Garuda Indonesia began its first commercial services under the name "Indonesia Airways". It was during a time of change and upheaval for the country, which was struggling to maintain its independence. The company's first aircraft, a DC3 named Seulawah (Good Mountain) was donated by the people of Aceh to help in the campaign for independence, and it played a vital role in the struggle. More recent, Garuda Indonesia along with the country as a whole has undergone a period of dynamic change. Garuda Indonesia has continued its efforts to improve its services and to provide safe comfortable and reliable air transportation services.

Through these efforts it is our sincere hope that Garuda Indonesia will remain a source of great national pride for Indonesia, and that we will continue to be one of Asia's most respected airlines. Now, Garuda Indonesia already serves all the national flight and international flight (Asia, Australia, Europe). Garuda has implied international standard for the operational activities according to ISO Standard 9001-100.

As the 1st airways in Indonesia, Garuda Indonesia serves more than 8 million people per year. Previously, Garuda Indonesia sold the ticket in old way (direct purchase to the office/ through travel agent). To be more competitive, Garuda Indonesia decided to make website (www.garuda-indonesia.com) to giving extra service to the customer.

In this competitive environment in flight industry, there are many competitors offer more affordable price for their ticket. Garuda has different business strategic to facing this kind of situation. According to the management, it will be better to serve their customer better and giving extra value than only giving lower price. And Garuda Indonesia Website is one of the ways to get customer satisfaction of Garuda Indonesia services.



Six key e-business strategic decision

Decision 1: E-Business Channel Priorities

E-Business strategic must be directed according to the priority of different strategic objective. Garuda Indonesia has some strategic objective, such as:

OBJECTIVE	STRATEGIES
Develop revenue from new geographical markets	Garuda create e-commerce facility for offering their service and assign their agent to this market.
Ensure retention of key account customer	For maintain the customer satisfaction through the service offered. Ex: Garuda has customer service for giving information and “contact us” menu for suggestion and complain.
Reduce time to market and costs for new product development	Use collaboration and project management tools. To develop good website, Garuda Indonesia uses credible tools and soft ware for project management and collaboration management.
Protect and increase efficiency of distributor and partner network	Create partner extranet and aim for paperless support. Ex: Garuda Indonesia’s website has Quick Links for its B2B (Distribution Partners, Corporate Partners, and E-Pronouncement)

In Decision 1, Garuda Indonesia is in second level of Strategic options for a company in relation to the importance of the Internet as a channel. Garuda Indonesia is in “Bricks and Click” level, which is mix of on and offline transactions and customer service. But, actually it is on the way to third level “Clicks” level, which in this level all transactions and customer service online. Garuda Indonesia is still in second level considering the customers who like the old way of purchasing ticket and the customer who doesn’t really understand of using technology and prefer telephone call or direct purchase.

There are several considerations that Garuda Indonesia has to make in choosing the steps for its development. So they also have to do “Right Channeling” as the approach to choose the appropriate channel.

Analysis of Garuda Indonesia “Right Channeling” application:

1. Sell to and serve SMEs through online channels.
   Garuda Indonesia using Internet for sales and service through an extranet to lower sales volume. In Garuda Indonesia website there is “Corporate Partner” Links that will be serve its corporate partner/ companies that want to use Garuda Indonesia service regularly.
2. Encourage customer to buy through online channels.
   With easy scheduling and booking menu, Garuda Indonesia try to make the easiest and fastest way to purchase ticket for all destination. It helps the customer to get ticket easier and faster without has to be worried that the ticket sold out. The price also will be lower rather than buying through travel agent.
3. Migrate Customer to web self-service.
   Customers are encouraged to use the web to manage their account. That why Garuda Indonesia has to login before purchase the ticket. The customer also can choose the date/ time/ place of arrival and departure by their selves. Besides, the customer also will be able to check their booking status from website.
4. Selective Service levels for different customer types.
   For Garuda Indonesia special customer (GFF), there are additional service that they can get by input their member number on the website.

Decision 2: Organizational Restructuring and Capabilities

Company should restructure or change its capabilities in order to achieve the priorities set for e-business. There are some choices that Garuda Indonesia took:

1. In-House Division
   The division is divided into several parts such as airlines:
   • Information (history, news, guideline for customer/ airport departure and upon arrival, before flying information, and onboard service)
   • Online Booking
     Customer can directly book the ticket according to the date and destination they wanted. They also can check all the available seats.
   
   
2. Strategic Partnership
   Garuda is having partnership with some companies to give more valuable experience to the customer. Some of Garuda Indonesia partners are travel agents such as Avia Tour, Smiling Tour, Vaya Tour, Anta Tour, and many more. Beside, Garuda also has corporation with banking company for the payment method. For example: BCA (ATM, Phone banking, internet banking, mobile banking, MANDIRI (ATM, Phone banking, internet banking, mobile banking), BNI (ATM, Phone banking), Lippo Bank (ATM, Phone banking).
   
3. Spin-off
   Garuda Indonesia also offered another service to the customer, but it divided the website according to the criteria. There are several website such as:
   
   • Garuda Frequent Flyer (gff.garuda-indonesia.com)
     For GFF (Garuda Frequent Flyer) members who can have better service. There are four membership types in the GFF program, namely GFF Regular, GFF Junior, Executive Card Plus (EC Plus) and Garuda Indonesia Citi Card (GIC Card).
   • Garuda Indonesia Training Center (training.garuda-indonesia.com)
     Special website for employees, which cover information and activities.
   • Garuda Indonesia Cargo Center (cargo.garuda-indonesia.com)
     For detail cargo information and services.
   • Garuda Sentra Medika (garudasentramedika.co.id)
     For medical information, this company also the first medical support to Garuda Indonesia customer.
   • Garuda Maintenance Facility (gmf-aeroasia.co.id)
     Website about an aircraft maintenance solutions provider for Garuda Indonesia technical support.

Decision 3: Business, Service, and Revenue Model

Business Model of Garuda Indonesia:
Garuda Indonesia does B2B and B2C with some programs:

1. E-Ticketing
   Customer can book the ticket according to their destination and flight day through website.
2. E-Procurement
   E-procurement Web sites allow qualified and registered users to look for buyers or sellers of goods and services.
3. E-Payment
   Corporate with some banks, Garuda Indonesia also has e-payment method which can enable customer easily pay the ticket.

Especially for corporate there are special menu “Quick Links” for Business to Business.

Revenue Model:
Direct Product Sales of Product and Service
Garuda Indonesia selling online ticket via e-ticketing

Commercial Model:
Garuda Indonesia uses Fix Price Sale for regular customer and use Loyalty-Based Pricing or promotions for GFF member.


Decision 4: Marketplace Restructuring

Garuda Indonesia has both Sell-side and Buy-side
Sell Side
There are 2 sell side strategy used by Garuda Indonesia:

1. Garuda Indonesia has disintermediation (sell direct strategy).
   Garuda Indonesia sells on-line ticket (Garuda Flight Service) to its customer.
2. Garuda Indonesia has Partner with new online or existing intermediary or retailer strategy.

Garuda Indonesia is having corporation with some travel agent in order selling its tickets.

Buy Side
Garuda Indonesia also tries to have good relationship with the vendor/ supplier. That’s why Garuda Indonesia has e-pronouncement. So Garuda Indonesia had disintermediation (buy direct) so it can get the best prices and quality from their vendor.


Decision 5: Market and Product Development

Garuda Indonesia had to do market and product development strategies to develop its business strategic. In this step Garuda Indonesia concern in:

1. Market Penetration Strategies
   To build customer loyalty from existing customer, Garuda Indonesia has several developments such as GFF Member Program. The loyal customer of Garuda Indonesia will get benefit and extra value if they submit as GFF member.
2. Product Development
   Garuda Indonesia use Internet to create product development strategies. The latest product development is E-Travel that consist several steps for giving customer extra value, which are easy booking, e-payment, e-ticketing, easy check in and enjoy flying.

Decision 6: Positioning and Differentiation Strategies

Garuda Indonesia use online facilities to enhance the positioning as follows:

1. Product Performance Excellence
   Garuda Indonesia has website to enhance the online product customization. In order to facing competitive market, Garuda Indonesia also has to develop the service in customer perception with having website.
2. Transactional Excellence
   The website of Garuda Indonesia provides dynamic availability information and price. So the website will provide update information every time due to price and flight schedule. So the customer can choose and book their flight according to the information provided.
3. Relationship Excellence
   The website of Garuda Indonesia provides features that enable customer to review online booking history with booking status menu.

Source :

• http://www.garuda-indonesia.com/
• http://etravel-ga.blogspot.com/
• http://www.balier.info/menu-garuda/links/links-html/links-indo-zwei.html
• http://mediaindonesia.com/webtorial/smarttravel/
• http://www.garudaholidays.com/
• http://gff.garuda-indonesia.com/tips