Wednesday, October 10, 2007

INTRODUCTION

Conducting business in the new Internet age will call for a new model for distributing, buying, selling, marketing, and servicing of products or services. Electronic Commerce (E-Commerce) is the distributing, buying, selling, marketing, tendering, negotiation and servicing of products, services or information over the electronic infrastructure and systems such as the internet, extranet, and other telecommunication networks. It can contribute to better linkage between buyer and seller. The new internet business models are mainly categorized as B2B, B2C, and C2C.

We’ve chosen 2 competitive eCommerce companies - Dell & Jetstar Asia for this project. We’ll examine and evaluate on its purposes, features, key characteristics, designs, potential strengths and weaknesses and some special highlights.

DELL'S STORE & PRODUCTS

This is a short clip which shows you Dell's 1st direct store opening where Products of Dell is introduced, and customers would have the opportunity to know more about the products and there's customer service staff to serve you. This is also 1 of the weaknesses for e-Commerce of Dell as customers would not be able to have the chance to experience the REAL products.

Please enjoy!~

ABOUT DELL

Dell was founded in 1984 by Michael Dell, the longest-tenured executive to lead a company in the computer industry. The company is based on a simple concept: by selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. The direct model allows the company to build every system to order and offer customers powerful, richly configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels.

Dell Inc. listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No. 34 on the Fortune 500. Dell's climb to market leadership is the result of a persistent focus on delivering the best possible customer experience by directly selling standards-based computing products and services.Dell has demonstrated this effect time and again as it enters new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories. Nearly one out of every five standards-based computer system sold in the world today is a Dell. This global reach indicates our direct approach is relevant across product lines, regions and customer segments.

RESEARCH REPORT 1: DELL

BUSINESS MODEL


Dell uses the direct-sales model (Business to Consumer) (B2C), which eliminates retailers that add unnecessary, time and cost, or can diminish Dell's understanding of customer expectations. Because of Dell's direct model—and the industry's response to it—information technology is more powerful, easier to use and more affordable, giving customers the opportunity to take advantage of powerful new tools to improve their businesses and personal lives. The direct model allows the company to build every system to order and offer customers powerful, richly configured systems at competitive prices. Dell would need to compete with other major competitors from similar industry like Fujitsu, Sony, Apple, Toshiba, Acer, HP, etc. However, Information technology (IT) is more powerful, easier to use and more affordable, giving customers the opportunity to take advantage of powerful new tools to improve their businesses and personal lives.

OBJECTIVES OF DELL’S WEBSITE

Dell characterizes that environment in a statement of corporate philosophy called the "Soul of Dell." It defines the kind of company Dell is and aspires to become, serves as a guide for Dell’s actions around the world, and ultimately forms the basis of Dell’s "winning culture."
Dell’s website allows consumers to view the range of product offers and specifications; job opportunities, allows investors to find out more on the company’s performance to make it more transparent to the public. Dell hopes to provide a number of interactive ways for customers to share and learn with others and with them. Dell encourages open conversations because Dell believes everyone has something to contribute. Dell has a special community conversations pages to read forum and blog posts, read ideas from IdeaStorm, watch videos from StudioDell, and read third-party news and reviews.

FEATURES & SERVICES

1. PAYMENT METHODS

Dell offers their customers various methods of payment via credit card, telegraphic transfer, cheque or bank draft, direct deposit, flexi payment and financing/leasing. The various methods of payment offered by Dell have made the transaction process more convenient, effective and efficient. The most attractive part is where they allow low monthly payments and this could aid consumers who wish to purchase a notebook or even PC to purchase this at a more affordable pricing.

2. PRODUCTS & REVIEWS


Dell sells all its products both to end-use consumers and to corporate customers via the Internet. Dell offers a wide range of products like Desktops, Notebooks, TVs, Printers & Ink, Electronics, Software, Accessories, Servers, Storage and Networking.
Dell have a mini forum for people to share their personal views and opinions of the products; indicating their sincere reviews on the pros and cons so that consumers will be able to understand the feedback from those users and weigh their advantages and disadvantages before they make the purchasing decisions as word of mouth is still the most powerful tool to promoting the products.

3. ORDER STATUS/ CART & ACCOUNT

This feature enables customers to view the status of their Dell orders; the final order specifications and amounts, including tax and shipping & handling, will be communicated following receipt of the online order.

4. DELL LIVE CHATS/ CUSTOMER SERVICE

Dell Live Chats is an interactive service which provides assistance to customers with help with account maintenance, orders and delivers. Customers are able to chat with technical support regards to hardware issues or operating system issues. Customers could also easily get technical support, financing support, sales support through email or calling Dell’s hotline. Customers can find its warranty information here and can even extend warranty through the website over the flow of spaces. They also accept customer’s feedback so that they would be able to enhance and improve their service and remain as the top consumers’ choice.

5. SECURITY


The Dell Store uses industry-standard Secure Sockets Layer (SSL) technology to allow the encryption of: potentially sensitive information such as customers’ name and address, critically sensitive information like their credit card number.

6. PRIVACY POLICY

Dell is guided by The Global Privacy Statement Regarding Customer and Online User Information to protect customers information.

KEY CHARACTERISTICS AND DESIGNS

1. Design Scheme and Graphics
Dell is well known for its affordable notebooks and PC. Dell’s corporate colour is blue and white where the website is also based on these 2 colours. Dell uses a very professional yet simple layout in presenting their innovative IT products. Once you enter into the webpage, consumers are clear about its products that Dell offers because of the flash that is playing in the background. The layout of the webpage is simple and user friendly, customers can easily locate products which they wanted to buy.

2. Navigation
The website is designed in a way where it has classified into 4 main categories to provides solutions (products) for different target groups of consumers (eg.
Home & Home Office; Small & Medium Business; Large Business; Government; Education; Healthcare & Life Sciences) This makes it more accessible and convenient for different categories of target groups to search for the products that’s suitable for their usage. Most importantly, at one glance customer would be able to find the hotline number for Dell for customers who prefer to be served by the friendly service consultants of Dell. With the help of the keywords search box, it enables customers with great convenience too where they could search for the specific categories from the wide arrays of products. Further information about Dell, concerns over privacy, site map and feedback are also available.

POTENTIAL STRENGTHS

Dell has done a good job in providing detailed specification & pricing of their products easily accessible in the website, thus providing buyers with greater product access, selection and knowledge. It allows customers to narrow down their selection by listing models which fits into their priority criteria (eg. Weight, screen size). Dell’s competing advantage against other large organization is that it offers a variety of customized services and support programs tailored to meet specific customer requirements. Buyers can simply customize the costs, the specification of their computers according to their preferences. The company also provides additional services such as a limited warranty for all computer systems, and offers 24/7 telephone and technical support. They offers special promotions which is only available online to encourage online purchases and also shows related products that complement each main products that customers purchase (eg. Mouse, flash drives, routers to go along with the notebooks or PCs).

WEAKNESSES

Online purchase may not be so establish for people who are not as IT savvy and think it’s a hassle to just purchase the products with just a click away. Though it’s convenient, but some people would have worries about the e-purchase as customers find that it’s not secure to submit credit card details or personal information just over the internet. Some customers would also prefer to have a feel and look of the products before transaction takes place, where online shopping has limitation on these.

SPECIAL HIGHLIGHTS OF DELL’S WEBSITE

Dell’s website has a “Training and Certification” section which provides effective and comprehensive online courses at an affordable cost to allow organization to maximize its potential, build an effective organizational and communication skills, and improve their competency and performance through training. Users can also benefit from the course at no cost and gain knowledge of hardware and software used at home or in the offices. Additional services include access to live help and e-mail support.

JETSTAR COMMERCIAL ADS

It's all about Choices, Jetstar provides All Day, Every Day Low Fares!!!


ABOUT JETSTAR ASIA

Jetstar is named the World's Best Low-Cost Airline. In recent years, there has been an increase in the number of budget airlines established to capture the tourism market. Jetstar is Australia's and Singapore’s new low fares airline for Australia and the Asia pacific. Their aim is to provide consistent low fares to Australian, New Zealand and Asian leisure travelers. Jetstar takes pride in keeping costs to a minimum so that we can travel more often. This, coupled with a brand-new fleet, great destinations and friendly crew creates a comfortable and enjoyable travel experience, affordable to all. Jetstar is a subsidiary of Qantas, created in response to the threat posed by other low cost airlines competing in the same market, such as Zuji, Tiger Airway, Air Asia etc.

RESEARCH REPORT 2: JETSTAR ASIA


BUSINESS MODEL

Jetstar encompasses a business-to-consumer (B2C) model and a business-to-business (B2B) model. By nature of the business, Jetstar provides low fare rates to travelers. This constitutes a B2C model.On the other hand, Jetstar provides other travel services and products to travelers. This is possible by way of collaborating with other companies (e.g. Hotels, AIG Insurance). In turn, this allows Jetstar to earn a certain amount of revenue from the external service providers by allowing them to advertise on Jetstar's website. This also acts as an ideal medium to reach the regional audience in the captive environment. Thus, this constitutes a B2B model.


OBJECTIVES OF JETSTAR’S WEBSITE

With the internet, it allows transaction over the flow of spaces, information on flight information could particularly be shown at one glance. It reduces the hassle for consumers to check out flight information physically at the travel agencies. Comparison among different companies could be done before transaction takes place. The e-commerce website of Jetstar serves the following purposes:

1. Book air tickets
Australian, New Zealand and Asian leisure travelers are able to book air tickets online. This is done by providing the relevant and appropriate information such as travel dates, destinations, and personal particulars. Should there be a problem; travelers are able to change their flight booking online.

2. Flight information
Travelers could check their flight schedule and also the arrival/departure schedule.

3. About Jetstar
People can find out more about the company's background, the fleet, the staffs, news releases, job opportunities with Jetstar and advertising opportunities with them. Information such as product features, airport regulations, and awards received by Jetstar are available.

4. Promotions
Travelers are able to view the current promotions by Jetstar such as flight charges and hotel packages. There are also promotions that tie up with different companies, eg. POSB Everyday Credit Card Special

5. Travel services
Travel services such as eVouchers, hotels, insurance, group bookings and travel guides are available. Other services like car rentals are also available.

FEATURES & SERVICES

1. PAYMENT METHODS











Payment scheme for purchase of air tickets online is by international credit card – Mastercard or Visa.

Customers also have the flexibility to make payment offline by paying via Singpost or 7-11 outlets in Singapore only.



2. JETSTAR'S "DOUBLE THE DIFFERENCE" VOUCHER GUARANTEE

Jetstar guarantees the lowest fares among all low cost carriers as they have the confidence that their airfare pricing would be competitive than other internet airfare. It gives the consumers a peace of mind when they purchase tickets over at their website because "Double the difference" voucher will be issued to any customer who finds a web fare lower to that of Jetstar Asia's.

3. TRAVEL INSURANCE





In partnership with American Home Assurance Company, Singapore (AHAC), Jetstar now offers flexible travel insurance options with JetCover Travel Insurance and AIG Assist Global Travel Protection.

4. CHECK OR CHANGE BOOKING
This feature provides the customers the ease of checking their current online booking status with ease of convenience and also customers could be kept up to date with JetMail.

5. SECURITY
For the protection of their customers, Jetstar's website provides a secure server for those services that contain confidential information. This information is encrypted using the Secure Socket Layer Protocol (SSL), which was developed so that only the intended recipient should be able to decipher messages addressed to them. This will significantly improve security of data provided by or for members.

6. PRIVACY POLICY
Jetstar Airways protects the privacy of customers’ personal information under the National Privacy Principles. It will apply to any personal information customers provide to them in the course of dealings with them. Other than providing information to 3rd party that they are liaising with to complete the transaction, they will not disclose customers’ personal information without their consent unless disclosure is necessary.

KEY CHARACTERISTICS AND DESIGNS

1. Design Scheme and Graphics

The corporate colours of Jetstar are orange and black and thus, the color scheme of the website is developed using these 2 basic colors in addition to white and grey. The size of text used is small on average, however it is still readable.The homepage is filled with an array of graphics and pictures that include promotions, travel services, insurance, destination guides, etc. This brought about a cluttered and compact webpage.

2. Navigation
The website navigation is very user friendly; customers can easily visit the sections they want to go by clicking on the banners and hyperlinks. They also created an easy booking system interface on the main page which allows clients to book their tickets faster. Tabs are created on the top section of the webpage to allow users to navigate through the entire site easily. This website also has a sitemap where customer will be able to find the necessary links to the page where they wanted to go.


POTENTIAL STRENGTHS

Users can find a lot of information in 1 page and it's easy to navigate through all the hyperlinks. It shows different links to other web site for hotel accommodation etc. thus bringing more convenience to consumers. The Web site also looks very attractive & vibrant which brings out the holiday mood in the consumers.


WEAKNESSES

The banners and hyperlinks on the website are packed tightly together in one page, hence it look very messy and unprofessional. Users may have a difficult time looking for the information they need. Also there seems to be lag issues with the site loading up, impatient customers may get annoyed and close the site immediately. More payments should also be included with FAQs for consumers to have a better understanding of how the company goes about allocating their flight seats etc.


SPECIAL HIGHLIGHTS OF JETSTAR’s WEBSITE







Jetstar’s homepage has a travel services section which mainly highlights useful information to travelers. Jetstar has collaborated with other service providers to further enhance their service. (E.g. travel insurance, hotels) For instance, travelers going for a short getaway to islands near the beaches can enjoy themselves with a peace of mind, and also enjoy a discount privilege for the subscription of tsunami alert, since Jetstar has tie up with subscription to the tsunami alert system. Besides which, travelers are given options to purchase their air tickets at any Singapore Post Office, or pay their air ticket fees at any local 7-Eleven stores. In addition, they can find exclusive deals with hotels which Jetstar has tied up with.

COMPARISONS BETWEEN DELL & JETSTAR













BUSINESS MODELS

Both Jetstar and Dell Computer shares similar business models, mainly B2B and B2C.As the Internet diversifies globally, it opens avenues to these companies to target on the vast population of online consumers. The Internet is most useful for products and services when the shopper seeks greater ordering convenience and lower costs. These business models allow their organization to yield advantages such as reducing costs, and increasing speed and efficiency. And by using the Internet to link directly to suppliers, factories, distributors, and customers, businesses such as Jetstar, and Dell Computer are passing savings on to customers. These websites offers greater flexibility, allowing the organization to make ongoing adjustments to its offers and programs to appeal to their target market.

KEY CHARACTERISTICS & DESIGNS

Jetstar provides great value to buyers looking for information about differences in prices and services. It has a comprehensive set of key features such as flight information (arrival/departures and flight schedules), checking and changing booking, holiday packages, insurance and hotel information, news and articles for interested readers, subscription to its “JetMail”, hotline help, and free downloads on travel and destination guides are made available to the online consumers. Buyers can view Jetstar’s website in Chinese language as well, catered to online consumers who are literate in Chinese. Their special feature is the “Sales Fare” where occasionally, Jetstar would adjust the airfare rates as low as possible to entice travelers to buy their tickets. The website has a login function particularly for members, travel agents and corporate booking. Travel agents who are interested to collaborate with Jetstar can logon to correspond with them. Also, buyers can make their payment online conveniently and almost instantly.On the contrary, Dell Computer provides great value to buyers looking for information about differences in product features and value. It has key features such as products, services, purchase and support, and hotline help readily available to the online consumers. Online consumers can have access to its abundance of information on desktops, notebooks, monitors, printers, electronics and accessories, in order to do comparative shopping. With the ease of a click, online consumers can simply place their order for their preferred products according to their specification, and make their payment online conveniently as well. The website has another added feature, “As advertised” which allows buyers to browse for products which Dell has placed an advertisement on newspaper and online. With this additional feature, it helps online consumers to save on time and energy to look for the products of their choice.

REFERENCES & DISCLAIMER

REFERENCES

JETSTAR ASIA

Jetstar Corporate Website
The World Airlines Award

DELL

Dell Corporate Website
Dell Community

Disclaimer:

We are not blogging perse, but only "borrowing" the friendly easy-to-use resources to park our research findings - somewhat like creating a knowledge sharing database environment.