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E-commerce Essay Example

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Flag carriers like British Airways, KLM, Cathay Pacific, Qantas, American Airlines and Singapore Airlines responded by installing e-commerce platforms as the robust channel for business.The Paris Crash in 2000 and the 9/11 terrorist attacks the following year, coupled by fluctuating maintenance costs, and the future of Concorde was limited despite the expensive modifications after the crash. BBC1 related that experts used passenger figures and other published data to forecast the airline’s 2002 full-year result and put up with the likely pre-tax loss in between £300m and £400m. Projecting profits and sales compared to losses was neither an exact science as recognised by Corts2 but given the strong evidence of bankruptcies in Europe and the US, plunging passenger numbers, and a steady switch away from traditional carriers to low-cost airlines that ceased the scheduled services with Concorde that BA had took investments on has featured the climactic down side3.Realizing that aviation was still by far a revenue problem despite a century after its start, the management team developed ways to maintain its balance rather than forever closing its doors as the flag carrier by cutting jobs, overtime reductions, management revamps, leave extension schemes just to save off on the numbers4. Long term options of taking the business around proved more feasible in 2002 when the firm finally announce the ‘Future Size and Shape’ plan, which aimed to cut annual costs by £650m and removed an additional 5,800 jobs on top of the 7,200 the firm had already announced5. Calculated business risks allowed BA to switch to online calendar-led selling to reduce the cost of sales and expenditures given to travel agents that allowed them to compete with other airlines IT system. Soon these E-commerce and Business to Business moves were a favorable and practical cost structuring that ultimately led to lower equilibrium price levels in a long-run equilibrium by decreasing the underlying costs on which any price premiums are based according to Milgrom and Roberts (1982)6.By the turn of the century, E-commerce has become a vast media that demanded a deeper understanding for corporations to capitalize on this free technology. BA upon its corporate restructuring put up their BA.com web site at the centre of nearly every

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preview essay on E-commerce
  • Pages: 10 (2500 words)
  • Document Type: Essay
  • Subject: Unsorted
  • Level: Ph.D.
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