E-Commerce Example - The Travel Industry
Before we talk about the role of the Web Manager, let's go over a relevant example of how e-commerce is changing the landscape of business. In this case, I'll use the travel industry as an example of which we can all relate.
Before we talk about the role of the Web Manager, let's go over a relevant example of how e-commerce is changing the landscape of business. In this case, I'll use the travel industry as an example of which we can all relate.
The travel industry has been dramatically altered due to e-commerce. In an examination of the effects that e-business has had on this dynamic and extremely personalized industry, we see that not long ago, travel agents ruled the travel industry. These agents performed their service from their brick and mortar offices. After the popularity of the Internet hit mainstream, travel became a new animal. Individuals decided that they enjoyed researching their vacations online before they called their travel agents. These individuals became a prime target for online, e-commerce travel companies. Two of these companies are Hotel Reservations Network and Priceline. These two companies have done the best job thus far in reaching the do-it-yourself audience of travelers.
Hotel Reservations Network, or Hotels.com, made strategic alliances with major hotel chains around the world. They were granted rooms to these hotels at a discount, even when the hotels are “sold out”. Travelers have really begun to utilize Hotels.com in a major way. Another big hitter in the industry has been Priceline.com. Priceline offers the customer the opportunity to enter what they are willing to pay for a service, and the companies on Priceline’s list all bid on accepting your request. One other thing that sets Priceline apart from its competitors is its horizontal partnerships. They have brought in companies from airfare and hotels to companies that offer car rentals, vacations and cruises. Priceline has become the one stop source for all your travel needs. This one stop source mentality has become the war cry of many do-it-yourself e-commerce users. The belief is that both bricks and clicks will win in this thriving industry. However, one would give the edge to the clicks.
Travel is so personalized that most people, other than the busiest individuals, would prefer to make their own travel plans over the Internet. More horizontal partnerships in the industry will also lead to increased online research and procurement. Travel agents will be forced to move from their bricks into clicks in order to compete with the other online travel houses. Of course, the travel industry is just one example of traditional business being transformed by the e-business revolution. As companies move from bricks to clicks, or clicks within bricks (such as ordering from an electronic user interface at a fast-food restaurant), they will need competent Web managers to lead the transition. Professionals that understand sales, usability, functionality, tracking, storing customer information, advertising, community building, customer research, surveys, content building, and many other areas of e-business will be in high demand. These attributes can all fall under the umbrella of a "Web Manager". In our next post we will discuss the growing role of the Web Manager within an existing brick and mortar.
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