e-buniess ppt on airline sector with 7cs
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Airline SectorE-Business and Applications
Section “A”Presented to Sir Manoj Kumar
Presented By:M.Shaharyar Saeed
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.
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.
Benefits of Information Systems to These Airlines• Convenience to Customers
Reservation System, Request hotels, car.
• Knowledge of CustomersFrequent-Flyer Program: A Advantage.
• Providing a Foundation for Other SystemsYield-Management System.
• Building a Base for Other BusinessesDesigned systems for others.
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.
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…
Porter Competitive Model
Intra-Industry RivalrySBU: PIA and BritishRivals: Air Blue, Virgin and alldomestic
BargainingPower of Buyers
Bargaining Power
of Suppliers
Substitute Products
and Services
PotentialNew 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
Figure 4-2
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/SERVICESScheduled Passengers
Charter Services Cargo
Mail Air Express
Modified compared to the example in the textbook.
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.
Airline Industry Value Chain
INBOUNDLOGISTICS
OPERATIONS OUTBOUNDLOGISTICS
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 TrainingSafety 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 TechnologyCommunications
Product DevelopmentMarket Research
•Lost Baggage Service•Complaint Follow-up
•Baggage System•Flight Connections•Rental Car and Hotel Reservation System
Computer Reservation System, In-flight SystemFlight Scheduling System, Yield Management System
Baggage HandlingTraining
Flight, route andyield analysttraining
Figure 4-3
Value Chain in Airline Sector
• Primary activitiesActivities which are directly involved in delivering service of Airlines
areas follows
• LogisticsAirline has a huge system of cargo system which delivers luggage to
different destinations.
• OperationsOperations 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.
Continue…• Customer ServiceThis 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 ActivitiesThe 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 ManagementHuman resource management is where all employees data are
kept. The hiring and firing , employee motivation, performance appraisals and other related issues are dealt .
Continue…
• Marketing and salesSales and marketing is a key factor in brining the success of
Airlines.
• TechnologyAs 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.
The 7C’s Framework
Context
Content
Community
Customization
Communication
Connection
Commerce
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
Source: PhoCusWright, Inc., Sherman, CT USA, 2001
Who has the Best Price?
0%
10%
20%
30%
40%
50%
60%
Trad. Agencies OnlineAgencies
TravelSuppliers
Buyers
Non-buyers
The Online Traveler
Best Airlines for Business Travelers
1. Etihad Airways2. Swiss Air3. Cathay Pacific4. Midwest Express **5. Singapore Airlines6. Quantas7. Virgin Atlantic8. Lufthansa9. Emirates Airlines10. 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**
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.
Thank You!
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