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
Premium Airline British Airways Southwest Airlines
transportation for this route. Ryanair recognized the profitability of the Dublin-London route‚ which was the only route that was profitable for Aer Lingus. While the direction of British Airways and Aer Lingus‘business models diversified worldwide‚ Ryanair saw an opportunity to streamline its costs by specializing on this specific route. Ryanair introduced a low cost‚ unrestricted fare‚ which undercut BA and Aer Lingus by £110 per ticket‚ while still focusing on first rate service. Ryanair was able to offer
Premium Aer Lingus Profit Airline
RYANAIR Introduction This essay is initially going to analyse the LCC (Low Cost Carrier) industry and subsequently focus on Ryanair‚ the world ’s largest low cost international carrier (figure 1). The first part of the assignment is going to apply Porter ’s five forces to the above-mentioned industry‚ then it will look at how the company competes in such environment‚ referring to Porter ’s generic competitive strategies. Finally it will analyse how the company delivers on these competitive
Premium Strategic management Porter generic strategies Porter five forces analysis
COMPANY PROFILE Ryanair Holdings (Ryanair or ‘the company’) operates low fare scheduled passenger airline serving short haul‚ point to point routes between Ireland‚ the UK‚ and Continental Europe‚ as well as Morocco. It is headquartered in Dublin‚ Ireland and employs about 8‚560 people. The company recorded revenues of E3‚629.5 million ($4‚796.7 million) during the financial year ended March 2011 (FY2011)‚ an increase of 21.5% over FY2010.The operating profit of the company was E488.2 million ($645
Premium Tourism Airline
Case #7-The Apollo Group(Report) I. Analysis-Issues: a. The young people drop out the programs because the doubt in the education quality. b. The Apollo group education method is contrasted to the conventional mechanism of education being summited to criticism by other universities. c. The young students are more interested in enrolled into traditional education. d. Companies give financial help to the adult working students to pay their
Premium Economics Youth Education
Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline services between Ireland and the UK‚ as an alternative to the then state monopoly carrier‚ Aer Lingus. It started out a full service conventional airline‚ with two classes of seating and leasing three different types of aircraft. However despite growth in the passenger volumes financial problems were of a growing concern. In its fight to survive the airline went through a dramatic restyle to become Europe ’s first
Premium Airline Southwest Airlines Low-cost carrier
Case study on low cost airlines (RYANAIR) Preliminary questions: 1. What are your first impressions regarding Ryanair? 2. How would you characterize its marketing strategy? Ryanair (ISEQ: RYA‚ LSE: RYA‚ NASDAQ: RYAAY) is an Irish low cost airline‚ with headquarters at Dublin Airport and its largest operational bases at Dublin Airport and London Stansted Airport. Ryanair operates 182 aircraft on 729 routes across Europe and North Africa from its 31 bases.[1] The airline has been characterised
Premium Ryanair
which is focused on a S.W.A.T. analysis on Ryanair‚ was fully based on internet web sites. For full information‚ refer to the bibliography at the end of he report. 3. Findings 3.1 Strengths a. Leadership in the low-cost sector • “Ryanair was Europe’s original low fares airline and is still Europe’s largest low fares carrier. Currently the company carries over 35m. passengers on 325 low fare routes across 21 European countries”( Ryanair). As a matter of fact Ryanair is currently the largest low-cost
Premium Low-cost carrier Airline Customer service
implement due to conflict between cost minimization and cost of value-added differentiation. Post-Porter(1980) research indicates companies pursuing differentiation/low-cost strategies may be more successful than companies pursuing only one strategy. (RyanAir/EasyJet/Dell) low cost strategy rarely able to provide a sustainable competitive advantage - firms end up in price wars. best cost strategy is preferred - best value for low price. CLS - winning market share by appealing to cost-conscious/price-sensitive
Premium Porter generic strategies Strategic management Marketing
In April 1986‚ the Ryan brothers announce that Ryanair will offer service between Dublin and London‚ a route dominated by Aer Lingus and British Airways. AL and BA offer a range of tickets with varying restrictions and varying classes of service‚ but the least expensive‚ unrestricted round-trip fares were priced at IL208‚ far higher than the IL98 that Ryan Air announced. Ryanair’s strategy to launch a single far no restriction ticket at such a low price will gain market share quickly as well as possibly
Premium Aer Lingus Ryanair