Midterm Question # 2

1. Research a Philippine company and international company that have employed e-commerce

Answer:
Philippine Airlines



Amadeus Air China's



2. Describe how e-commerce operate in this companies

Answer:

Philippine Airlines -PAL is using the e-commerce for them to provide the services of the company, by using e-commerce the customers can easily access through internet.


Amadeus Air China's - Amadeus is the chosen technology partner for providers, sellers, and buyers of travel. The company provides distribution, IT and point-of-sale solutions to help its customers adapt, grow and succeed in the fast changing travel industry. Customer groups include travel providers (airlines, hotels, car rental companies, railway companies, ferry lines, cruise lines, insurance companies and tour operators), travel sellers (travel agencies) and travel buyers (corporations and travelers). Solutions are grouped in four solution categories - Distribution & Content, Sales & e-Commerce, Business Management and Services & Consulting.

Amadeus has central sites in Madrid (corporate headquarters & marketing), Nice (development) and Erding (Operations - data processing centre) and regional offices in Miami, Buenos Aires and Bangkok. Amadeus maintains customer operations in 76 countries covering more than 215 markets. Amadeus employs over 7,800 employees worldwide, representing 95 nationalities.


3. identify the benefits constrains derive by this companies from e-commerce

Answer:

Basic Benefits of eBusiness eCommerce
o increase sales - this is the first thing that people consider
when dealing w e-commerce
o decreasing costs
o increase profits
o understanding that profits is not the same as sales
o Expands the size of the market from regional to national or national to international
o Contract the market
o reach a narrow market
o target market segmentation allows you to focus on a more
select group of customers
o and therefore have a competitive advantages in satisfying them

Decreasing costs
o costs of creating the product
o marketing
o of promotional material
o costs of distribution
eg. Netscape allowing you to download instead of waiting to get the CD by mail
o costs of processing (orders from the customers)
repeat activities and information processing
of handling customer phone calls
of handling sales inquiries
determine product availability (inventory management)
o costs of storing information
o lowers telecommunication costs

Provide price quotes
- with a web site, you can have the prices listed, and change them
- you simply edit the web page
- in a printed catalogue you are stuck with the expense of printing a new version if you need to change many of the prices'


Constrain of E-commerce

Catalog Inflexibility

The catalog needs to regenerate every time when there are some new information or items to add in.
High Marketing / Advertising Expenses

Reduced marketing/advertising expenses, compete on equal footing with much bigger companies; easily compete on quality, price, and availability
Limited Market Place

Normally, customer will only locally and limited to certain area.
High Sale Cycle

Usually, a lot of phone calls and mailings are needed.
Higher Cost of Doing Business

Cost regarding inventory, employees, purchasing costs, and order-processing costs associated with faxing, phone calls, and data entry, and even physical stores. Subsequently, increase transaction costs.
May Require A Middlemen

Some sales or transaction may taking part indirectly or gone through third party to your customers.
Inefficient Business Administration

Store inventory levels, shipping and receiving logs, and other business administration tasks might need to be categorized and updated manually in and done only when have time. This cause the information might not the latest or updated.
Need to employ number of staff

Need staff who gives customer service and sales support

References:


2. http://www.ask.com/bar?q=international+airline+that+uses+e-commerce&page=1&qsrc=2417&ab=5&u=http%3A%2F%2Fwww.travelindustrywire.com%2Farticle33376.html
3.http://www.isos.com.my/ecommerce/disadvantages.htm
http://www.witiger.com/ecommerce/benefits-limitations.htm


DIPAY, IVY MAE