Assignment Ryanair Case
1-What is your assessment of Ryanair's launch strategy?
- Will it be successful? Or is it fatally flawed? Why?
- Does Ryanair's strategy give it a competitive advantage over the rivals? 2- How do you expect Aer Lingus and British Airways to respond? Why? - Focus on competitor analyses of Aer Lingus and British Airways. What does Aer Lingus want to achieve? What does British Airways want to achieve? - What are the reasons to expect vigorous retaliation from Aer Lingus? From British Airways? - What are the reasons to expect accomodation from Aer Lingus? From British Airways? 3- How costly would it be for Aer Lingus and British Airways to retaliate against Ryanair’s launch rather than accommodate it? Make computations and state your assumptions. This implies that you must identify several scenarios about incumbent reactions. We expect you to come up with precise figures about expected profits (or losses) for each scenario you will be able to identify and to be ready to explain how you computed these figures. Note that the easiest way to identify potential scenarios (and make the associated computations) is to treat Aer Lingus-British Airways as a single entity with a 100% market share on the Dublin-London route. 4- Can the Ryan brothers make money at the I£98 fare they propose? Make computations and state your assumptions. This means that you have to calculate Ryanair’s profit figures with a fare of IL98. This will require several assumptions. You should use the information that is in the case to make your computations because the focus is to look at Ryanair at the time of the case. It means you will have to make some assumptions because some data is missing like in real life.
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