BC501

eBUSINESS FUNDAMENTALS
Individual Assignment

Adam Elzahbi 2553501

Table of Contents
Executive summary 1.1) Introduction……………………………………………………………...(page 4) 2.1) Qantas……………………………………………………………..........(page 5) 3.1) Virgin Blue……………………………………………………………....(page 6) 4.1) Jetstar……………………………………………………………...........(page 7) 5.1) Recommendation……………………………………………………....(page 9) 6.1) Reference List………………………………………………………....(page 10) 7.1) Appendix I……………………………………………………………...(page 11) 8.1) Appendix II..…………………………………………………………...(page 12) 9.1) Appendix III…………………………………………………………….(page 13)

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Executive Summary
The last decade has seen a dramatic change in the way that businesses all over the world operate. We are currently in a digital revolution, where businesses can no longer solely rely on their ‘Bricks and Mortar’ stores and outlets, but have to incorporate digital mediums, none more evident than the internet, to promote and sell their products or services. The airline industry is developing rapidly. Currently anyone with access to the internet can visit their chosen airlines website, and book a flight to any destination in the world. This is an extremely effective way for companies such as Qantas, Virgin Blue, and Jetstar to increase profits, whilst keeping the consumer happy with a fast, efficient and effective booking service. Matters such as metrics, different servers and cookies, and the way in which they are interpreted, will all play a role in any further development of the websites, and essentially how profit is made. However, each site has its pros and cons, and ultimately one of the three will prove to be the most productive and user friendly towards consumers who wishes to book airline tickets online.

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1.1) Introduction
The Australian airline industry has evolved rapidly over the past 10 to 15 years. Prior to 2002, the Australian domestic market was limited to being serviced by two rival airlines that competed directly in all areas of airline services. The two companies, Ansett and Qantas, had been long time rivals in the sector until 2002, when Ansett was bankrupted on the 4th of March and subsequently ceased trading. Since the collapse of Ansett, two new airlines have commenced operations, focusing on the Australian domestic market; Jetstar, a subsidiary of Qantas, and Virgin Blue an unrelated “no frills” airline. Both have provided an alternative to consumers for cheaper domestic travel. All three of these airlines have a web site which leads to many different areas and sectors of the company online. This is a very effective way of attracting potential consumers, and increasing the purchase of plane tickets within each of the companies. Technology in today’s society is shifting power to consumers. e- Business is changing the channels which consumers and businesses have traditionally bought and sold goods and services. (Kalakota, R., & Robinson, M. 2001, p.35). In the past to book an airline ticket to your chosen destination, there were only two ways in which you could do so. Consumers would either have to ring the airline, making their booking over the phone, or visit their local travel agent to book their flights over the counter. In present times the internet is used to a greater extent, and more effectively. In today’s busy society, airline tickets are easily booked online providing a convenient and effective alternative for consumers, who can book a holiday without leaving home or the office.

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Certain Benefits of this change include:    Provides sellers to a global audience. The ability to operate with minimal infrastructure. Consumers have a wide selection of products that are being sold.

(Kalakota, R., & Robinson, M. 2001, p.35). As a result of these benefits, airlines around the world including the Australian based ones are adopting the way of the web. All this is happening for one major reason; to make a profit. As buyers embrace these new channels, new organisational structures are being designed around customers or market segments. (Kalakota, R., & Robinson, M. 2001, p.35). Once an airline has on online booking system, different issues start to arise. Matters such as metrics, different servers and cookies all will play a role in the development of the website. There are also four components for an online business to consider. If they don’t, making a profit will become quite complicated. These components are as follows:     Value Proposition Online Offering A Recourse System Revenue Model.

2.1) Qantas ‘The spirit of Australia’ (http://www.qantas.com.au)
Qantas was founded in the Queensland outback in 1920. Registered originally as the Queensland and Northern Territory Aerial Services Limited (QANTAS) they have been flying Australia’s skies for over eighty years. Qantas’s online website can be observed as the bench mark for the other two airlines. The site has all the relevant information for a consumer on the one page. The site can be easily navigated with the effective use of links, from selecting a domestic or international flight, to promoting specials,

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accommodation, car rental and information. Items are all in the right place such as:  The ticket booking station occupy’s a large proportion of the page making it easily accessible to consumers who predominately visit the page to use this tool.  Advertisements are kept to a minimum; a ‘specials’ link is located at the top of the page, which contains all deals on holidays and flights. Links regarding other Qantas related promotions, such as their new lounges, and holiday competitions, as well as a link for ‘great holiday deals’ are kept on the left. This online webpage is also very user friendly for the consumer who just wants to book their flights. Virgin Blue and Jetstar also have competent user friendly sites however they seemed more complicated in their approach to promote this. Their pages contain advertisements flashing all over the site, whereas Qantas excelled in that;  Their page is clean and fresh, the main page is straight to the point, and all relevant information is contained in the main window, the primary focus being on ticket bookings. There is also no need to scroll down for any other information hiding at the bottom of the page.  The links were all clear and concise making the site easily navigated to desired areas, finding deals, accommodation and car rental were effortless as the desired link is clearly located.

3.1) Virgin Blue (http://www.virginblue.com.au)
Virgin Blue is an airline that offers cheap flights around Australia, New Zealand, and Asia/ Pacific. Although it has flights expanding as far as Asia, its primary focus is the Australia domestic market. Virgin Blue saw the opportunity to penetrate the Australian market shortly after Ansett collapsed on in March 2002. They had done this with great success; offering a wide range of options when booking an airline ticket. Similar to the other pages,

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Virgin Blue’s homepage contains a ticket booking station, along with links for rental cars, accommodation, travel insurance and airport parking. When a consumer is trying to access a website, they have one primary focus in mind. In this case it would be to book airline tickets to a specific destination. The Virgin Blue page does not promote this aspect very well. It has a small booking space bordering the left hand side of the page. The rest of the room is reserved for advertisements and other sectors such as accommodation and car rental and even ‘What’s New’ section. Certain links are provided along the top edge of the page however a large percentage of users will not look to far to find what they are looking for. This page is relatively user friendly but still lacks in some areas. These areas are as follows:  The web site does not fit on one page; the user may have to scroll down a little to find what they are looking for. If the consumer is a loyal customer and a ‘Velocity’ member, they have to scroll down to log in their details, unlike the Qantas page where loyal customers are a primary focus, with their “Frequent Flyer’ login easily seen and accessible in the top right hand corner of the page.  Too many advertisements exist on the website. Consumers go to airline webpage to book tickets and the promotion of that feature is undersized compared to the amount of messy advertising on the page.  The booking station is moderately easy to find however the airline could promote this a little more as it is one of the main revenue builders for the company. However, if this issue is look from another angle, there are some major points which may contribute greatly to the site and its sales;  Whilst Qantas promotes packages on holidays, they are discrete. Similar to Jetstar, Virgin Blue has a key travel destination and price advertised at the top of the page, with other travel offers positioned just under it. This may be a major trigger in a consumers mind to purchase

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that package. It could be seen as a major revenue earner for Virgin Blue over Qantas.

4.1) Jetstar ‘Low Prices All Day, Every Day’
(http://www.jetstar.com.au) Jetstar came into the Australian airline industry on the 25th of May 2004. Jetstar is using the previous low cost airline Impulse as its operating entity. After Qantas purchased Impulse, the airline remained a separate entity flying under the QantasLink brand. The selection of Impulse as the vehicle for Jetstar allowed them to get Jetstar off the ground faster; therefore the Impulse brand has been replaced by Jetstar. The airline is wholly owned by Qantas but is managed separately and operates independently. Jetstar offers low fares domestically, and stretching out to New Zealand, the Asian Pacific, and even the United States. The Jetstar website has many similar qualities as Virgin Blue. When a consumer goes to one of the airline websites, the presumption is that they are going there to make a ticket reservation for a flight to a specific destination. Unlike the Virgin site where this information is not promoted to the point where it will grab the consumer’s attention immediately, the Jetstar site is clean and crisp, with the booking station easily set apart from the rest of the site, highlighted in the Jetstar orange. Although the Jetstar page has a lot of advertising for package deals, car hire, accommodation and travel insurance etc. the page layout is extremely appealing, unlike the cluttered mess of Virgin Blue’s homepage. There are four main package deals down the centre of the page, as well as a link for creating your own personalised holiday. This is a good way of promoting packages to customers, who can not only book flights, but can book a cheap, all inclusive holiday deal, further more increasing sales and profits for the company. This webpage may require the visitor to scroll down, but unlike Virgin Blue’s site, Jetstar keeps the less important information at the bottom, things that the

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everyday consumer doesn’t want or need to see, such as Jetstar news, and a Budget car rental ad. The Virgin Blue and Jetstar web pages are almost identical in concept. Both have the ticket booking centre located at the top left hand corner of the page and advertisements are abundant. However the Jetstar site is far superior to the Virgin Blue as it is more appealing, clean, crisp, and extremely user friendly.

5.1) Recommendation
As commented on before, Qantas is the bench mark site for the other two, Virgin Blue and Jetstar. Reviews of each site prove that Virgin and Jetstar have very similar qualities and Qantas is the outstanding link. Issues such as Navigation of the site, how user friendly the site is and wether the site can be identified were all touched upon to finally determine which site proves the most outstanding. As a recommendation, Qantas had covered all these issues on their webpage. It has to be noted though, that the Qantas site is for full fare ticket sales, and therefore, targets a specific market, predominately the upper class market, so therefore there is no need for them to promote package deals. Jetstar and Virgin are targeting a ‘no frills’ budget market, where the consumer wants to get somewhere, and get there cheap. For this reason, the use of advertisement for package deals, and other commodities, is for the consumer, who may want to try and save money on other aspects of their holiday. Out of the two, as previously stated, Jetstar does a much better job of accommodating its consumers, and for this reason I would recommend that Virgin Blue refresh the look of their page, making it more structured and more appealing, with important information and their loyal member login bay placed towards the top.

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6.1) Reference List
Kalakota, R., & Robinson, M. (2001). E – Business, Roadmap for Success (2nd Ed.). One Lake Street, Upper Saddle River, NJ: Addison – Wesley. http://www.virginblue.com.au http://www.qantas.com.au http://www.jetstar.com.au

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7.1) Appendix I (Qantas ‘The Spirit of Australia’)
(http://www.qantas.com.au)

Reference: http://www.qantas.com.au Above is the current homepage of Qantas airlines. As you can clearly see the page is clear and concise. The prominent focus being on ticket bookings, with advertisements and other unnecessary information kept to a minimum or via clearly displayed links. ADAM ELZAHBI 2553501 11

8.1) Appendix II (Virgin Blue)
(http://www.virginblue.com.au)

Reference: http://www.virginblue.com.au This is the current webpage that Virgin Blue is providing to its customers who are wishing to purchase a ticket with the airline. It is visible on the webpage of the large amount of advertisements as their primary focus. The ticket booking section located on the left hand side is only a small part of the page when considering it is the consumer’s primary focus when visiting the site.

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9.1) Appendix III (Jetstar ‘Low Prices All Day, Every Day’)
(http://www.jetstar.com.au)

Reference: http://www.jetstar.com.au This is Jetstar’s current homepage, which consumers will come across when wishing to book a ticket. It is similar to Virgin Blue as it has a vast amount of advertisement for other things than ticket bookings, but it differs from virgin in the following ways;  The booking form is clearly highlighted, set apart from the res of the page.

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 

The pages looks neat, and clean and appealing Less important information is kept to a minimum, and placed towards the bottom of the page.

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