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Why ECommerce Is Successful Case Solution

Solution Id Length Case Author Case Publisher
1976 728 Words (4 Pages)
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E-commerce is the online use to manage business operations (Wilson and Abel, 2002). E-commerce involves the creation of a website whereby customers can come and make purchases online and receive the final product at their doorstep. An organization is deemed as an E-organization if it generates most of its revenue from the internet platform, is operated 24/7 and which has a centralized organizational structure.

Case Analysis for Why ECommerce Is Successful

The technological advance has evolved the shopping experience online. Customers have reported greater ease, time saving and efficiency (Burke, 2002). E commerce has further become a marketing research tool that can help in market targeting and segmentation. This further leads to the creation of brand equity and brand loyalty by giving a clear and an effective online service (Wilson and Abel, 2002). The consumers are most likely to order household items, books, financial and travel services online (Brownie, Durrett and Wetherbe, 2004). The most important benefit of E-commerce is that it lists the information at one platform that reduces searching costs for consumers (Brownie, Durrett and Wetherbe, 2004).

E-commerce has revolutionized the system of Airline ticketing. E-commerce has totally eradicated the need of travel agents (Shon, Chen and Chang, 2003). E-commerce has adopted the Global Distribution system and has reduced costs for the airline industry. The innovation has further led to the generation of Frequent Flyer Programs that records the customer data, ticketing and reservation information. There are many websites that cater to online ticketing airline system; for example, Ezfly, Eztravel, Ysticket and China Airlines (Shon, Chen and Chang, 2003). Moreover, the customers prefer online shopping; however, they need to know the right prices, and they later compare the tags with that of the closest retail stores (Burke, 2002). The expectations of the customers for online shopping are that the web pages should clearly show a cost benefit analysis of the purchase (Burke, 2002). It was also reported that the young innovative people less than 25 years of age showed interest in online shopping while the older age group preferred in-store shopping (Burke, 2002). The highly educated segment also preferred shopping online (Burke, 2002).

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