10 E COMMERCE AND E GOVERNMENT
A
Case Study 1
Up to the early 1990s, travel agents sold airline tickets and passenger booking details were stored on computers shared between airlines. Older companies dominated the industry, and it was very difficult for new companies to compete. The growth of the Internet made the e-ticket possible. Details of bookings could be stored on an airline’s computers and printed off the Internet by customers. Ryanair, a ‘no-frills airline’, used this as an opportunity to gain market share. By
B
It is generally agreed that for e-commerce to grow quickly in a country, consumers need secure methods for making payments online.
In China, relatively few consumers have credit or debit cards. Despite the fact that e -commerce transactions are the quickest way to pay, evidence from Ou, Sia and Banerjee (2005) suggests that many consumers do not want to pay online. They have concerns about the quality of the goods they are ordering and whether they will arrive. By paying on delivery, they can check that the goods are as described and have not been damaged during transportation.
2002, around 91% of its passengers had purchased e-tickets from its website, which it used as a marketing and promotion tool. It also increased profits by offering additional services such as car hire and accommodation. This innovative use of Internet technologies enabled the ‘no-frills’ airlines to increase sales while cutting costs. Ryanair’s growth has been so spectacular that it has overtaken the older, larger airlines and is now the largest airline in Europe in terms of passenger numbers carried. (Source: Oz, E. Management Information Systems. Cengage Learning, 2008.)
C References
[1] A. Bajaj and L. N. K. Leonard, “The CPT framework: understanding the roles of culture, policy and technology in promoting ecommerce readiness,” in Problems and Perspectives in Management, vol. 3, 2004, pp. 242–252.
[2] S. Haag, M. Cummings, and D. J. McCubbrey, Management Information Systems for the Information Age. New York: McGraw-Hill, 2002, p. 214
[3] K. Rouibah, A. E. Hassanien, and O. Khalil, Emerging Markets and E-Commerce in Developing Economies. Hershey, PA, USA: Idea Group Inc. (IGI), 2009.
[4] C. X. J. Ou, C. L. Sia, and P. K. Banerjee, “What is hampering online shopping in China?,” in Journal of Information Technology Management, vol. 18, 2007, pp. 16–32.
[5] “China ‘yet to embrace e-commerce’,” BBC, Nov. 2005. [Online]. Available:
http://news.bbc.co.uk/1/hi/business/4446278.stm. [Accessed: Dec. 3, 2009].
[6] T. S. H. Teo and C. Ranganathan, “Adopters and non-adopters of business-to-business electronic commerce in Singapore,” in Information & Management, vol. 42, Dec. 2004, pp. 89–102.
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