The social change, with Internet as one of its innovations, is changing the way business is conducted. The main objective is to study and get a better understanding of the use of Internet as a new sales channel when there already exist a sales channel including middlemen. A description is made covering the decision situation and three areas that are affecting the decision – relationships to the middlemen, added value in the channels, and financials. European airlines as represented i Sweden and US airlines were interviewed. For explorative purposes interviews have been made with travel agents…
Contents
1 INTRODUCTION
1.1 BACKGROUND
1.1.1 SOCIAL STRUCTURES
1.1.2 NETWORK ECONOMICS
1.1.3 RELEVANCE OF NETWORK ECONOMICS
1.2 PROBLEM DISCUSSION
1.2.1 THE DECISION SITUATION
1.2.2 RELATIONSHIPS IN THE DISTRIBUTION CHANNELS
1.2.3 VALUE ADDED
1.2.4 FINANCIALS
1.2.5 SUMMARY OF THE PROBLEM DISCUSSION
1.3 MAIN OBJECTIVE
1.4 DEMARCATIONS
1.5 TARGET AUDIENCE
1.6 REPORT LAYOUT
2 THE TRAVEL INDUSTRY
2.1 DESCRIPTION OF THE TRAVEL INDUSTRY
2.1.1 COST REDUCTIONS IN THE AIRLINE INDUSTRY
2.1.2 KEY DRIVERS
2.1.3 AN INFORMATION INTENSE INDUSTRY
2.1.4 ALLIANCES
2.2 AIRLINE ECONOMICS
2.2.1 REVENUES AND COSTS
2.2.2 KEY MEASUREMENTS
2.3 THE TRAVEL INDUSTRY’S CUSTOMERS
2.4 SUMMARY
3 METHOD
3.1 SCIENTIFIC THEORY AND METHODOLOGY
3.2 FUNDAMENTAL CONCEPTIONS
3.3 PARADIGM
3.3.1 POSITIVISM
3.3.2 HERMENEUTICS
3.3.3 OUR PARADIGM
3.3.4 CONCEPTION OF REALITY
3.4 METHOD APPROACH
3.4.1 ANALYTICAL APPROACH
3.4.2 SYSTEM APPROACH
3.4.3 ACTOR’S APPROACH
3.4.4 OUR CHOICE OF METHOD APPROACH
3.5 WORKING PARADIGM
3.5.1 CREATE A PRE-UNDERSTANDING
3.5.2 METHOD FOR COLLECTION OF DATA
3.5.3 SAMPLING
3.5.4 DESIGN OF INTERVIEW GUIDE
3.5.5 INTERVIEW PROCESS
3.5.6 ORGANIZING INTERVIEW MATERIAL
3.5.7 ANALYSIS AND CONCLUSION
3.6 METHOD APPROACH AND RESEARCH OBJECTS
3.7 CREDIBILITY
3.7.1 VALIDITY
3.7.2 RELIABILITY
3.8 CRITIC OF METHOD
4 FRAME OF REFERENCE
4.1 THE DECISION SITUATION
4.1.1 CHANGE
4.1.2 TIPPING
4.1.3 THE DECISION PROCESS
4.1.4 DISTRIBUTION CHANNELS
4.1.5 CHANNEL LEADER – POWER STRUCTURE
4.2 RELATIONSHIPS IN THE DISTRIBUTION CHANNELS
4.2.1 RELATIONSHIPS TO THE END CUSTOMER
4.3 ADDED VALUE
4.3.1 THE PURCHASING PROCESS
4.3.2 HIGH- AND LOW INVOLVEMENT PRODUCTS
4.3.3 CHANNEL FORMAT AND THE PURCHASING PROCESS
4.3.4 META INTERMEDIARIES
4.3.5 LEARNING RELATIONSHIP
4.3.6 INFORMATION CONTAGION
4.3.7 SUMMERY
4.4 FINANCIALS
4.4.1 INITIAL INVESTMENT ESTABLISHING AN INTERNET SITE
4.4.2 ANNUAL COSTS
4.4.3 METCALF’S LAW
4.4.4 SWITCHING COSTS/LOCK-IN
4.4.5 CONSUMER DOWNSIDES
4.4.6 EXPANDED INVESTMENT ANALYSIS
4.5 SUMMERY
5 EMPIRICAL FINDINGS
5.1 THE DECISION SITUATION
5.2 RELATIONSHIPS IN THE DISTRIBUTION CHANNELS
5.3 ADDED VALUE
5.4 FINANCIALS
5.5 NETWORK ECONOMICS
5.6 GENERAL ADVICE
6 ANALYSIS
6.1 THE DECISION SITUATION
6.1.1 CHANGE
6.1.2 DECISION PROCESS
6.2 RELATIONSHIPS IN THE DISTRIBUTION CHANNELS
6.2.1 RELATIONSHIPS TO THE FLYER/BUYER
6.3 ADDED VALUE
6.3.1 LEARNING RELATIONSHIP
6.3.2 VERTICAL FACILITATORS
6.3.3 META INTERMEDIARIES
6.4 FINANCIALS
6.4.1 INITIAL INVESTMENT
6.4.2 REOCCURRING COSTS
6.4.3 REVENUES
6.4.4 PROFITS
6.4.5 EXPANDED INVESTMENT CALCULATION
6.5 NETWORK ECONOMICS
6.5.1 TIPPING AND LOCK-IN
6.5.2 INFORMATION CONTAGION AND COMMUNITY
7 CONCLUSIONS AND RECOMMENDATIONS
7.1 FINDINGS IN THE AIRLINE INDUSTRY
7.1.1 THE DECISION SITUATIONRELATIONSHIPS IN THE DISTRIBUTION CHANNELS
7.1.3 ADDED VALUE
7.1.4 FINANCIALS
7.2 MANAGERIAL IMPLICATIONS
7.3 THEORETICAL REFLECTIONS
8 EPILOG
9 REFERENCES
Author: Grenblad, Daniel,Rosén, Pernilla
Source: Linköping University
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