Dogfight Over Europe: Ryanair (A)| Case Analysis
Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14-seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low-fare segment market. It initiated service from London’s secondary airports. In terms of competition, Waterford and Gatwick didn’t pose any challenges.
In 1986, Ryanair gained a license to operate between Dublin and Luton, another secondary airport of London. In that year, they announced the commencement of service from Dublin and London. On this route, British airways (BA) and Aer Lingus were already operating. This route is considered to be the lucrative and competitive route in Europe. Ryanair claimed to give first-rate customer service at I£ 98. The price posed by Ryanair was cheaper as compare to price posed by BA and Aer Lingus.
Ryanair was founded by Cathal and Declan Ryan with the help of their father, Tony Ryan, who invested I£ 1 million. Ryanair primarily targets fare conscious and business travellers who might otherwise not travelled at all or use other methods of transport such as ferries or trains.
Using triangulation technique, we shall be analysing the case on viewpoints of * Ryanair – Market strategy against existing air carriers * British Airways – Defending market share
* Aer Lingus – Market Challenger strategy
Ryanair – Market strategy against existing air carriers:
To capture the market share from the market leader British Airways and Market Challenger Aer Lingus, it is important for Ryanair to identify it’s competitor’s strengths and weaknesses. | Customer Awareness| Product Quality| Product Availability| Technical Assistance| Selling Staff| Price| British Airways| E| G| E| E| E| P|
Aer Lingus| F| F| P| G| G| F|
*E = Excellent G = Good F = Fair P = Poor
British Airways is...