The current business environment is usually characterized by a considerable level of competitive rivalry and as a result businesses have to constantly reengineer their inner processes in order to develop a lasting competitive benefit.
This is the situation in the aircarrier industry and as a result Air Asia has to build a sustainable competitive advantage. It can be believed which the installation of the e-commerce software will facilitate the setup of the most essential strategy: making the most of access to information.
This is one of the most essential strengths intended for the company not merely because the business will be able to collect more information about it is customers, although also since the customers can get more information too. As a result, this will likely serve as a marketing tool pertaining to the company. To that end, the company will never be facing any difficulty because the approach is being applied through a partnership with Microsoft.
The air travel industry is characterized by if you are a00 of competitive intensity and therefore Air Asia has to constantly reengineer its internal procedures in order to build and maintain a competitive advantage. In this respect, the strategic focus of the company is usually cost minimization. According to Michael Porter’s framework to get strategy formula, a business corporation has 3 strategies at its disposal in order to build and maintain a competitive advantage.
They are differentiation, expense minimization and focus (cited in Wendy, 2006). Although Air Asia might be considered to be implementing all strategies, it is focus is on reducing costs. The organization is implementing the approach of concentrate by targeting underserved market segments while it is implementing the strategy of differentiation with the help of value-added providers to its repertoire.
However the reasoning lurking behind choosing to consider these tactics has been to discover opportunities for ensuring customer satisfaction through concentrating on areas of the market which have not been targeted by opponents. As a result, Air Asia deals with to impose lower prices than many of their competitors while keeping comparable requirements of top quality.
Mobile commerce is an extension of ecommerce according to which computer systems can be accessed throughout the internet about mobile devices such as PDA, smart phone or a cell phone (cited in Hitt, 2007).
Mobil business has greater flexibility than e-commerce since it has dish connectivity. Because of this, devices that do not effectively have internet connectivity but which have satellite connectivity can easily conduct ventures via m-commerce.
In this respect, it should be mentioned that m-commerce can conduct online video and sound conferencing. Which means application of m-commerce leads to better scope for business-to-business and business-to client exchanges. It has become the essential business model in the modern business environment which is seen as a high level of competitive rivalry.
This means that businesses must focus on the process of expense minimization. This can be facilitated through both e-commerce and m-commerce applications as they facilitate the introduction of B2B and B2C frames. However m-commerce is more hassle-free because of its greater accessibility.
Air flow Asia’s putting on Windows Vis can be extended to m-commerce because Microsoft has already created operating systems to get mobile phones. Consequently Microsoft will probably be in a position to make interoperability between e-commerce and m-commerce throughout the Air Asia gadget. Even though m-commerce can be wirelessly linked, it has the flexibleness of being linked through ecommerce as well.
This means that any alternatives developed pertaining to e-commerce could be accessible through m-commerce. This will benefit the consumers because they will not have to be connected to the internet once the Windows Vista program is made appropriate in the m-commerce platform. In this respect, the costs of conducting web commerce applications are higher than m-commerce applications.
Web commerce requires online connectivity via a pc. With m-commerce the same amount of information can be prepared through a cell phone.
Evolution of e-commerce and m-commerce
M-commerce is carried out through small hand-held products. These devices have got small displays which might make it difficult to get the customers to learn the information. Simultaneously however , these devices are easily transported.
Therefore , through m-commerce, absolutely free themes can be in greater exposure to the source info. Another great advantage of m-commerce is that they use cellular application protocols. Therefore they don’t have connected through wire connections. This enhances the portability of m-commerce applications. However the issue is that the technology involved in the wi-fi application protocol has nonetheless room pertaining to improvement so that connectivity continues to be limited.
This kind of enhances the cost of conducting ventures because the more time that the consumer waits pertaining to the information to reach, the more costly it is. Therefore money-wise it truly is still even more feasible to how to use e-commerce software. However undoubtedly that the problems of useful computing will be better resolved through m-commerce.
In the case of e-commerce, there is a significant level of concern with security. Problems are less relevant in m-commerce because of its wifi connectivity.
Even so even satellite television services which will serve as the platform for m-commerce can be susceptible to online cyber-terrorist and therefore cellphone companies are right now investing in this place. However there is no doubt that in m-commerce there exists less prospect of security issues and as a result this is certainly a more desirable proposition to get the customers.
60 that with out additional advancements in e-commerce, m-commerce will not become viable. This is a critical issue to consider because different services such as air carriers must focus their resources more about m-commerce than on ecommerce because cell phones are more traditionally used than computer systems.
Therefore virtually any promotional promotions targeting online business services will certainly gain better exposure through m-commerce than through e-commerce. The most important adding factor is that even individuals consumers whom are not more comfortable with using computer systems in conducting online deals will have employed mobile phones for communications purposes.