E-Buniess PPT on Airline Sector with 7Cs


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It is about the implementation of 7Cs in Airline Sector's Website. This is the comparision of PIA and British Airways.

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E-Buniess PPT on Airline Sector with 7Cs

  1. 1. Airline Sector E-Business and Applications Section “A” Presented to Sir Manoj Kumar Presented By: M.Shaharyar Saeed
  2. 2. Introduction • Pakistan International Airline: The national flag carrier and a state-owned enterprise of Government of Pakistan.Once regarded as Asia's best airline,it is headquartered at Jinnah International Airport in Karachi and operates scheduled services to 24 domestic destinations and 38 international destinations in 27 countries across Asia, Europe and North America.Its main bases are at Karachi, Lahore and Islamabad/Rawalpindi.
  3. 3. Introduction • British Airways (BA) is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. It is the largest airline in the UK based on fleet size, international flights and international destinations and second largest measured by passengers carried, behind easy Jet.
  4. 4. Benefits of Information Systems to These Airlines • Convenience to Customers Reservation System, Request hotels, car. • Knowledge of Customers Frequent-Flyer Program: A Advantage. • Providing a Foundation for Other Systems Yield-Management System. • Building a Base for Other Businesses Designed systems for others.
  5. 5. Market Segmentation • Demographic Segmentation: These airlines is targeting the income and occupation oriented people. The classification of both categories is as follow; • Income Segmentation From income segmentation, those who falls under the category of upper class and upper middle class. • Occupation Segmentation From occupation Segmentation that Airlines is taking in to account, there are two main subheads of working class and business class. The working class includes all those who are working as an employee inside and outside the country. In business class all those people are included who are having business.
  6. 6. Continue… • Tourists • Religious Travel • Social class • Loyalty Status • Geographic Segmentation: All the audience from the domestic and international regions are included. In domestic people within the country are included and people residing outside. • Behavioral Segmentation: In behavioral segmentation both airlines are working well and their according to different religion or occasion like EID, Christmas, Diwali, Easter and etc…
  7. 7. Porter Competitive Model Intra-Industry Rivalry SBU: PIA and British Rivals: Air Blue, Virgin and all domestic Bargaining Power of Buyers Bargaining Power of Suppliers Substitute Products and Services Potential New Entrants Airline Industry Analysis - North American Market •Travel Agents •Business Travelers •Federal Government •Pleasure Travelers •Charter Service •Military •Cargo and Mail •Alternate Travel Services •Fast Trains •Boats •Private Transportation •Videoconferencing •Groupware •Aircraft Manufacturers •Aircraft Leasing Companies •Labor Unions •Food Service Companies •Fuel Companies •Airports •Local Transportation Service •FAA •Hotels •Foreign Carriers •Regional Carrier Start ups •Cargo Carrier Business Strategy Change
  8. 8. Europe Middle East Pacific Rim MARKETS Short Haul Long Haul ROUTES AND ROUTE STRUCTURE Hub and Spoke Point to Point FARE STRATEGY Low Fare Premium Fare Independent Alliances COMPANY STRUCTURE INFORMATION SYSTEMS FOCUS Figure 4-1 Latin American Business Strategy Model - Airline Industry Passengers Operations Logistics Business PRODUCT/SERVICES Scheduled Passengers Charter Services Cargo Mail Air Express Modified compared to the example in the textbook.
  9. 9. Benefits of Information Systems to American Airlines • Convenience to Customers • Reservation System, Request hotels, car. • Knowledge of Customers • Frequent-Flyer Program: AAdvantage. • Providing a Foundation for Other Systems • Yield-Management System. • Building a Base for Other Businesses • American designed systems for others.
  10. 10. Airline Industry Value Chain INBOUND LOGISTICS OPERATIONS OUTBOUND LOGISTICS MARKETING AND SALES SERVICE PROCUREMENT TECHNOLOGY DEVELOPMENT HUMAN RESOURCE MANAGEMENT FIRM INFRASTRUCTURE Adapted with the permission of Michael E. Porter from Competitive Advantage: Creating and Sustaining Superior Performance, copyright 1985 by Michael E. Porter. -Financial Policy - Accounting-Regulatory Compliance- Legal - Community Affairs Pilot Training Safety Training Agent Training In-flight Training Baggage Tracking System •Promotion •Advertising •Advantage Program •Travel Agent Programs •Group Sales •Ticket Counter Operations •Gate Operations •Aircraft Operations •On-board Service •Baggage Handling •Ticket Offices •Route Selection •Passenger Service System •Yield Management System (Pricing) •Fuel •Flight Scheduling •Crew Scheduling •Facilities Planning •Aircraft Acquisition Information Technology Communications Product Development Market Research •Lost Baggage Service •Complaint Follow-up •Baggage System •Flight Connections •Rental Car and Hotel Reservation System Computer Reservation System, In-flight System Flight Scheduling System, Yield Management System Baggage Handling Training Flight, route and yield analyst training Figure 4-3
  11. 11. Value Chain in Airline Sector • Primary activities Activities which are directly involved in delivering service of Airlines are as follows • Logistics Airline has a huge system of cargo system which delivers luggage to different destinations. • Operations Operations can be one of the important parts of value chain where the smooth running of the business is very important. Starting from the men on the runway to the people In control room, everything has to be properly controlled and organized. Head of operations plays very important role in this part of value chain.
  12. 12. Continue… • Customer Service This is the most important part in the whole value chain. Customer service is the only factors which matters in service industry. The better the customer service, more will be the passenger flying . it also boosts up the motivation among employees. • Secondary Activities The activity that even though are not involved directly in the operations, could increase the effectiveness or the efficiency of service delivered are as follows • Human Resource Management Human resource management is where all employees data are kept. The hiring and firing , employee motivation, performance appraisals and other related issues are dealt .
  13. 13. Continue… • Marketing and sales Sales and marketing is a key factor in brining the success of Airlines. • Technology As preceding discussed is one of these Pakistani businesses that do not execute strict and converged R&D departments therefore technology is less than the worries for these Airlines.
  14. 14. The 7C’s Framework
  15. 15. Context
  16. 16. Content
  17. 17. Community
  18. 18. Customization
  19. 19. Communication
  20. 20. Connection
  21. 21. Commerce
  22. 22. 0% 20% 40% 60% Source: PhoCusWright, Inc., Sherman, CT USA, 2001 Price Reliability Service Ease of Use Which is the Most Important? The Online Traveler
  23. 23. Source: PhoCusWright, Inc., Sherman, CT USA, 2001 Who has the Best Price? 0% 10% 20% 30% 40% 50% 60% Trad. Agencies Online Agencies Travel Suppliers Buyers Non-buyers The Online Traveler
  24. 24. Best Airlines for Business Travelers 1. Etihad Airways 2. Swiss Air 3. Cathay Pacific 4. Midwest Express ** 5. Singapore Airlines 6. Quantas 7. Virgin Atlantic 8. Lufthansa 9. Emirates Airlines 10. Japan Airlines 11. Finnair 12. British Airways 13. Alaska 14. Air France 15. Varig 16. Aer Lingus 17. Kiwi 18. Air Canada 19. American ** 20. Delta**
  25. 25. Airline Industry Conclusions • It is a vivid example of the dynamics of the markets that it serves. • Establishing strategies dictated by the market is critical. • Once the right strategies have been identified, information systems can play an important supporting role.
  26. 26. Thank You!