easyInternetcafe was launched in 1999 under the umbrella of the easyGroup. The mission of elc was to provide consumers with access to the Internet at the lowest cost. Despite the excellent support and recognition from the public, elc was experiencing adversity of keeping their business profitable after the Internet Investment bubble burst. The original concept of owning many of the large stand-alone cafes with 250-500 PC terminals at each café was not working well. elc undertook a dramatic restructuring of the company by downsizing the cafes. Many of the large, original stand-alone elc stores will be run by franchisees. These franchised stores will become smaller stores which have 20 to 30 PCs terminals at each cafe and with no staff required except for regular maintenance. Less involvement with store operations allows elc to concentrate on activities of their core competence and outsource all the non-core activities. Their core competence was to continue building their ‘easy’ brand and applying the yield management model to the Internet café business. Their business goal was to open 4 new franchises per week over the next 3 years. In order to achieve the goal of growing their franchised Internet cafes business, an efficient, flexible and cost-effective logistics system is what they need for the provision of equipment to the franchisee. Since logistics is one of the non-core activities that is perceived as a bottleneck for scalability, the present logistics system of elc will be reviewed and findings of whether to outsource the logistics system will be presented to the management team.
Background of easyGroup
Stelios Haji-loannou, the founder of easyGroup, is the renowned Greek entrepreneur who utilized his family money to launch a serial of ventures. His first venture, Stelmar Tankers was found in 1992. The company very soon went into the public sector and was listed on New York Stock Exchange. In...
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