Impacts of E-business for Hospitality Industries - myassignmenthelp

Question: Write about theImpacts of E-business for Hospitality Industries. Answer: Introduction In the current business scenario, internet and online technologies are contributing in rapidly evolving the existing scenario of doing business. The exiting process of providing service to the customers, providing customer convenience and value creation of the products are being changing rapidly with the help of online technologies[1]. One of the key or prime developments being happened due to the initiation of internet is the E-business. With the help of this concept, business organizations are going beyond own limits to provide effective customers service and to stay ahead in the competition. Hospitality industries such as Oman air will have several advantages from the involvement of E-business[2]. It will enable them to effectively deal with the customers and enhancing their convenience. Thus, they will gain more competitive advantages in the market. This report will discuss about the impact of initiation of E-business on Oman air. Suitable article will be reviewed in order to determine the effectiveness and viability of using the concept of E-business for Oman air. Overview of the article There are various articles being discussed by the different authors about the impact of E-business on the organizational performance and effectiveness. According to Voola, Casimir, Carlson and Agnihotri (2012)[3], E-business is the new age trend in the contemporary business scenario. According to them, there are various aspects that should be maintained in order to initiate the concept of E-business in the organization. However, in this article, there are various potential benefits being discussed for the business organizations. Thus, discussion of these benefits of E-business will help Oman air to determine the most effective steps for enhancing their organizational performance with the help of internet. According to the authors, initiation of the e-business with the help of innovations such as webpage, online payment systems, and online shopping will help the business organizations to cater to more number of customers effectively. Moreover, these steps will help them in gaining com petitive advantages in the market by providing updated services to the customers. Evaluation of the article The above discussed article have only discussed about the implication of technological innovation and E-business concept on the organizational performance. According to this article, organizational performance will get enhanced with the initiation of the concept of E-business. However, in the initiation of the e-business, there are other various factors that should also be considered by the organizations, to increase the effectiveness of their e-business. Opinions being given by George Wynn, Turner and Lau (2013)[4], states that, implementation of the concept of E-business in the organization will involve the change process and involvement of information technology. This is due to the reason that, according to the authors, implementation of the process of E-business involves change in the existing business procedures and thus change is required to adhere to the criterions of E-business. On the other hand, another theory being given by Lai, Jung-Yu, Chih-Wei Kan and Khire Rushikesh Ul has (2013)[5], employee involvement and participation in the organizational process is also required in effective implementation of the concept of E-business. Moreover, initiation of the e-business is not only beneficial for the customers and organizations but also for the employees[6]. This is due to the reason that, employees will be more equipped and will be supported by the updated technologies in dealing with the customers. Thus, it can be concluded that, there are various factors that should considered by the business organizations in implementing the process of E-business. Moreover, it is also being stated by the authors that, implementation of E-business is having various positive implications for the business organizations[7]. The following sections will discuss about the implications of E-business on the organizational performance and effectiveness on Oman air. Evaluation of E-business policies on Oman air Various E-business policies such as marinating websites, online ticket booking facilities, online payment systems, offering e-cash to the customers and providing online customization options for the added services will help Oman air to provide more and effective customer convenience[8]. This will have various and diversified positive outcomes for the organization. In this case, the example of Emirates airlines can be taken. The design of the official website of Emirates airline is being done in such way that it will provide holistic service to the customers. Customers visiting their web page will have the access to the history of the company along with having the facility of online ticket booking. Moreover other online facilities being offered by them are the online check in facilities, online management of the passenger seat, customer loyalty programs and added facilities such as tourism package and hotel bookings across the world[9]. Thus, with having these diversified facilities, Emirates is covering the diversified needs of the customers. In the case of Oman air, enhancing the utility of their official websites will help them to enhance their competitive advantages in the market. This is due to the reason that, in the current business scenario, especially in the airline sector, customers are more looking for the convenience and peace of mind in selecting their preferred airliner[10]. Thus, organizations such as Emirates are going ahead in the competition. In order to stay competitive in the market, Oman air also has to initiate the facilities of online payment and other facilities[11]. This will help them to enhance the effectiveness of their organizational process by catering to more number of customers. Implementation of Porters five forces theory Porters five forces theory will help to determine the various impacts of involving of E-business in the organizational activity of Oman air. According to this theory, the first step is the threat of entry. For Oman air, the threat of entry is always high due to the probability of new entrants[12]. Moreover, the new entrants in the market will offer more updated service to the customers. Thus, it is of utmost importance for the Oman air to initiate E-business to offer service to the customers according to the change in the requirement in the market. Thus, the more will be the diversified online services being provided by them, the more they will be equipped to take on the new entrants. The next aspect is the bargaining power of the suppliers. For Oman air, suppliers include the partners of them such as booking agents and travel agents[13]. However, in case of not having any online or E-business activity, they will be more depended on the existing partners and it will increase the bargaining power of the suppliers. On the other hand, initiation of E-business will help to reduce the dependency on the suppliers. The next element of this theory is threat to the substitutes. In the current scenario, various airliners are operating and competition is high. The core service being offered by them is same of providing air service. Thus, in order to stay ahead in the competition, Oman air has to promote distinctive service for their customers. Initiation of the E-business will enable them to promote unique services to the customers from their portal, which will help them to stay ahead in the competition. The next step is the bargaining power of the buyers[14]. In the case of airline industry, the bargaining power of the buyer is more due to the presence of different airliner in the market. In this case also, initiation of the E-business will help Oman air to provide one of a kind services to the customers, which will reduce the number of options available to the customers. The last step is the industry rivalry. Switching cost for the customers is very less and thus, customers have low level of loyalty. Hence, with the initiation of the E-business, the diversity of the product and service portfolio of Oman air will get increased[15]. More added service can be offered to the customers. Thus, among the competition, Oman air will have competitive advantages[16]. Recommendations The initiation of the E-business should be implemented in the global scenario. This will enable the customers to have the online flight booking facility for all the major cities around the world. The interface of the portal or web page should be changed periodically in accordance to the market trend. This will enhance the visibility and attractiveness of the web page to the potential customers. Privacy and security is one of the key contemporary issues being faced by the online portals. Thus, Oman air should ensure the security of their portal. This is important due to the reason that, customer information will be stored and thus leakage or breach of customer information will have negative implication for them. Customer loyalty bonus and rebate should be initiated in order to motivate the customers to use their online facilities. It will help them to increase the online traffic. In this case, extra discount can be provided for the customers booking tickets from online portal. Any organizational excellence and achievements should be effectively communicated and promoted through their portals. It will help Oman air to enhance their brand value and service as well as attracting more customers. The online portals should be made available in different major languages to effectively communicate and reach out to different customers from different social groups. Conclusion Thus, it can be concluded that, initiation of the E-business will help Oman air in enhancing their organizational effectiveness. Their brand value will also get enhanced and communicated to more number of customers around the world. Critical analysis has also been done to determine the benefits of having E-business for Oman air. It is been determined that initiation of the E-business will help Oman air to gain more competitive advantages in the market and will help to create distinctive image in the market. Various recommendations are also been provided and discussed in this report. It is being expected that, effective implementation of these recommendations will help to enhance the organizational performance of Oman air.