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Company Profiles - EasyJet.

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Introduction

Due to the immense diversity of the Internet, different companies have adopted varying strategies that they believe will best suit their needs. These vary from heavy advertising driven strategies to direct online sales and e-commerce selling their products direct from their websites. The airline industry is well suited to develop business on the Internet due to the versatility of their 'product'. The industry does not rely on 'hands-on' experience of the product, or even require consumers to 'see' the product before they buy. For these reasons selling airline tickets online has been an extremely profitable development for the majority of airlines. One major benefit from selling online is that companies can sell directly rather than having to pass through the traditional travel agency networks that used to dominate the sales for aeroplane tickets, charging commission on each one sold which invariably would add to the cost for the consumer. The Internet also allows for sales to take place 24 hours a day, 365 days a year to cater for people ordering flights at any time and, with the Internet's global reach, from anywhere around the world. Consumers have benefited from rapid growth of the airline industry over the past couple of decades as more and more companies found the market to be profitable and the increased competition forced prices down to more affordable levels. The current trend toward global business has also increased the necessity for fast and easy transportation over large distances and so the industry has received an extremely beneficial injection from the business sector. ...read more.

Middle

Advertising is easy to achieve through a well-developed Internet strategy and can provide a potential target base larger than any other form of advertising. EasyJet appear to be very conscious of this fact and make good use of their corporate colour (luminous orange) to make their website hard to miss. While BA's website appears to be distinctly corporate and provide a front-end anyone searching for information on the company, EasyJet and Ryanair take the approach of advertising their services to the maximum potential. This can be seen by their constant display of cheap and extra-budget fares displayed prominently on the sites. So far only a small number of the aspects of the value chain have been examined. Other aspects that can benefit from use of Internet resources are diverse. Due to the nature of the internet there would be minimal needs for the company to have multiple IT centres, instead there can be one prime centre with all other satellite centres connected to it. This introduces cost savings on IT infrastructure as well as improving manageability of the systems. The added value to the corporation is also impressive because careful and creative planning of the IT resources allows a company's infrastructure to make full use of the plentiful resources afforded by the Internet such as e-mail and access to information and knowledge bases. In this respect the younger companies are at an advantage in comparison to older companies such as BA. ...read more.

Conclusion

CONCLUSION The use of Internet technologies has enabled companies such as Ryanair and EasyJet to substantially increase sales and growth rates to such a degree that they are now serious competitors to the older, larger airlines. This is illustrated in the current losses that BA is suffering which they clearly attribute to the low-cost market which they hoped to dispose of by launching their own low-cost airline, GO, which struggled badly and was put up for sale. BA attempted to 'bully' Ryanair by suing them for illegal advertising - claiming that BA was 5 times more expensive when in reality it was 3 times more expensive! BA lost the lawsuit as the High Court ruled they were in fact expensive6. EasyJet has faced similar problems from Swissair as they forced EasyJet to move their Swiss base from Zurich to Geneva and refused to allow them to fly to Spain. In reply EasyJet founded EasyTours, a charter company which uses EasyJet to fly to Spain where you are provided accommodation in a tent for no extra charge. These companies could not have achieved the positions they currently possess without extensive use of Internet technologies and this demonstrates clearly how important and useful they can be. It has now become very rare to find an airline that does not have direct online sales as most companies have realised the competitive necessity that the Internet provides. Internet technologies can be extremely powerful tools if used in a competitive fashion to streamline communications and improve sales and marketing for a company. ...read more.

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