Advantages and Disadvantages of e-commerce in terms of easyjet Essay.
In this report, I am going to investigate business and economics in selected businesses. In this fourth task my learning outcome is as follows – easyJet is Europe’s leading low-cost airline. The airline was founded by Stelios Haji-Ioannou. It launched in November 1995 from its base in Luton offering two routes to Glasgow and Edinburgh, served by two Boeing 737 aircraft. EasyJet have now gone on to offer 89 routes from 36 European airports, operating 64 aircrafts in November 2002. The easyJet brand is strongly associated with its simple, ‘no frills’ service.
This is targeted at both the leisure and business markets. The first easyJet flight was in November 1995, departing from Luton airport for Glasgow. However it was noticed as a pioneer in the e-commerce trade when the firm sold its first seat online in April 1998. E-commerce is used everywhere in everyday life. It brings the universal access of the Internet to the core business processes of buying and selling goods and services. It helps generate demand for products and services and improves order management, payment, and other support functions.
The overall goal is to cut expenses by reducing costs. The Internets worldwide reach helps businesses discover new markets while increasing the speed of access. The internet and the use of e-commerce is the biggest thing in recent years to change the way that customers interact with the suppliers and sellers. The internet has revolutionised the way that people shop, and therefore it has become essential that all businesses implement an aspect of e-commerce within their business.
easyJet were the first airline company to allow their customers to buy tickets to flights online. And since the first ticket was sold they have kept to their roots and as statistics stand now, 95% of sales come wholly from the internet with just 5% coming from call centres. This cuts out the middle man essentially and prevents the need for easyjet to open stores all around the UK to sell their tickets. E-commerce allows easyJet to make significant cost savings.
The business is cheap to set up in comparison to opening a high street travel agent style store. The premises costs are minimal, as are those for fixtures and fittings. Staff costs can also be reduced as the firm needs fewer sales staff and less administrative support. These savings can allow the firm to offer cheaper prices, and this in turn should boost sales. The Internet allows companies to quickly revise the pricing of products offered if circumstances change.
For example if easyJet had a travel brochure labelling their prices then it would be costly and uneconomical to reprint everytime prices need to be changed, but in terms of a website, the prices can be quickly and cheaply updated. Companies can therefore be very responsive to market changes. E-commerce provides companies and other organisations the chance to offer services to a much wider target market. This includes not only people who live in remote rural places and in other countries, but also those who have mobility problems such as elderly or housebound people.
Via the Internet, such people can find out about the services that may help them much more easily and can also place orders without leaving their homes. For example Tesco offer a home delivery service which allows people throughout the UK to do their shopping online and get it delivered to your door on a specified date and for a small charge. This enables people that may be too unwell to get to a shop or are unable to go shopping, to order their food and necessities simply and easily.
This not only allows people to order their food easily but allows Tesco to reach a wider audience because people that may not usually shop at Tesco may now do so because of the convenience it offers. The Internet also makes it much easier for customers and companies to compare prices and specifications of products before they buy, which is clearly a better level of service. However, this could also prove disadvantageous to firms if they do not compare well with their competitors. In terms of easyJet they are the pioneer of this particular market and currently offer flights from just i?? 17. 99