E Business of Qatar Airways - Research Paper Example

E-Business: Qatar Airways Table of Contents 1- Introduction At the present, information technologies producers and vendors are the drivers of financial growth, since the innovation brought by the computing, telecommunications, and electronic media industries have revolutionized every kind of business (e.g. small, medium and large). In addition, the use and implementation of the internet technologies such as e-commerce and e-business have become as common as telephones, fax machines, and business cards in carrying out business activities. On the other hand, the continuous developments and improvements in the internet tools and techniques have made business sector more competitive than ever before. Since, by using internet every organization in the world becomes a local competitor. However, almost every organization now realizes that the internet is a very supportive technology for better dealing clients and reaching into the global markets (Summers et al., 2003, p.67; Watson et al., 2000; Rao et al., 1998). This paper presents a detailed analysis of the ‘Qatar Airways’ airline company regarding its current and future use of e-business and internet technologies. The basic aim of this research is to provide a deep insight into the presently working web based business structure and further enhancements in e-business technologies. This paper will also address the basic idea to develop a novel business model and how Qatar Airways can apply an appropriate web based business strategy to enhance its business. This research will present the idea regarding the implementation of the new web based/e-commerce technology for the potential enhancement of the business and marketplace. In addition, this research will cover Qatar Airways present online business technology, its key benefits, functional specification, and implementation steps for the implementation of the new internet and business technology that can enhance the Qatar Airways business support, offer better competitive edge, support business operations and provide strength for effective handling of the business operations. 1.1. The case context This business sector I have selected is the web based platform for airway’s business. Additionally, the business sector I have selected is new in the field of ecommerce business. At the present, a lot of airway companies are offering web based business support for instance, web based booking, online payment and other facilities. However, our research is about a bit different ecommerce based business platform for the Qatar Airways Business 1.2. E-Commerce: An overview The wide-ranging availability and easiness of the internet for the exchange of transactions between sellers and buyers is the fundamental cause for the growth of electronic commerce (e-Commerce). “Electronic commerce is the process of buying and selling products, goods, and services electronically with computerized business transactions through internet, networks, and other digital technologies” (Laudon & Laudon, 1999, p.25). The World Wide Web has become a common medium for electronic commerce (e-commerce), creating and maintaining contemporary ways for carrying out business activities, to cooperate with one another and their customers. In most simple words, e-commerce means carrying out business activities online (Norton, 2001, p.371). It also encompasses various activities at the back of those market transactions, for example, customer support delivery, advertising, marketing, and payment. In addition, by replacing paper-based or manual working with electronic techniques, as well as by utilizing information flows in contemporary and up-to-date manners, e-commerce can accelerate the business activities such as delivery, ordering, and payment for products, goods, and services on the other hand diminishing corporation’s operating and inventory expenditures. In the same way, “making use of the internet and other digital technology for organizational communication, coordination, and the management of the organization is acknowledged as e-business” (Laudon & Laudon, 1999, p.25). 1.3. Company Description Qatar Airways is a rapidly growing airline in a quickly transforming region of Middle East and is on the top of its regional business. Presently Qatar Airways has achieved the honor of a five-star airline. These happened due to implementation of the its better management services, enhanced working structure implementation, advanced technology incorporation and mainly by incorporating the high-tech e-commerce business platform that offers the business to effectively deal with, handle, and control the operations. In addition, in business of the Qatar Airways the internet presence is aimed to meet the quality and excellence of intergenerational standards of airline business. Qatar Airways is moving in the correct direction by taking advantages of latest information technologies (M-Travel, 2007). 1.4. Company benefit from e-business This section will present how business has achieved the benefits from the adoption of the new technology based e-commerce business. Stensgaard (2003) outlined that in the Qatar Airways' the use e-commerce has offered modernism that is complementing additional projects like that: the growth of its fleet, the transformation of the current airports, the beginning of new traveling destinations, as well as developing a new business ‘Doha International’ (Stensgaard, 2003). In addition, the implementation of the airline’s e-commerce and internet based structure has offered Qatar Airways’ business a capability to take a huge step toward the implementation of the e-commerce operations as well as brought the internet as central point of Qatar Airways marketing and sales efforts. However for an airline company of this volume and ambition we still have a number of challenges in comparing with North American and European airlines in terms of online marketing, website functionality as well as internet sharing generally. Qatar Airways has a complete e-commerce expansion plan and there are numerous things planned to arise on website: www.qatarairways.com over the subsequent months (M-Travel, 2007). 2. Current status of e-business in the sector 2.1 Current (or potential) involvement in electronic business Monk & Wagner (2009) stated that the new technology implementation at any corporation aims to make the organizational process and tasks easier for workers or management. In every business, the implementation of new technology offers enhanced and effective results. In addition, it also builds quick and efficient value services. These technologies allow the corporations to expand their business toward global markets. Also, the clients would constantly desire the most excellent return for their cash’s value. Furthermore, every corporation, whether in the area of commerce, administration or non-administration services, implement modern technology to convene need and demands of the public (Monk & Wagner, 2001). Airlines have been greatly investing in technology for a lot of years. The beginning of the electronic and computerized airline reservations system was previously introduced in 1962 permitting the airlines to encompass real-time data on airline working details and number of seats obtainable on some known flight. In this scenario the American Airline's SABRE was initial airline company, which completely implemented a computer based reservation system in 1964. After that a lot of competitors have released their airline reservation systems over the next few years. The corporation as well was capable to better track revenue, for the reason that of the computerized system as well stored effective business information (Buckfelder, 2009). Emergence of web based business for airlines and establishment of the quick online sales channels were started in 1990s. The airline companies were previously having the arrangements of mainframes as well as the knowledge of data collection, consequently the transition to web based ecommerce business was a natural one. After the implementation of the web based ecommerce and airline reservation system flight information as well as pricing were obtainable simply in a travel agent's office or via the airline's phone line or ticket counter. In addition, the enlargement in online sales has been considerable at a lot of airlines. For instance, Delta Air Lines started web based ecommerce and online ticket sales in 1996. At that time the Delta Air Lines ecommerce business was only able to attain less than one percent of sales However in 2001 Delta Air Lines was able to attain sales of more than eight percent through the web based ecommerce platforms (Buckfelder, 2009). The e-commerce based structures in airline business are no longer in its infancy. Since, the Airline companies are dynamically making attempts to move and attract people to their web based sales channels. Additionally, a number of them make certain that their lowest fares are simply obtainable through the web based platform of the airline. However, transformation to the online website is helpful to the companies. Since, a client now is able to check his reservation online as well as print boarding passes. In this scenario airlines are also capable to send announcements via email or text message if flights are delayed or canceled (Buckfelder, 2009). Stensgaard (2003) discuss that the oracle e-business suite facilitates Qatar Airways to have a more advanced and modern view of its business. This new business technology is also facilitating the business in making business informed strategic decisions throughout this period of investment and development from reorganization business procedures as well as enhancing business profits (Stensgaard, 2003). CEO (Chief Executive Officer) of Qatar Airways, Mr. Akbar Al Baker says, by implementing e-business technology at airline management and administration we are having more control over the business and organizational information that is very important for Qatar Airways effective and on time decisions. It is also outlined that Qatar Airways business embark upon the majority of comprehensive expansion programs ever in the history of Qatar's transportation business area (Stensgaard, 2003). In contrast with, Qatar Airways, the British Airways was previously able to sell half of its airline travel tickets via the web based ecommerce platform since 2003. Then, the British Airways decided to reduce 6,500 jobs in coming years. Reportedly, the reduction in jobs are geared in the direction of reforming the slashing costs, operation, and downsizing the business to jumpstart a drooping bottom line. As a result, these initiatives will shrink the present workforce by 12% as well as the British Airways company is preserving comment on the likelihood of additional measures (Greenberg, 2000). British Airways is the United Kingdom’s major airline. British Airways offers facility of flying to more than 38 million passengers per year. British Airways also offers more than 220 destinations of travelling across the world. In last quarter of year 2003 the web based platform of the British Airways has made 30 times more sales as compared to same quarter of last year. In case of web based business of the British Airways, the UK retailers were able to save £55 million a year by adopting web based payment verified through Visa. British Airways, Head of e-commerce, Mr. Simon Parks Smith stated that British Airway’s online bookings at the present account for 46 percent of their short haul, non-premium commerce in the UK as well as this amount is continuously increasing. The complete volume of tickets managed through the internet means that we are frequently determined to have the most excellent safety. Simon Parks Smith stated that our company wants to offer a lot of services to our customers via internet (Visa Europe, 2004). 2.2 E-business model adopted (proposed) This section is about the Qatar Airways business to business technology implementation. Here I will outline the new technology that can facilitate the Qatar Airways business to have a better business and enhanced customer management. Through the implementation of the innovative business technology Qatar Airways Corporation can survive effectively and offer excellent services and products. Qatar Airways Corporation, in turn not to be relocated, has to finely take steps to improve its central system as well as operations (Vaskelis, 2001). Business-to-Business (B2B) model is a kind of dealings in which the dealings of services or products between companies is made. Qatar Airways make use of B2B to maintain e-communication among enterprises and business to detach it from Business-to-Commerce type dealings; however at the present it is as well employed for marketing reasons (Vaskelis, 2001). The application of the B2B model will be helpful in developing e-business plans or e-commerce solutions for Qatar Airways. In addition, the web based software can be incorporated to Qatar Airways SCM (supply chain management) as well as client communications to take profit from immediately processing of Qatar Airways requirements and dealings (Burger, 2006). The cell phone technology is rapidly becoming the most well-liked device for browsing the internet. Through this technology most of the people are frequently log-on to internet and search for the information regarding a business, entertainment, and other Medias (Kitch, 2009). The term and technology of the mobile commerce is utilized to outline the emerging practice of carrying out promotional and financial tasks through the utilization of a wireless handheld device. The process of performing e-commerce activities using personal digital assistants (PDAs), cell phones, and other hand held devices is acknowledged is mobile commerce. Furthermore, the implementation of the m-commerce has been the most sophisticated idea that is operational these days and going to be enhanced more and more day by day (Tatum, 2009; Turban et al., 2005). I will propose mobile-commerce based business model for the Qatar Airways. Through the mobile-commerce technology Qatar Airway’s customers can access the web without requiring and discovering a place to plug in the huge system. In this way, they can easily interact with Qatar Airway (Tatum, 2009) & (Schwiderski-Grosche & Knospe, 2002). Schwiderski-Grosche & Knospe (2000) presented some advantages of mobile commerce for the businesses. The Qatar Airways can take the benefits and improve its business structure. Since, the m-commerce offers the facility regarding the real time handling and access to the business. Then another main factor Qatar Airways will have is regarding the accessibility. In this scenario Qatar Airway’ customers will be capable to access mobile commerce applications anyplace and at anytime. Next Qatar Airway will also have the advantages regarding the security. Here in aspects of security regarding the business handling structure means mobile device. In addition, the Qatar Airways can implement mobile or access password to restrict the access to business data. The next main advantage Qatar Airways will have is the localization. Since, there are various network providers those are able to localize their users by utilizing positioning systems like that GSM, GPS or UMTS as well as present them location-dependent services for example, emergency calls, travel, restaurants, hotels and amenities. The feature of convenience is also a plus point that is brought by the mobile commerce (Schwiderski-Grosche & Knospe, 2002; Turban et al., 2005). 2.3 Factors contributing to the success of e-business Qatar Airways has taken a lot of practical steps regarding e-commerce applications. They have an online booking engine that facilitates passengers to search for the flights all through the whole flights schedule network. In addition, the Qatar Airways offers the facility to customers regarding the online booking, pay online as well as have tickets issued entirely through its website (Qatar Airways., 2007). Qatar Airways also offers the facility to the lowest fare finders. This offers greater attraction to business customers to have the facility regarding the search for the lowest rates of flights in different dates and regions. This offer is as a bonus for online bookings, additional Qmiles are obtainable (Qatar Airways., 2007). Online payment is another e-commerce technology that is implemented at the Qatar Airways business. Through this technology we can book online as well as pay through Visa Credit card enter into a competition. This attracts customer all through the world to have an easy way of booking and managing the business in a better and enhanced way. These are the means through which airline is trying to promote e-commerce (Qatar Airways., 2007). The online customer services are also a main e-business technology that can be found on the Qatar Airways business website. In this way Qatar Airways offers the facility to a person to have an easy and fastest access to the business website and can discuss, resolve, and take help in case of any problem or query (Qatar Airways., 2007). The e-marketing is also helpful in promoting Qatar Airways business. Qatar Airways business has adopted a lot of intelligent e-marketing initiatives regarding the enhanced business and organizational management. Here I will outline some of them regarding the better assessment of the business operations and dealing that offer better business support to Qatar Airways. The most recent e-marketing initiative taken by the Qatar Airways business is regarding the launch of the Chinese language portal of the website. Chan (2009) has outlined about incresing industry of the tourism in China. According to Chan (2009) the World Tourism Organization has forecasted about the augmenting tourism in China and outlined that China will get 100 million outbound tourists till 2020. The administration of the China has predicted and as the china has become world’s forth major host country for international tourists as well as the main source marketplace intended for tourists in the Asia region, this has stated by the vice chairman of the NTA (National Tourism Administration) Du Jiang. China's tourism business has been powerful expansion and has got more than 40 million outbound tourists in 2006 (Chan, 2009). According to Chan (2009) by seeing the potential growth in Chinese tourism industry, Qatar Airways (Doha-based airline) has launched the Chinese language version/portal of the website intended for the increasing amount of Chinese tourists. This is a major step of the marketing consultants and specialists of the Qatar Airways. The new Chinese version of the website facilitates clients in performing reservation online, checking ticketing prices and flight schedules (Chan, 2009). One of most important marketing activities carried by the Qatar Airways is regarding the establishment of the business relationship with the Asia Pacific travel search engine that will facilitate, access, and display real-time “Qatar Airways” tariffs, and directly link the customers with the Qatar Airways web site (Chhan, 2007). Marcus Chhan (2007) has outlined a major marketing initiative taken by the Qatar Airways. According to him, Qatar Airways has formed a relationship with the Bezurk.com for the promotions of its fares on Bezurk's web based flights search engine as well as deals channel (Chhan, 2007). Mohale (2009) has outlined another new marketing transformation through which Qatar Airways has initiated a novel section to its business website. The website address of this section is “atarairways.com/corporate”. This section is developed to permit the airline’s business clients to have an easier access to the related functions according to their travel requirements (Mohale, 2009). This new corporate travel segment merges information all through the Qatar Airways’ complete website into a summarizing reference guide, as well as permits South African business clients to conduct their travel business online exclusive of expending time searching for their preferred information as well as jobs (Mohale, 2009). 3. Developing new e-business 3.1 Proposed Website In this section I will propose a new web based business that will be similar to web based airline reservation business. This web based business will allow the people to have reservation of airline ticket using the web based platform. This proposed web based system will offer the online advertisement, booking, seat selection, destination selection and main alerts. Furthermore, the proposed web based platform will support the effective handling and management of the XYZ airline business. 3.2 Technologies involved The proposed web based business will involve a lot of business technologies those will be used for effective management of airline business operations. These operations will effectively handle and manage the corporate tasks. Coming sections will outline some of main functions and features that new proposed web based reservation system will offer: 3.2.1 Services management In scenario of services management the proposed web based platform will offer effective handling of services and management of corporate operations. The website of the XYZ airline will offer the customers a lot of improved facilities. The website design of the XYZ airline business will be based on the good looking user interface and attracting information on the front pages. In addition, the front page will offer most interesting and working structure. That will be about the flight search. Since, the most of the web site users open the web-page with the intention to search for a flight schedule. In this scenario the XYZ airline web-page offers the customer all the necessary options regarding the selection of source, destination, time and date. The screen print of the XYZ airline proposed website is given below: Figure 1Portion of Main Page 3.2.2 Payment management In case of web based payment scenario we need to offer a lot of payment options. For instance, we can offer payment options like that PayPal, Credit Card, Bank funds transfer, etc. Since, more payment options will attract more customers. These different, easy, and effective payment options will increase the business revenues and offer more beneficial use of web site. 3.2.3 Advertising policies To advertise XYZ airline business we will use the direct web based marketing methods. Besides this we will also use email marketing that will offer more enhanced marketing facility to directly market the target customers. 3.2.4 Order management For the proper order management the business website will use a proper database system that will record all web based request regarding seat reservation, flight inquiry and other tasks. In case of order management for the customer requests we will use a proper customer booking management department that will handle the web based request management. 3.2.5 Sales analysis For the sales analysis of the XYZ airline business we will use some reporting tools that will be helpful in analyzing and assessing the business database determined transactions. In this scenario the XYZ airline business finance department will be able to assess and analyze the business deals and transaction to effectively assess the business sales related aspects. 3.2.6 Usability methods for evaluating the website To assess the web based platform usability we need to incorporate a lot of usability methods. In this scenario the proposed system needs to offer effective user interface, fast navigation, simple color combination, and easy to use tools regarding web based airline reservations. By incorporating these functionalities we will be able to have more effective handling and management of the user related usability aspects. 3.3 Critical success factors To make the overall project successful we need to effectively concentrate on the planning and resource management during the project development. In this scenario we need to assess and manage the overall project in a way that all the resources (time and cost) could be utilized in a better way. The effective technical support will also make the overall project more successful. 4- Conclusion This paper has presented a detailed analysis of the Qatar Airways business with respect to its e-business approach. This research has offered a detailed analysis of the aspects and enhancements of e-business for the Qatar Airways. The web based platform is offering a great opportunity in managing business tasks, customer retention, enhanced management and effective operations management. This research has also highlighted main advantages those can be attained through a web based business. This paper has discussed the business to business context for Qatar Airways and outlined a new business methodology that is “mobile commerce”. This technology can improve the business of Qatar Airways considerably. It will be helpful to the business in attracting more customers. Then I have proposed a new business (XYZ Airlines) similar to web based booking and reservation. In this scenario I have outlined some of main aspects for the new web based business development and analysis of the potential features for its web based platform. I hope this research will offer a valuable insight into the overall context of e-business structure and web management. 5- Bibliography Buckfelder, B., 2009. Role of E-Commerce in the Airline Industry. [Online] Available at: http://www.ehow.com/about_5483880_role-ecommerce-airline-industry.html [Accessed 03 April 2010]. Burger, A.K., 2006. 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