Competitor analysis While taking a closer look at the competitors in the European airline market it is visible the there are two main groups of airlines. One group consists airlines with a low cost strategy‚ and the other group are the mainstream carriers. This last group exists of a few companies who have severe problems with the structurally sickness of this industry. Only Lufthansa made a net profit. BA‚ Air France-KLM and Scandinavian Air Systems all made severe losses‚ due to declining traffic
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10 « RYANAIR. FLY CHEAPER » BSS008S-3 Applied E-Business ASSIGNMENT 1 (10 December 2010) TOPIC N°1 ABSTRACT This report presents the e-business company RYANAIR. Throughout it we are going to find what type of competitive advantage the company pursues‚ what factors help it creating a superior customer value‚ what impacts this kind of company has on the whole industry and finally what are the controversial issues about RYANAIR. Mainly‚ RYANAIR is a low-cost airline company which
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Case 5 - A Dogfight over Europe: Ryanair Key Issue: The key issue in this case is that Ryanair’s competitive advantage is based on offering customers an easy-to-imitate low price. While it may be operationally effective‚ they have no strategic positioning. Supporting Arguments: Ryanair’s low prices were not a strategy to gain market share. They were simply out of necessity to stay afloat as their sales plummeted. However‚ as their prices dropped to increase sales‚ they did manage to generate
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Ryanair’s average flight represents just 442 miles which is the equivalent of average length of passenger haul. This is a relatively small number that can be explained by the fact that Ryanair does not offer transatlantic flights‚ but focuses exclusively on routes between Ireland‚ the UK and Continental Europe. If one divides the number of employees at period end by the employees per aircraft served at period end one receives the number of airplanes‚ in this case 41‚38 airplanes. Furthermore one
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rights at certain airports. • For instance in Heathrow Airport in London‚ British Airways can still control a slot although the flight number for this slot has been terminated and is therefore technically vacant. • This is rarely a problem for LFA ́s though‚ as they rarely use these large hubs such as Heathrow‚ London or Schiphol‚ Amsterdam‚ because they are often congested due to the high frequency of long-haul flights and have high airport fees‚ although Easyjet uses the latter as one of its main
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Ryanair Case Analysis 1. Porter’s Five Forces Analysis Substitute: In this industry‚ there are high substitution power because if one airline decides to raise prices then customers are going to switch to a cheaper airline company. The majority of passengers are price sensitive and have the option of taking other forms of transportation such as the rail or ferry. Customers are willing to travel longer if they can pay for a cheaper fare. The round fare for ferry and rail is 55
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BACKGROUND ANALYSIS In 1986‚ upstart airline Ryanair proposed to expand its business to the London-Dublin route‚ in direct competition with British Airways (BA) and Aer Lingus (AL). While BA focused primarily on business passengers‚ and was profitable on the London-Dublin route relying on travel agents being responsible for 83% of its scheduled revenues‚ AL was loosing money and was in business primarily due to Irish government support. However‚ international routes accounted for 2/3rd
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Conclusion | 9 | References | 10 | Word Count: 2061 Introduction Ryanair was founded in 1985 by the Ryan family‚ which was headed by Tony Ryan. It was the first budget airline in Europe‚ modeled after the successful US carrier‚ Southwest Airlines. It was founded to provide scheduled passenger airline services between Ireland and the UK‚ as an alternative to then state monopoly carrier‚ Aer Lingus. At the beginning‚ Ryanair was a full service conventional airline‚ with two classes of seating‚
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opportunities‚ it is also essential to analyze the internal environment of the company‚ to identified the types of activities that form the production process. An analysis tool that helps identify what are the key activities of the production process of Ryanair and which are auxiliary or complementary is the analysis of the value chain (value chain). The value chain‚ in fact‚ lets to consider the enterprise as a system of value-generating activities. This value is defined as the price that the consumer is
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Wenyan Liu Individual Assignment #1 4/5/2015 MBC619 Corporate Strategy Boeing Corporate-level Strategies Analysis and Recommendation Modified parts are underlined Two main business units of Boeing are “Boeing commercial airplanes and Boeing defence‚ space & security‚ in which the products and modified services are based on providing commercial and military aircrafts‚ satellites‚ weapons‚ electronic and defence systems‚ launch systems‚ advanced information and communication systems‚ and performance-based
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