Operations Management, Low-Cost Airline Company

Operations Management, Low-Cost Airline Company - Assuming...

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Assuming that you are operating a low-cost airline company, outline how your company could achieve the competitive advantage. Competitive advantage is defined as the creation of a system that has a unique advantage over competitors. Low-cost leadership means achieving maximum value as defined by customer. For this question we would pose ourselves as the management of a low-cost airline company. To achieve the competitive advantage as a low-cost leader in the airline industry, assuming that we have already developed our mission statements, we examine the ten strategic operations management decisions and determine the key tasks and/or personnel needed for each of them. 1. Design of goods and services As a low-cost airline company, we design efficient goods and services that would consume the lowest cost possible. To begin with, we fly passengers to their desired destinations with no additional services. There are no free food and beverages and no seat assignments on the plane. These reduce the costs incurred in providing meals and allowing priority bookings. However, passengers can still acquire them for small fees. Also, we do not offer supplementary services such as car rentals and hotel bookings. Passengers need to arrange them on their own. We adopt a ticketless, electronic check-in system to save cost on printing and distributing paper. 2. Managing quality Low-cost doesn’t mean low quality. As a low-cost airline, we strive to achieve our customers’ quality expectations while keeping our costs low. We ensure that our flight operations are safe at all times by complying with international standards and procedures. Our aircrews are well-trained to maintain the quality of their services. We minimize flight delays and at the same time protect our passengers during bad weather. At the airports, we provide efficient baggage handling and check-in system that are quick and fuss free. 3. Process and capacity design To maintain our costs low, we keep our operation process as simple as possible. By using only one type of aircraft, our aircrews and operations staff are trained specifically to run only that type of aircraft. This way, we save costs on multiple trainings, maintenance of different aircrafts and the
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