Easyinternetcafe Case

EasyInternetCafe

The Future of Logistics

Module 3: Session 8 Case Study

Lorne Anderson

ID# 2004491

November 6, 2014

Table of Contents

Executive Summary1

Issue Identification2

Environmental and Root Cause Analysis3

Recommendation and Implementation5

Monitor and Control6

Conclusion7

Executive Summary

EasyInternetCafe (eIc) was launched in 1999 under the umbrella; EasyGroup. The mission, to provide customers with internet access at low costs during the boom in technology. Upon launch, eIc saw great support and rapid growth in all its regions. EIc is now facing difficulties due to the ‘pop of the internet bubble’. The initial strategy, yield management was successful due to the rapidly increasing demand of the service. This strategy will still be effective with less demand, the approach just has to change. The strategy is to franchise the operations, moving away from large cafes (250 to 800, terminals), and open many smaller cafes (20 to 30 terminals). With moving to smaller cafes, the plan is to open more cafes in more locations. The problem with opening such a large number of locations is that it puts a very large strain on logistics, making the purchase, delivery, and payment of items difficult. Outsourcing these non-core competence activities will allow more focus to be had on the core competence activities. Ingram Micro will provide complete integrated solutions. Ingram Micro has great relations with many large IT vendors, which would provide eIc with numerous discounts. With Ingram Micro taking care of all procurement, transportation, warehousing, configuration, and billing and payment management, eIc will be able to focus on the main strategy of growth, in order to see profits increase.

Issue Identification

When the ‘internet bubble’ popped, demand for internet cafes significantly dropped. This created a problem for eIc and its 47 stores worldwide that housed 7267 computers. EIc incurred cumulative losses of £80 - £100 million...