Operation Strategy

The Hub and Spoke structure means an investment structure that involves a number of investment vehicles, as each remains independently managed, as they pool together assets in a single investment vehicle. The individual investment vehicles are the ones that are referred to as the ‘spokes’ while the central vehicle is the ‘hub’. This brings a number of benefits to investment managers and among them are; tax savings and economies of scale. This structure is an alteration of the point to point structure (Goedeking 2010).

The point to point strategy is a strategy in which two individually managed together investments vehicles come together and pool their assets as a combined investment vehicle. The benefits may be the same to the hum and spoke structure but that of economies of scale will not be as beneficial as in the first structure based on the fact that two vehicles cannot be compared to more than two in the first structure (Goedeking 2010).

Easyjet and Ryanair are two airlines that operate in Europe and both have been competing for a long time. Easy Jet is a British airline that operates locally and internationally and carries more passengers than other UK-based airlines. On the other hand Ryanair, an Irish low cost airline operates more than 250 Boeing 737-800 between Europe and morocco and is the largest low cost carrier in Europe. Both these two carriers employ different strategies in an attempt to maintain a competitive edge as they operate in the European air.

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