Individual Report IntroductionThe United Kingdom has seen a number of enterprises grow from grass to grace within short time duration. Among these enterprises is the no-frills airline company EasyJet that is based in London. This airline company was established in 1995 and within five years in the intensively competitive airline industry, it had grown at an impressive rate from a sales of forty-six million pounds in 1997, to a sales of three hundred and fifty-seven million pounds in 2001 (Koenigsberg, Muller & Vilcassim 2008, p. 280). At the moment, this company is viewed as the largest United Kingdom airline in terms of the number of passengers carried.
Furthermore, this company operates over two hundred aircrafts with nineteen basses all over Europe. The success of this organisation is attributed to its innovative strategies that involved utilising new technology and e-commerce avenues. This paper is report on issues relating to e-commerce and new technology facing EasyJet and what the management of this enterprise can do to address these issues. Background of EasyJetKoenigsberg, Muller and Vilcassim (2008, p. 280) describe EasyJet as one of England’s most successful short-haul and low-cost airlines.
This company was established in March 1992 and started its operations in May with two wet-leased Boeing 737-200s, which operated from London Luton Airport to Glasglow Airport in Edinburgh. This company was incorporated in 1995, but its aircrafts were operated by Ait Foyle and GB Airways, since it had not yet received its Air Operator’s Certification (Koenigsberg, Muller & Vilcassim 2008, p. 280). In 1996, this company took a delivery of its first wholly-owned aircraft and goes international with an initial service to Amsterdam from London’s Luton airport.
Within a span of twelve months after the first delivery EasyJet pioneered the use of the internet for booking and travels and further introduced low-cost air travel. This low-cost air travel strategy has fuelled the growth of this firm through a combination of base openings motivated by the consumer demand for low-cost air travel and through acquisitions. Presently, this company operates over two hundred aircrafts, has nineteen basses all over Europe, and has been ranked the second-largest low-cost transporter in Europe. These company’s strategy are; (1) strong corporate structure, (2) commitment to customer service and safety, (3) a simple fare structure in which clients book online early for low prices, (3) low unit cost, (4) strong branding, and (5) multi base network (Rae 2001, p.
330). New Technology and E-commerce IssuesDespite its tremendous progress; fuelled by innovative ideas in the airline industry, this airline enterprise is not immune from the common issues that face majority of organisations today. According to Laudon and Laudon (2010, p. 342) these management issues in relation to new technology are the loss of management control, organizational change requirements, security, scalability and reliability, ethical and legal issues, inhibitors and barriers, and other implementation issues among others.
Turban et al. , (2008, p. 147) outlines the other issues in relation to e-commerce as; data security ethics, privacy, legacy data, data delivery, cost-benefit and justification issues, and systems development and integration. Among these issues, EasyJet is currently faced by questions of reliability of its new technologies and data delivery issues regarding its online travelling strategy.