Advantages and Disadvantages of E-Commerce

In this report, I am going to examine organisation and economics in selected services. In this 4th job my learning outcome is as follows - easyJet is Europe's leading affordable airline company. The airline was established by Stelios Haji-Ioannou. It launched in November 1995 from its base in Luton using 2 routes to Glasgow and Edinburgh, served by 2 Boeing 737 aircraft. EasyJet have actually now gone on to use 89 paths from 36 European airports, running 64 airplanes in November 2002. The easyJet brand is strongly related to its simple, 'no frills' service.

This is targeted at both the leisure and business markets. The first easyJet flight remained in November 1995, departing from Luton airport for Glasgow. Nevertheless it was seen as a pioneer in the e-commerce trade when the firm sold its first seat online in April 1998. E-commerce is utilized all over in everyday life. It brings the universal gain access to of the Web to the core organisation processes of buying and offering items and services. It assists generate demand for product or services and enhances order management, payment, and other assistance functions.

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The general goal is to cut expenditures by decreasing costs. The Internets worldwide reach helps companies find new markets while increasing the speed of access. The internet and using e-commerce is the biggest thing over the last few years to alter the way that consumers engage with the providers and sellers. The internet has actually changed the manner in which people shop, and for that reason it has become essential that all companies carry out an element of e-commerce within their business.

easyJet were the very first airline business to permit their clients to buy tickets to flights online. And since the first ticket was sold they have actually kept to their roots and as stats stand now, 95% of sales come entirely from the internet with simply 5% coming from call centres. This eliminates the middle man essentially and prevents the need for easyjet to open stores all around the UK to offer their tickets. E-commerce enables easyJet to make considerable expense 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 firm to offer cheaper prices, and this in turn should boost sales. The Internet allows companies to quickly revise the pricing of products offered if circumstances change.

For example if easyJet had a travel brochure labelling their prices then it would be costly and uneconomical to reprint everytime prices need to be changed, but in terms of a website, the prices can be quickly and cheaply updated. Companies can therefore be very responsive to market changes. E-commerce provides companies and other organisations the chance to offer services to a much wider target market. This includes not only people who live in remote rural places and in other countries, but also those who have mobility problems such as elderly or housebound people.

Via the Internet, such people can find out about the services that may help them much more easily and can also place orders without leaving their homes. For example Tesco offer a home delivery service which allows people throughout the UK to do their shopping online and get it delivered to your door on a specified date and for a small charge. This enables people that may be too unwell to get to a shop or are unable to go shopping, to order their food and necessities simply and easily.

This not only allows people to order their food easily but allows Tesco to reach a wider audience because people that may not usually shop at Tesco may now do so because of the convenience it offers. The Internet also makes it much easier for customers and companies to compare prices and specifications of products before they buy, which is clearly a better level of service. 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 i?? 17. 99