Low-Cost Airlines’ E-Business and E-Commerce

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The new company to be launched

The company wants to launch a low-cost airline to diversify business and at the same time improve on the profit bottom-line. The company might make use of intranet and extranet technology in doing its business. Intranet technology is a local area network communication-based system of the network which is local and whose main purpose is to improve communication within a company using the technology of the internet.

When a company thinks of establishing an intranet technology system it has to be more careful not to overlook the important features that are accessible to maximize strategies of doing business and within the budgetary constraint. Intranet technology is a very important aspect of communication within companies and if well implemented and utilized then it will cover more than 90% of the company’s communications. Intranet technology enables a company to convey a large quantity of information wherever it has branches and at the same time (Lav 61).

Intranet technology

On the other hand, extranet technology enables people outside an organization to access information about a company. Using this kind of technology people working within a company are allowed to access information and communication together with others outside the company like example suppliers, clients, and even vendors. An extranet allows only the person authorized to be able to access any communication since it a private method of interacting with the clients. The company can therefore utilize the two technologies to improve on its service provision and especially at this time when it wants to launch, a new airline called the lo-cost airline.

Through this method, the company will cut significantly expenses incurred in conveying information from one office to another and be able to communicate with the customers who will be using the services of the new airline. Using the intranet technology will enhance communications and there will be no room for miscommunication or lack of it at all. Extranet technology is more than a technical buzz as some people would like to say. The technology if well adopted can give a company or organization an edge as compared to the competition and at the same time make a company run smoothly (Cassidy 12).

Extranet technology

Intranet and extranet technologies will have many benefits to the company as it launches the new lo-cost airline. The extranet will enable the company to straighten the processes of running the business by communicating to the clients and the prospective customers, at the same time being able to streamline the systems within the office. Using the extranet the lo-cost airline will be different from the competition by providing a smooth way of managing the affairs of the company and ensuring that the clients have access to the right information, at the right time and the right place. It will also be possible to post important communication about the airline in various accounts for relevant people to access it and internalize it.

Extranet technology will also enable the lo-cost airline management to order for any purchases it wants to make from suppliers by providing the best description of the supplies that they might need. Extranet technology enables the company to request any support that it may need from other stakeholders, business partners, or government officials. Another benefit of using the extranet technology will be to increase the lo-cost airline productivity since if services are of high class to the clients they will be able to remain loyal to the company and at the same time woo prospective customers.

Using the extranet technology will also enable the airline to eliminate the bottlenecks that make communication within and without the company a nightmare. An extranet is a secure technology for the airline since it has technological authentication and certifications. These certifications are secure and ensure that those who use it are legitimate as well as checking that the sites they use to access and login are secure. Other benefits for using extranet will be to provide solutions and answers to the questions about the airline, to collaborate and share relevant data, to share such information that the company prioritizes without any worry as it offers services to customers and also employees(Menken 22).

Benefits of extranet technology

Intranet technology too will be very beneficial to the lo-cost airline. Using this technology the airline will be in a position to offer solutions to common communication errors within the company and make sure the right information reaches all the employees within a short period. Intranet will also enable the airline to streamline its way of operating and meet communication needs with available technological network and computer-enabled software.

Like extranet, airline productivity will also be increased as it reduces paperwork. Productivity is high through reduced expenses on the operation and at the same time gets a large profit turnover on the new investment (Menken 5).

Benefits of intranet technology

Extranet and intranet will be very important to the lo-cost airline. However, there are risks in using these technologies but which require management to derive the benefits of the technologies. The greatest risk with the use of extranet is that someone who should not access private and confidential information about the airline accessing it. This will require thorough discussion in the management to ensure that information does not leak to unauthorized persons through data misuse. The risk with the use of intranet if not made properly in the airline operations is the location of where the relevant data is for a certain target group or the employees within the airline.

Failure to locate where the information is can result in unnecessary delays and may cost the company business. Another risk in the use of intranet technology in airline operations is associated with the retrieval of important data. Those managing the data might have saved it in unfamiliar sites or used computer programs which some of the employees in the airline may not know how to use them. A proper and suitable intranet and extranet will easily eliminate the risks associated with the intranet (Oz 9).



The company might also make use of e-business and e-commerce technology in its operations especially now that it is launching a new low-cost airline. The term e-business refers to businesses run over the internet or is operated by the utilization of internet-based technologies. The purpose of e-business is to enhance the company’s productivity and profit base. Generally, e-business describes all types of businesses run electronically by utilizing a computer.

On the other hand, electronic commerce is also known as e-commerce is the art of buying and selling products and services through the internet. E-commerce undertakes through the World Wide Web. Both e-business and e-commerce are interchangeable though they are distinct. Therefore, low-cost airlines can utilize the concept of e-business and e-commerce as a departure from traditional methods. Important to consider is that the airline will be serving people from different parts of the world and will need to introduce the company to them.

Using the methods it will be easy since in the comfort of an office the staff will be able to reach as many people as possible, introduce the company, introduce the services that it offers, let people know about the management, the location and all details that a client and prospective clients may need upon getting the information availed. E-procurement will help the airline cut on its cost very much by better management of the purchasing procedure. Doing the procurement online will help the airline utilize the resources, which otherwise could be used in moving from one place to another for other needs or expansion of its capital base.

Apart from buying and selling the services of the airline, e-business and e-commerce handle some businesses, which traditionally were impossible. This includes chatting electronically to support stakeholders and airline customers. Other traditional methods of doing business like over the phone are replaced by e-business and e-commerce thus saving the airline large amounts of resources and time while at the same time providing new opportunities that were unavailable previously (Oz 51).

Advantages of e-business and e-commerce

Many advantages will accrue to the airline using e-business and e-commerce. The use of these methods will enable the airline to reach a large customer base than earlier hoped and thus enhance its presence worldwide. As a company that is new in the market the use of these methods of doing business will make it interact with many people all over the world, chat, and even seal business deals more than it could have done through printed advertisements and other means of reaching customers. Another advantage is saving time and money. It will take a very short time to communicate business deals over the internet then using paperwork or people having to travel from one place to another.

Through less traveling expenses, the airline will be able to save a lot of money and then utilized it for expansion. The time saved by not having to move from one place to another to seal business deals will be very beneficial to be company too. Service delivery is fast to the satisfaction of the customers and thus lead to high profitability for the company in a very short period. Another advantage in the use of websites and e-mail, which is another means of conducting business and commerce through the internet, is that it is usually less costly and time-saving since there is no need to produce and reproduce copies for each person who has to get the services or information.

For the low-cost airline, emails or a centrally placed server will serve as efficient information dissemination. Another advantage of e-business and e-commerce to the company will be faster solutions for problems that may arise as virtually all information is available on the internet and also one can conduct a person who is far through emails, Facebook, MySpace, Twitter, and other forms of electronic communication and be able to get a solution faster (Bates 45).

Disadvantages of e-business and e-commerce

The advantages of using e-commerce and e-business by lo-cost airlines are enormous. However, there are disadvantages associated with these particular technologies. One of the disadvantages is the lack of security for business transactions. Another disadvantage to the airline resulting from conducting an online business is the substantial amount of resources needed in the process of redefining the services offered by the airline to be able to reach clients and sell online.

There are also resources needed for purposes of upgrading the available computer systems, resources to train personnel who will be conducting the business online and also doing the upgrade of available company software’s which have to be in line with the new business requirements. Another disadvantage is that the company will need to employ new staff to deal with ‘electronic data management (EDM)’ and ‘enterprise resource plans planning (ERP)’, which will also require company resources. The benefits of using intranet and extranet technologies are more than the risks for the lo-cost airline and so are the advantages for adopting e-business and e-commerce which out way the disadvantages (Lavin 30).

Works cited

Bates Mary. Building and Running a Successful Research Business: A guide for the Independent Information Professional. Amazon, Cyber Age. 2010. Print.

Cassidy Anita.Practical Guide to Information Systems Strategic Planning 2005. Business management. Amazon, AuerbachPublications, 2005. Print.

Lavin Michael. Business Information management system: How to find it, How to use it. Amazon, Oryx Press, 1992. Print.

Menken Invika. The Business Relationship Management Handbook: the Business Guide to Relationship management, the Essential Part of Any IT/Business Alignment Strategy. Amazon, Emereo Pty Ltd, 2010. Print.

Oz Effy. Business Management and information system. Amazon, Course technology ptr.1999. Print.

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