E-COMMERCE STRATEGIC PLAN

E-Commerce Strategic Plan

E-Commerce Strategic Plan

Case: E-Gatematrix: Creating A Services Niche

Company Introduction

E-gatematrix is a mid-tier vendor focusing on in-flight service management (i.e. catering management). This vendor is a subsidiary of Gate Gourmet, a global catering services provider. E-gatematrix products have been widely used in airline industry. Big airline companies such as Cathay Pacific, Singapore Airlines and KLM have flourished much benefit from it (e-gatematrix, 2011). E-gatematrix cleverly differentiates itself from the other APS vendor because of its specific and focused vision in providing in-flight service management. E-gatematrix found its niche market where other competitors are competing in higher level APS system. Supported with its parent company's core competency in providing catering services for the airline industry, E-gatematrix possess a competitive advantage compared to other competitors (e-gatematrix, 2011). In-flight service management that e-gatematrix provides, include service scheduling, menu specifications, galley planning, logistics/asset management (for catering purposes), service ordering, invoicing, service pricing, and performance tracking. E-gatematrix focuses on improving airline in-flight services, assuring that the airline provides best quality in doing their in-flight services efficiently and effectively (e-gatematrix, 2011). E-gatematrix provides optimal in-flight services management and planning, thus enable airline companies visibility to organize its in-flight services. Furthermore, E-gatematrix considers its products as an added value in SCM system and is designed to complement airline's existing SCM and ERP.

Outline the key strategic issues facing the firm at the case date, paying particular attention to the ways in which e-technologies are influencing the competitive environment in which the firm operates.

Airco, a large US commercial airline, and Gate Gourmet, the second largest airline catering company in the world, were anxious about the quality and costs of their above-the-wing operations. Airco awarded the above-the wing operations to the e-gatematrix for a five-year period. The primary task of the e-gatematrix was to establish a synchronization and coordination among the suppliers, distributors, caterers, service providers and airlines. SupplyTech was ready to provide IT infrastructure to the e-gatematrix to manage the contract. The existing supply chain was too complex as there are about 40,000 items on a long haul 747 flight. Participants of the above-the-wing service supply chain were grouped into four categories:

manufacturers/suppliers/distributors,

caterers,

cabin cleaners,

airlines.

The strategy of the e-gatematrix was the synchronization of the supply chain to increase their efficiency and profit. E-gatematrix discovered some major areas, which includes service scheduling, equipment balancing, menu ordering, inventory management and galley planning to synchronize the supply chain systems. To manage these key areas, e-gatematrix planned to implement an advanced IT infrastructure.

E-gatematrix's business model focuses on three things: supply chain management, procurement, and the use of Web services/SOA (service oriented architecture). E-gatematrix has a business model that will prove challenging; however, with the proper sequential steps and flexible partners, such as AirCo, the model is definitely feasible. As stated repeatedly in the Robinson and Kalakota text, organizations must embrace e-business and be willing to take chances; this is exactly what the partnership between AirCo and e-gatematrix will be - a ...