Business Model Used by the US Airways Company - Case Study Example

Name Course Tutor Date Introduction This essay involves choosing one airline organization. There are three most important tasks. The first one is the critical assessment of how e-business technologies have altered the nature of competition within this industry. The second one is the critical assessment of opportunities and threats that are posed by the internet to the company. The third is the critical assessment of how the organization has employed e-business technologies to perform its key business processes as well as improve service levels for all of its customers. E-business technologies E-business is also referred to as internet business. It compounds the application of information as well as communication technologies. . This is in support of all business activities. E-business focuses majorly on the usage of information and technology in order to enable all external relationships and activities of business with other businesses, groups and individuals. E-business refers to high focus with more emphasis on all functions that occur with the use of electronic capabilities. It involves all business processes that span an entire value chain, supply chain management and electronic purchasing. This is where there are technical standards that facilitate data exchange between several companies. E-business software solutions on the other hand allow for the interaction of inter and intra business processes (Stewart, 2011). All e-businesses can be conducted by the use of the internet, the web, extranets, intranets or a combination of all these. When this organization went online it made decisions on the e-business models that best suited their goals. A business model refers to the organization of a certain product, information flows and services. It also involves the source of benefits and revenues for both customers and suppliers. The concept of an e-business model is the same the only difference is the usage in its presence online. Online shopping The first one is on online shopping. It is also referred to as online retailing. It is an electronic commerce form that allows travelers and tourists to directly purchase either goods or services from sellers over the internet without any intermediary service. Online shops show form of e-business taking place. There is the availability of various e-commodities. These include e-store, e-shop, web-shop, online store, virtual store or internet shop. This process is referred to as business to consumer online shopping. Whenever a business buys from any other business it is often referred to as business to business online shopping. Any large online retailing corporation includes Amazon.com and E-bay. These two are based majorly in the USA (Lopperi, 2011). USA airways Literature The US Airways Board of Directors always believes in the sense of good corporate citizenship. This is in the best interest of the organization since it has helped in ensuring the airline’s viability over a long period of time. Through community relations activities, there are various contributions towards the social and economic well being of various stakeholders. These include shareholders, employees, passengers as well as communities in which the airline operates within (Stewart, 2011). Business model used by US Airways Company A business model is a method of doing business in a manner that ensures that the company sustains itself. This is in other words the generation of revenue. Any business models spells out the ways in which the company can sustain itself, make money as well as develop financially. The main applicable model is the advertising model (Lord, 2012). This web advertising model is a high extension of the traditional media broadcasting model. In this case US Airways opened a website that assists in the provision of content that people can search. There are available services like blogs, IM and email. All these mixed together with advertising messages can be put in banner ads. Advertising models can work best mainly where volumes of viewer traffic are large or specialized highly. Under the advertising model there is portal which acts as a search engine. This search engine can include varied services or content. Higher volumes of user traffic on most occasions indicate advertising that is profitable. It also permits diversification of all site services. Personalized portals on most occasions allow customization of interface as well as the user content. Niche portal in US Airways cultivates well defines users’ demographic. The second aspect is on classifieds. This involves listing all types of flights available as well as all types of offers available especially during festive seasons (Lord, 2012). Analysis Throughout the entire commerce history, there have been several charging on different prices. Airlines, buses, trains as well as amusement parks engaged in forms of price discrimination whereby there was an offer of discounts for students, children or other senior citizens. The airline industry is the best example or rather illustration of the evolvement of e-business technologies from as far as 1970. Before deregulation of 1970s as well as 1980s, Virginia airline had been marked by a complex as well as intricate set or regulations and rules that always limited competition. There was the control of prices. The airline’s industry responded well to intense competition and in turn brought forward the idea of incorporating e-business technologies. Not only can airlines currently make reservations online but it has also been viewed as a form of electronically distributed goods. They share same flexibility that is found in e-business (Turner, 2005). The introduction of new technologies has enabled the sophistication of price models that present technological revolution. There has also been an enhancement of future possibilities of revenue management. Technology has greatly played a role in pricing as well as marketing practices. Online dynamic pricing has also been made possible mainly due to high advances in technology. E-business as well as the internet has spawned as well as provided retailers with so much ability to help in the transformation of list prices easily and quickly. This new technology has also allowed all online companies to gather as well as analyze all customers’ information at unparalleled paces. Technology has also enabled this airline organization to customize marketing as well as pricing in a fit to manage particular market segments. Relationships between consumers and retailers are often a one way street in cyberspace. There is a high amount of interactivity in all purchasing transactions (Lord, 2012). Customer satisfaction The safety as well as satisfaction of all customers is the top priority of this airline. Customers first are the main result of joint efforts of airline industries, USA department of transportation and USA congress. This is in a main bid to address all key elements that affect the customers. For the past many years, USA airways Group Inc. have greatly pumped new resources, technology and money into improving customer service records. All these efforts have bore great fruits. This Tempe based airline has improved its timely performance, provided better services and lost fewer bags mainly at the carrier section. This is for example in the troubled Philadelphia region. This airway has the best performance in terms of customer satisfaction. It has seen baggage complaints drop from close to 2.86 percent for close to 1000 passengers (Lopperi, 2011). According to the USA department of transportation in 2009 the month of June, there was a 2.53 percent drop. For the first half of 2010, US Airway saw better numbers with a showoff of 2.71 and 3.21 later on in the year. US Airways vice president Kerry Hester is also the vice president for customer service planning. He said that the carrier aids in improving outdated technology that is related to baggage handling and gate boarding. It also institutes top to bottom commitments in order to improve service. Before the development of this e-business specialty, the airline was lagging behind in terms of technology. In addition to this new technology for tracking baggage and gate agents, US Airways’ customers’ service efforts include auditing of all customers’ airport experiences as well as two years focus on performances in the company. The airline has also created $20 million investment in Philadelphia (Lopperi, 2011). Staffing in Philadelphia includes operations, senior cargo, customer services, public relations staff, executives and human resources. This is on the ground next to Pennsylvania airport that also serves as the US Airways major international gateway. A very important model that applies in US Airways Company is telecommunication. It applies as a model since it has technology based settings that enable running the airline to success. A communication network refers to any collection of receivers, transmitters as well as communication channels used in sending messages to one another. Other digital communication networks contain routers that often work in unison in order to transmit information to a correct user. Analog communications network has switches that always establish connections between many users. For both networks repeaters often amplify or recreate signals that are used in establishing or rather transmission over longer distances. This occurs in order to combat what is referred to as attenuation. This renders signals as indistinguishable from any form of noise. Another important advantage of any digital systems over any analog systems and the reason why US Airways has stuck to digital is the fact that the output is much easier to store in memory. This means that both high and low voltages are easy to store more than continuous ranges of states (Lord, 2012). In terms of security this airline has highly been assisted by technology to ensure that all their efforts in securing passengers and the organizations are well in place. Thanks to the internet, US Airways cannot in any way disclose any customers’ personal information to any third party. This is only except whenever there is compelling to do so by for example a government authority or the law. It can also share out such information to any public health emergency incase of any health emergency. It has always taken appropriate means to ensure that there is proper safeguarding of customer personal information that always includes call commercially reasonable steps in establishing secure connections with all customers in order to ensure web privacy. The internet can pose huge threats to the airline as well as to the customers in general. The airways therefore offer the customers with the option to ensure there are personalization as well as an improvement of their online experience. This is by the improvement of their online experiences. This is possible by the creation of user profiles that are in connection with Dividend Miles Account. Customers are not however required to come up with a profile in order to purchase tickets. Profiles are required to access all specific areas of the entire website (HUDSON, 2011). The provisions of schedules special offers or emails and newsletters from all marketing partners are possible. This is because the customers are always required to provide information for example the name, the address and the email address. The US Airways’ web servers use various technologies including the web beacon to understand the promotions that are of huge interest to people. All these technologies can be used on various pages as well as on websites. They allow people to tailor all the content that has been presented forward in emails and online (Hsu, 2009). All the web beacons on most occasions work with cookies. If someone does not want any cookie information then one can visit the pages in the browser and turn off all the cookies. Turning off all the cookies will enable detecting of any anonymous visit. This privacy policy is however subject to changing any time. If US Airways requires making any significant changes to this policy then there is always a release of a statement that notifies all the customers on the change that will come up in 21 days. References Hsu, S. H. (2009). 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