Monthly Archives: November 2015

The European low-cost airline EasyJet celebrated 20 years of activity last Tuesday. At the same time, it hit a new profit record with 18% pre-tax increase of profits at the end of September.

Even though profitability in the airline industry is difficult to obtain, EasyJet managed to earn high profits at relatively low prices. Because of its cheap fees, the company revolutionized the flight industry by making flying affordable to almost everyone.

Based on personal experience, however, revolutionary prices not always corresponded to the best customer service. As a result, following its 20 years’ anniversary, EasyJet has finally introduced a loyalty program for frequent flyers who fly more than 20 times a year with the airline. In accordance to the company’s low spending and pricing policy, the reward systems is carried out in a simpler and cheaper way than the one usually provided by airlines. It is based on tickets flexibility, a specialized customer service and exclusive price guarantees.

That is not all. Its 20^th anniversary was also an occasion to develop a tighter relationship with the customers. In particular, the firm painted its anniversary aircraft with customers’ favourite pictures of European Vacations with the airline.

EasyJet is finally adding onto its apathetic cheap prices. Yes, cheap prices attract more customers, but loyalty and word of mouth can make the real difference.

Credits

Topham, Gwyn. “EasyJet Launches Loyalty Scheme as Airline Celebrates 20 Years in the Sky.” The Guardian. © 2015 Guardian News and Media Limited, 10 Nov. 2015. Web. 17 Nov. 2015.

Farrell, Sean. “EasyJet Profits Hit Record for Fifth Consecutive Year.” The Guardian. © 2015 Guardian News and Media Limited, 17 Nov. 2015. Web. 17 Nov. 2015.

Thompson, Nigel. “Video – EasyJet Unveils New Aircraft Paint Job.” Mirror. MGN Ltd, 03 Feb. 2015. Web. 17 Nov. 2015.

The Volkswagen emission scandal has damaged one of the world’s most renowned car brands. According to an estimate offered by Credit Suisse, the brand could suffer of $86 billion losses.

In order to mitigate the effects of the crisis, VW is looking for redemption. On this perspective, the car manufacturer will be focusing more on hybrid models and engines with the most forefront efficient and low-pollution technologies. In particular, research would be moving from low-range plug-in hybrid products, such as the Polo GTE and the Passat GTE, to plug-in hybrid products with a higher mileage range.

By focusing its products on hybrid cars, the brand would have to regulate its business strategy. Since hybrid models are relatively less popular then the regular gasoline powered one, this would potentially reduce the market share. Yet, more research in hybrid cars might benefit the whole society, developing affordable, efficient, and eco-friendly vehicles.

The drastic change to a “green” product line might positively influence other car manufacturers as well. Even though other producers of diesel cars have not encountered the same problem, the investigations reported differences between test emissions and road emissions, which might lead to an adjustment to major research in non-diesel, electrical vehicles.

Many depict the scandal as dreadful for the economy and society as a whole. However, the event might even benefit us by fostering the use and research for eco-friendly vehicles and highlighting the importance of a ethical and sustainable business decisions.

Credits

Paukert, Chris. “Volkswagen Emissions Scandal Could Cost $86 Billion, Report Says – CNET.” CNET. CBS Interactive Inc., 2 Oct. 2015. Web. 17 Nov. 2015.

Cremer, Andreas, and Jan Schwartz. “Volkswagen’s Chosen Path To Redemption? Turning Into Tesla 2.0.” Volkswagen’s Chosen Path To Redemption? Turning Into Tesla 2.0. N.p., 13 Oct. 2015. Web. 17 Nov. 2015.

The shoe brand “Toms” had the courage to develop a new sustainable business idea. Its one-for-one way of selling products sparked a new trend that aims to create social value through donations for each item purchased. However, as its successful business model spread in other industries, many pointed out the clear inconsistencies related to the effectiveness of its charitable donations.

As Sharon Shamuyarira reports on her blog, businesses that make one-for-one donations to communities in need, fail to assess and operate at the root of the problem. Essentially, by donating pairs of shoes, Toms improves the conditions of needy individuals temporarily without any durable changes to their living condition. Most importantly, when relying excessively on the charitable initiatives of the company, the local development might suffer.

In contrast to the idea expressed on the blog, not all donations that follow this pattern fail to heal certain societal problems. For example, one-for-one donations that involve improving the health of a certain community might benefit its general well being. Consequently, better living conditions might benefit productivity and businesses and gradually eradicate underdevelopment.

One-for-one donations can be very effective to eradicate societal issues only when meeting the primary needs preventing the development of a community. On this perspective, instead of gifting items such as shoes, Toms must rather focus its charitable donations on resources that support a basic but durable development of the needy communities.

Credits

“The One-for-one Business Model: Avoiding Unintended Consequences.” Knowledge Wharton The Oneforone Business Model Avoiding Unintended Consequences Comments. Wharton School of the University of Pennsylvania, 16 Feb. 2015. Web. 17 Nov. 2015.

Davenport, Cheryl. “The Broken “Buy-One, Give-One” Model: 3 Ways To Save Toms Shoes.” Fast Company & Inc © 2015 Mansueto Ventures, LLC, 10 Apr. 2012. Web. 17 Nov. 2015.

The Expo Milano 2015 Logo

The Expo Milano 2015 has ended yesterday, 31^st of October, after 6 months of marvelous exhibitions and innovative events. The very successful exposition’s sparked the interest of 21 million visitors (of which one third international) with its architecturally harmonious and intriguing pavilions, each displaying the culture and products of a different country.

Even though not many might not be familiar with the event, the exposition was a World Expo organized in Milan with the International Expositions Bureau  and focused on one main theme: “Feeding the Planet. Energy for life”. Its aim was to bring awareness to defeat undernutrition and malnutrition through more sustainable political choices and better technology to “balance between the availability and the consumption of resources”[1].

The company in charge of the Exposition itself was a perfect example of sustainability. For instance, separate collection of waste reached up to 70 % of the total, and carbon dioxide emissions were relatively low thanks to the use of ecological technologies, such as on-site electrical cars and efficient construction materials. Moreover, in order to reduce waste and foster a positive social impact, many of the pavilions will have a second life. Monaco’s pavilion, for example, will be dismantled and sent to Burkina Faso to become the Red Cross operating headquarters.

Expo Milan 2015 was a clear example of how sustainability is gradually becoming one of the key aspects of a company’s success. In particular, the choice of the consumer is not limited any more to the value of the service or product provided; it now integrates the firm’s impact on society and the environment.

The Tree of Life and the Italian Pavilion at the Expo Milano 2015

Credits

“Six-month Milan Expo Concludes, Attracts over 21 Million Visitors.” Milanozone. Emirates News Agency, 01 Nov. 2015. Web. 01 Nov. 2015.

“Feeding the Planet, Energy for Life.” Expo Milano 2015. Bureau International Des Expositions, n.d. Web. 1 Nov. 2015. <http://www.expo2015.org/en/learn-more/the-theme>.

“Pavillon Monaco.” Pavillon Monaco Expo Milano 2015. Pavillon Monaco Expo Milano 2015, n.d. Web. 1 Nov. 2015. <http://monacopavilion.com/pavillon/project-and-philosophy/>.

[1] “Feeding the Planet, Energy for Life.” Expo Milano 2015. Bureau International Des Expositions, n.d. Web. 1 Nov. 2015. <http://www.expo2015.org/en/learn-more/the-theme>.

“The Expo Milano 2015 Sustainability Report.” Expo Milano 2015. Expo 2015 S.p.A., n.d. Web. 1 Nov. 2015. <http://www.expo2015.org/en/sustainability-report->.