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Strategic alliance

In 1995, JAL formed a strategic alliance with American Airline (AA), agreeing to link their computerized reservations systems and to serve as agents for each other’s cargo businesses. 3 years later, JAL increased the number of alliances among the international carriers including British Airways, Cathay Pacific, and Iberia Airlines. The purpose of this act was to expand its business based on cooperation with international companies.

E-commerce

JAL agreed to link their computerized reservations system with American Airlines and they launched their Web site in 1995. JAL’s e-business strategy was the desire to position itself at the leading edge of e-commerce to gain first-mover advantage in the field. A more specific goal was to use Web-based e-commerce as a means of further developing its domestic travel business. JAL’s first initiative was to develop a Web-based ticket information and reservation system that allows more convenience for customers including making reservations as well as viewing information of their flight schedules. 참고문헌 삽입 For a period in 1997, their Web site was the second most popular site in Japan, receiving huge number of visitors a day. As a result, JAL was able to operate its business with lower cost with high-efficiency in time management and overall business cost.

Information Technology in JAL’s business

JAL implemented the use of Sabre, AXESS, and EDI systems.

Sabre: When JAL and AA formed an alliance, agreeing to link their computerized reservations systems, they first used American Airlines’ Sabre as JAL didn’t have much technology to build its own computerized systems.

AXESS: JAL’s management witnessed increased competitiveness resulting from the development of computerized reservations systems by its American counterparts and they felt it necessary to develop their own system for competitive advantage in evolving e-commerce market in the field. So later, they established AXESS with newly formed...