Ryan Air an E-Commerce Organization

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Table of Contents {text:bookmark-start} Definning e-commerce {text:bookmark-end} There are nearly as many definitions of e-commerce as there are contributions to the literature. (Damanpour, 2001) defines e-commerce as “any net business activity that transforms internal and external relationships to create value and exploit market opportunities driven by new rules of connected economy”. E-commerce is a “disruptive” innovation that is radically changing the way organizations do business (Macgregor and Vrazalic, 2007). In other words a organization who do majority of their sales via internet, electronic procurement and electronic payment. As in the given case of RYANAIR AIRLINES. {text:bookmark-start} Ryanair Airlines in brief {text:bookmark-end} In January 2000, Ryanair introduced Europe`s largest travel website-www.ryanair.com. And within three months the site was recording 50000 bookings per week. The website also facilitated car and hotel rentals, rail service and travel insurance. Comparing the bookings profiles of Ryanair with its industry competitor, Aer Lingus,77.9% of booking were done on website whereas Aer Lingus bookings on website was 58.1%. Source: (Nuts Southwest Airlines) {text:bookmark-start} Macro-Environmental Factors {text:bookmark-end} Sociocultural Issues Ryanair`s ratio of passenger per employee was 4035, which compares with Southwest passenger per employee of 2035. A primary factor contributing to Ryanair higher number of passenger per employee is subcontracting of ground handling activities to independent contractors at all airports other then Dublin. Also Ryanair is in the third year of its stock option pragramme where it offers its employees stock options and other rights to purchase ordinary shares. All staff is benefited from extensive travel concessions in Ryanair and discounted travel with other carrier. {text:bookmark-start} Technological Issues {text:bookmark-end} To keep up, the airlines are transforming itself ticketless and via internet, which in turn has brought down the overall distribution cost of the airlines. Built with Java 2 Enterprise Edition using IBM’s Web Sphere development environment, the graphical applications for check-in agents, rolling out by 2007, will replace green-screen technology that requires agents to memorize commands to make changes this will help to drastically reduce check-in, ticketing, baggage, and security modules aim to shorten transaction times at counters and improve usability. Use of an automated production-control system that technicians to spot any technical problem in the operating fleets, already which has resulted in a 10% to 15% reduction in the amount of time planes undergoing scheduled maintenance. Partnering with NBC Weather Plus, the first all-digital broadcast network and premiere online weather property, offering Customers online video forecasts for most of the regions served by the industry. Technology really spans every area of the company. The challenge for every employee and every work group is to be the best in the airline industry, have the best time performance, have the best customer service satisfaction rankings, and have the lowest cost. (Source: Exploring Corporate Strategy, 1999) http://www.foxnews.com {text:bookmark-start} Leadership Characteristic and Leadership Styles {text:bookmark-end} Definition of Leadership: “An activity or set of activities, observable to others that occur in a group, organization or institution involving a leader and followers who willingly subscribe to common purposes and work together to achieve them.”(Professor Kenneth Clark) The Vision of RYANAIR is to be “The lowest fare Airline”. They have a very clear vision and a sense of purpose. They have been paying attention to the needs of the customers and regularly receiving the feedbacks from the customers. They have always been innovating new ideas and doing new things. They have been motivating their employees by giving a three year...
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