers a centralised kitchen, one national phone number and web address, a yield management system and a guaranteed delivery window.

This business could reduce costs by making use of call centres and the internet for placing orders.

100 % in delivery instead of restaurants (the franchises would not have high street shops, thereby reducing overheads).

The role of the yield management in Easy jet is to change the prices of the place according to the demand.

Which makes increase the initial prices and reduce the availability according to the projected demand.

4. Post an explanation of how Easy uses Yield Management to increase profit while offering reduced prices.

To optimize its turnovers, the yield management brings to adapt its offer in anticipation of the demand.

According the period, the company will meet itself with a too important capacity; sales are not enough to make profitable the day because of the high fixed costs. On the contrary the capacity can be too weak and be under a big demand.
We cannot satisfy all the demands and lose a customer due to the lack of product.

The yield management is useful for it. For the one to attract more customers, modulate the prices according to the demand. For the other to sell products at the most interesting prices.

The main objective is to maximize its turnover for its capacity. The yield management finds particularly its utility in the companies of which loads are mainly fixed because the yield management which affect exclusively on the turnover and because the result depends essentially on this. More the turnover will be optimized better will be the turnover.