Lucky Air Case Study

Register to read the introduction… Since Lucky Air operates in China there are government fess and regulations that needs to be considered to determine if e-commerce is even an option or will they spend more on extra costs. Lucky Air should provide a safe way to accept payment, and create a solution of how to lure in the consumer to utilize Lucky Air online for purchases and other travel services. Revenue may seem to be the most important aspect to consider which would be how to advertise and how to get advertisement on their site to create more revenue, I believe it is not. Overall Internet usage in China was at 19.1% in 2007 and 69.7% in the United States. Credit card usage over the Internet was less than 4% in China and 90% in the United States. Although the fraud and errors in online payments existed in both the United States and in China it seems that the people in China are more cautious about Internet usage and preferred offline cash payments even for online transactions. The issue was not a lot of e-commerce companies wanted to incur the cost of a call center, retail store and the cost of providing an online retail store when 22% of those who used the Internet actually made an online purchase. To be able to provide a secure site for payment, Lucky Air’s executive team will need to research ways to protect consumers so they feel safe enough to utilize online transactions of airfare. An easy method of protecting …show more content…
(2012, November 20). Securing China's e-commerce growth. Retrieved March 14, 2014, from ChinaDaily USA website: http://usa.chinadaily.com.cn/opinion/2012-11/20/content_15943117.htm

About PayPal. (n.d.). Retrieved March 17, 2014, from PayPal website: …show more content…
Companies need to continue to improve and be innovative to stay competitive as competition will always be an obstacle, but a motivation to grow. Focusing on e-commerce is a tactic that will be a competitive advantage over other airlines. E-commerce may give Lucky Air a one up from the other airlines, but they could also learn from them as well as they have found a way to stay competitive without focusing on e-commerce. For example because of government restrictions on low-cost ticket prices, Spring Airlines started to bundle services with hotels and other travel services as one package that the consumer would purchase, this allowed the price of the fare to be 34% lower than the average market price. This bundling tactic and the utilization of Web 2.0 will allow consumers to review and rate vacations and then chose a package that best suites their needs for vacation of business trips. Luck Air can also continue to model after US and European airlines for offering low-cost ticket prices, but will need to research and analyze how consumers use the Internet and where they travel as United States and European consumers utilize the Web and Internet very