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E-Commerce Business Strategy - Essay Example

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British Airways is one of the largest international carriers in the world. They fly to over 550 destinations across the world. British Airways Plc consists of the flagship company with a number of their subsidiaries as well. BA which was in a major financial strait about five years back has come out of it and recorded a huge profit making it the largest profit making airline in the world…
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E-Commerce Business Strategy
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Download file to see previous pages Every airline had travel agents sitting all over the world and they need to know when tickets are available and what the fares are. In order to ensure that this happens a network of systems on a copper wire cabling was done and the fare rates were brought to the desk tops of travel agents. The airline that had the higher reach won the market to larger extent.
In the 1980s, it was the question of retaining the customer loyalty. The focus was slowly turning towards customers and the facilities that they could possibly get. Every airline started working out a frequent flyer program. So did British Airways as well. Better programs added up to the charm of the airline and thus made a marked difference to the number of customers the airline could rope in and hence, the profitability as well.
Now, the loyalty programs or distribution alone are not the issues since most of the airlines offer all these. However, now it is customer friendliness or customer driven or customer enabled airline that is deciding on the operational comfort of the customer. This leads to enabling an higher and a better satisfaction among customers. This was identified by the airline and then a clear strategy to capitalize on this was done. The customer wanted to save as much time as he could before starting on his journey. He wanted to save as much Pounds as he could when he books his tickets. It is now two pronged. One, he needs to save time and two, he needs to save on cost. If the airline could provide both then that airline could be the winning one. This opportunity was identified and had to be capitalized on.
3. Business model adopted by the company
The company decided to capitalize on it and work out a business model that would enable the company to make full use of this opportunity. It was decided to work out the methodology that will make the company a customer enabled airline. The customer should be able to do what he wants at the place he wants at the time he wants. This would essentially mean an anytime anywhere computing or support.
The business model evolved also has to take care of the cost factor. To what extent can the cost of air travel be reduced Will the companies in the airline business ready to forego their profitability It has been repeatedly proven that there is no profit by reducing the price of a product in the market particularly when the company is trying to reduce its profitability. Price can be reduced when there is a major cost cutting. In order to reduce the price on the tickets, the company has to first reduce the cost of operation at the office. This would help in reducing the cost of the tickets to the customer. Strategy two will be to save cost and thereby offer customer a better deal.
This two pronged approach line was drawn. Based on this approach ...Download file to see next pagesRead More
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