ELECTRONIC COMMERCE

Electronic Commerce - Case Study

Electronic Commerce

Company Introduction

SHYT is a branch of China Young Travel Agency located in Shanghai of China. SCYTS has, through 25 year's development, grown from a single inbound travel service to a comprehensive travel service enterprise. The sales amount of 2003 reached 400 million RMB (50 million USD), and the businesses travel occupied 25%. In her business expansion SCYTS has formed a reputed brand name and a one-classic service, professional operation; brand name has developed a core principal “high staff trait, high service quality, high level tourism”. Based in Shanghai it extends to China and develops abroad.

Vision: Based in Shanghai it extends to China and develops abroad and become a large multi-travel enterprise in China.

Nature of business: supporting travel service and some related service.

Channels of distribution: begin from eating, living, walking, visiting, purchasing and entertainment, create travel service from all aspects.

Level of technology used: just installed the network for not a long time and need a website and all kinds of software systems, hardware systems and network management system to be integrated.

Organization structure: includes HR department, finance department, Client service department, domestic travel office, foreign travel office, call centre, customer reception mall, network and information management control centre.

Scope and coverage: stands in Shanghai, penetrates the whole China and steps into all over the world.

Strengths and weaknesses: Offer the professional, thoughtful, prompt, accurate good service to domestic and international visitors and have won the praise of the masses of customers. Network systems will be awaited to improve.

Literature Review

E-commerce uses internet as its major tool. It is a valuable medium for international trade as it reduces communication costs, reduces time-to-market for goods and also exports services. Internet can deliver information in any sort of digitalized format at a low cost to any location in this world. The firm can then pass on this information to its customers in the form of lower prices. In cross border trading, it helps in the supply chain area of goods and services by cutting overhead costs associated with transport, sales and distribution. The internet also creates new opportunities to raise service levels, which are increasingly the key to successful business-to-business and business-to-consumer trading (Efraim, David, Jae, and Dennis, 2004).

E-commerce simplifies processes, reduces costs, and makes them more efficient. For example: Air Arabia uses online booking system and ticketing for its operations. In this way it reduces its costs and has more time to market as compared to the other airlines like Emirates and Kuwait Airways. It helps in product innovation. Example: In the field of health and medicines, certain clinic websites cater to information on diseases and its cure. Patients have the opportunity to chat with people having same health concerns and provide responses to health concerns. Mp3 players are used to download music but they can be uploaded on the internet and make music available for others as well. This shows that e-commerce has given opportunity for more products to be available in the market ...