Case: easy Internet Cafe
Table of Contents
Section 1 – Executive Summary
Section 2 – Root Problem
Section 1 – Executive Summary:
Easy Internet caf is planning to re-organize and revamp its business model in such a
manner that it can again become profitable company. At present easy the Internet caf is
engulfed with the dot com burst and losses are mounting. This case report is dealing with
the attempts to implement a new logistic system that if well executed it can develop
operations and can transform easy internet cafe into a profitable company.
The original business model is to build and operate on the principle of ‘economics of scale’
or Yield Management.
It has been decided to appoint franchisees for the new stores and also, if possible, for the
existing legacy stores. According to the new strategy, the franchisee would be required to
bear the costs of the property and the hardware. It was also decided to move from large
stores to smaller stores with 20 to 30 PCs.
The current logistic situation represents a bottleneck and it is one of the major causes for
the ongoing losses at easy internet cafe.
After reviewing different logistics scenarios and providers, It is strongly recommended to
take a closer look to support the logistic alternative that Ingram Micro is proposing. It
would benefit in the warehousing, accounting and transportation areas, it will also help
reduce the logistics costs and labor per new store, from almost to 2,000.00 to 1,357.00, this
and the benefits mentioned before, will help to achieve overall objective of being a
