Advantages and Disadvantages of e-commerce in terms of easyjet

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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.

Advantages and Disadvantages of e-commerce

E-commerce is economical. Unlike the brick and mortar environment, in e-commerce there is no physical store space. However a well-designed website can be beneficial to attract and reach our cyber-customers.

The impact of e-commerce

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.

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Effects of e-commerce

E-commerce has many effects on the market, for both the customer and the business itself. Here are some of the effects that e-commerce has on easyJet -

Effects on pricing in global digital markets

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 ...

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