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Advantages and Disadvantages of e-commerce in terms of easyjet

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Introduction

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 Disadvantages The ability to reach a wider market Staff- technical staff are an expensive resource The ability to find information on competitors and to compete with larger businesses on an equal basis Building a customer base is expensive Lower operating costs Distribution- it is ...read more.

Middle

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 �17.99 Gathering Information As we have already seen, a website offers a good opportunity for gathering information about customers' buying habits, which can inform promotions, but it also offers the opportunity for customers to give direct feedback about products and services through e-mail. These can prove to be valuable information sources, which is why so many firms include them on their sites. This primary research can then be use to model things such as new products or revising prices and is a much cheaper way of researching the market. If easyJet were a high street store they would have to pay to carry out the same research in the form of printed questionnaires and posted surveys. easyJet offer their customers an online complaints system which allows them to complain direct to easyJet simply through the website. This allows easyJet to put right some of the things that are causing passengers distress to ensure that they run a successful business where all passengers are pleased and want to return. Global Demographics Webographics examines trends in the use of e-commerce and e-business, for example how many people are using the Internet to buy goods and services, and the trends in value of those transactions. ...read more.

Conclusion

E-commerce is used for convenience where traditional retail is often used as a social activity and a form of entertainment. In my opinion the e-commerce revolution will continue to grow but brick and mortar will also remain. Having said this though, there are some exceptions. In terms of easyJet who started out in the e-commerce business, never having traded on high streets, I would not recommend them change the way they operate and stick to the internet trading that has seen them become a pioneer in the market and revolutionise the way that people fly. Once a business has found a trading model that works for them, they should stick to it whilst still being aware of changing markets that could one day force them to change. E-commerce has proved to be successful for easyJet. They were a pioneer in the online air operator. They have spent a lot of time achieving their aims and objectives which has resulted in a totally ticket-less booking system which has improved efficiency and costs and also made the whole process easier for the customer. The use of e-commerce is the reason why easyJet is so successful, without it they would find it hard to break into the already crowded market. But by having the initiative to offer the customer that they couldn't currently get from any other operator, it allowed them to break into the market and gain a share of the market. ?? ?? ?? ?? 1 Martyn Fox Task 4 Business & Markets ...read more.

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