The objective of this report is to present the case study of e-commerce that related to the airline industry especially low cost carrier. The specified airline to be focused in this discussion is AirAsia. Mr. Tony Fernandes who had bought over AirAsia with the company value of so called “one dollar RM” established AirAsia in 2001. At that time, he expected AirAsia to carry nearly twenty millions passengers within the next five years. The company strategy is to provide a convenient service to people in order to make travelling using air flight much easier and most important is with affordable fares. The scope of this report will include the following topics:
SWOT analysis on AirAsia focusing on e-commerce application using Porter’s Value chain. 2.
PEST analysis to explain how has e-commerce has given AirAsia its competitive edge. 3.
What is Mobile Commerce (M-Commerce) including the differences between M-commerce and e-commerce. 4.
Explanation on AirAsia’s application of Microsoft Vista can be extended to M-commerce model: benefits to customer and AirAsia. 2.0 What is E-Commerce
E-Commerce or electronic commerce, is defined as an online commerce using electronic media especially Internet or Website. There are many activities in this electronic system such as marketing, selling, buying, distributing and services of products that are all done online. In the airline industry, the online system is very crucial in order to provide convenient services, easy travelling process, real time information, and low airline fare to their passengers. For low cost carriers, e-commerce is very important to reduce their operation cost. E-commerce also serves as a catalyst to boost the airline marketing since the marketing window will be worldwide and less time taken to spread it out. This is the main reason why the AirAsia management uses the “E-commerce” concept for their daily operation. The first concept introduced is Internet booking. Now,...
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