British Airways Ebusiness Report - Essay Example

British Airways E-business Report Table of Contents British Airways E-business Report Introduction 3 Porter’s Five Forces Analysis 3 SWOT Analysis 5 E-business model for British Airways 6 Conclusion 7 References 9 Introduction British Airways is one of the biggest airlines of the world which conveys more or less 36 million travelers across the world consistently. Despite the fact that its principle builds are in London across two airports yet distinctive airlines incorporating GB Airways, Loganair, Comair, British Mediterranean and Sun Air are viewed as an important part of its system and thus carry its establishment.

Apart from delivering essential services to its clients, British Airways give numerous other add on services to them with a specific goal to pull in additional potential clients (Airlineworld.wordpress.com, 2008). Be that as it may, if the Airline business is broke down, it might get vivid that there are numerous other low cost airlines in UK that are posing a risk for the sustainability of this association. In any case, British Airways can manage them only when it can successfully utilize e-commerce for directing its business exercises (Currie, 2004).

The following report will try to examine the level of rivalry and how British Airways can adapt to it. E-commerce has left an incredible impact on rivalry in Airline industry also (Doganis, 2001). British Airways has been utilizing e-business for reaching its consumers. These sources have affected over shoppers in an extremely positive manner yet in the meantime, British Airways is thinking that it is troublesome to stand up to other competitions also. Porter’s Five Forces Analysis Michael Porter has traditionally characterized five constrains that drive industry rivalry, and has depicted a significant methodology to evaluating the by and large aggressive flow of an industry.

British Airways is however a decently secured association yet maintaining its position in a greatly intense time and following there are numerous other airlines which have been utilizing e-commerce to compete one another. The most plausible opponents in this industry are Easyjet and Turkish Airline. Turkish Airline is under quick advancement and giving various ends way encouraging ordinary costs as well as worth included administrations (Taneja, 2002). Despite the fact that British Airways likewise utilize a great deal of online and offline means for contending with the opponents yet the value element makes it challenging for the clients to favour it over other low value service providers.

Nonetheless, Easyjet beats British Airways in evaluating system since it is very economical and gives all web based administrations to its clients. Hence, these two airlines are considered as a substitute for each other. Porter’s Five Forces Analysis of British Airways Ecommerce Rivalry among competitors (High) The ecommerce services provided by Easyjet are similar to that of British Airways Turkish Airlines provides more services like online check in, multiple destination booking and easy booking access.

Threat of Substitutes (High) Turkish Airline is a big threat because of the low cost multiple destination services Threat of New Entrants (Medium) New Entrants of no-frill airlines such as Ryanair operating through e-business Bargaining power of customers (High) Customer has the higher power as they can check and compare deals from other airlines providing services online. Bargaining power of suppliers (High) High bargaining power suppliers due to high competition from GB Airways, Loganair and Sun Air.

Ryanair as the new contestant in e-business could be a danger for strength of this association and the explanation for this is that it is not only the no-frill services provided by them but also the accessibility of web based sources for clients make it their favourite among English consumers. (Mayer, 2008) Similarly, worldwide development of this administration through e-innovations might additionally influence the center business exercises of this association. Furthermore, the bargaining force of supplier and clients are two different components that may influence e-business of British Airways in a negative manner (Dart, n.d.).

SWOT Analysis In the case of customer relationship management, social networking promotion and email marketing has a major role this respect. For this reason SWOT analysis is a very reliable method for evaluation. SWOT analysis the internal and external factors that affect an organisation. The word SWOT stands for Strengths, Weakness, Opportunities and Threats. Strengths and Weaknesses are internal forces while Opportunities and Threats are external forces (Griffin, 2010). The following SWOT analysis demonstrates how British Airways utilized its strengths in order to grab the opportunities available and how it controls and reduces the weaknesses in order to reduce the elements of threats.

Strengths Strong brand Innovative strategies used by them Effective promotions online British Airways is a old and stable company Customers can directly book and check in online Weaknesses High costs for booking online Lack in online and social innovations Insufficient information given online Opportunities High quality of services delivered by them Attracts customers from all over the world Competitors fail in front of their innovative strategy Threats Threats from low cost airlines Ongoing recession globally High expenditures required in online promotion Higher power of the consumers Recent threat of cyber crime E-business model for British Airways Michael Rappa came up with 9 different types for business model for website who are involved in online business.

The 9 different models have been mentioned below. Brokerage Advertising Infomediary Merchant Manufacturer (Direct) Affiliate Community Subscription Utility In the case of British Airways, the model followed by them is the Manufacturer model or also known as the direct model. The reason for this being is that in their website British Airways is only promoting and selling their different services which are essentially their airline ticket booking services (Sunhilde & Hajnalka, 2011). The customers can book their tickets for various locations which are covered by British Airways.

They have a unique way of promoting their destinations by giving eye catchy photographs of the exotic destination beside they give you the fare prices and various plans for travel. One such example is given below. Conclusion After doing the complete analysis of British Airways e-business practices, it can be concluded that they are one of the leading airline agencies across the world. British Airways is one of the heading associations of the world yet it might need to defy a considerable measure of dangers because of its shortcomings and the purpose for this is the increasing awareness around consumers because of web sources.

Administration of e-business framework is the main source through which this issue could be managed. For this reason, the association needs to utilize above given suggestion and manage its current e-business arrangement. Subsequently, just through accompanying the contemporary IT requests, British Airways can help its profitability. Though they have high threats from competitors and which also means they have weaknesses of lack of enough information in their website, yet they have managed to maintain a strong brand image which has helped them to sustain in this immense competitive market.

There has been an increasing awareness of the consumers about online ticketing which is an opportunity for them. So by carefully marketing and providing all the essential information to their consumers, they can boost their profits and build up their brand further. References Currie, W., 2004, Value Creation from E-Business Models. Butterworth-Heinemann.  Liautaud, B. and Hammond, M. 2001. E-Business intelligence. New York: McGraw-Hill Taneja, N. K. 2002. Driving airline business strategies through emerging technology.

Aldershot: Ashgate Pub. Group. Dart, C. n.d. eBusiness - The Second Wave - Publications - Management Portal. [online] Available at: http://www.themanager.org/resources/eBusiness.htm [Accessed: 19 Feb 2014]. Griffin, R. W. (2010) Management Available Titles Coursemate, Cengage Learning. Doganis, R. 2001. The airline business in the twenty-first century. London: Routledge. Sunhilde, C, & Hajnalka, K 2011, Electronic Commerce - a Modern Form of Business, Journal Of Electrical & Electronics Engineering, 4, 1, pp.

35-38, Academic Search Premier, EBSCOhost, viewed 25 February 2014. Airlineworld.wordpress.com. 2008, Ryanairs New Booking Engine - Now What ?. [online] Available at: https://airlineworld.wordpress.com/category/e-commerce/ [Accessed: 25 Feb 2014].