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

1. Airline Sector
E-Business and Applications
Section “A”
Presented to Sir Manoj Kumar
Presented By:
M.Shaharyar Saeed

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. The 7C’s Framework

15. Context

16. Content

17. Community

18. Customization

19. Communication

20. Connection

21. Commerce

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. 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. 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. 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. Thank You!