How costly would be for Aer Lingus and Brisith Airways to retaliate against Ryan Air’s launch rather than accommodate it? Currently‚ British Airways and Aer Lingus cannot compete in price at the range that Ryan Air is planning to operate. I believe that British Airways and Aer Lingus would be better off maintaining current prices and differentiating through the service that they offer‚ in the same way that they are. The current cost breakdown offered by the case shows that if British airways
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profit/sales revenue) × 100 Gross profit margin ratios of BA and Ryan air is shown below: It can be seen from above table that Ryan air performed well compared to BA. Though the values over three years slightly fluctuate but they were generating good profitability by improving their sales and proper balancing and control of fuel costs which has almost rise
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Ryanair’s launch strategy seems it will be successful because of their ability to enter the market without setting off alarms with competitors (BA & AL). They plan to do this by entering the market slowly with only one route (Dublin-London)‚ a 44-seat turboprop as opposed to a large 747 and by servicing only secondary airports. This strategy is key because it does not confront the major airlines directly and will allow Ryanair to build its brand‚ knowledge of the industry and a customer base without
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Macro-environmental analysis the macro-environment describes all factors which influence the company as a whole but are out of their direct control including wider social‚ political and economic factors (Hooley‚ Saunders‚ Piercy‚ 2004). The analysis of those factors is therefore often known as Pest analysis (Johnson‚ Scholes‚ 1999). Since the airline industry is very much influenced by changes taking place in the environment and has undergone rapid and dramatic changes during the last decades
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Ryan Air Case Study Strategic Management Names: Table of Contents Step 1: Identifying the positioning questions 1.1 Summary of the case pg. 2 1.2 Main Questions & Problems pg. 3 1.3 How was the strategy developed? pg. 3 Step 2: Gathering & analyzing the facts 2.1 Ryan Air Environment Analyses pg. 3 2.2 Ryan Air Strategic Capability Analyses pg. 5 2.4 Ryan Air Competitive Strategy & Business Model Analysis pg. 5 2.5 Ryan Air Stakeholder expectations & purposes Analysis
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Report on Ryan Air 1. Terms of reference 2. Procedures 3. Findings 3.1 External analysis 3.1.1 Legal issues 3.1.2 Competition 3.2 Strengths 3.3 Weaknesses 3.4 Opportunities 3.5 Threats 4. Conclusions 5. Recommendations 6. Bibliography 1. Terms of reference This report is an analyse of the low cost airline Ryan Air. It is going to look at the external factors influencing the industry and analyse the internal factors using a SWOT analysis. The report
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Comprehensive strategic analysis and evaluation of this business enterprise which answers the following questions 1. In-depth environmental analysis of the European Airline industry and discuss the implications for the budget sector and especially for Ryanair. 2. An integrated understanding of the functioning of a company – its human and technical operations‚ leadership‚ customer relationships and financial structure. 3. Implications of the internal functioning to create viable strategic positioning
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Ryan Air 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. According to (2001) Ryan Air was the first low-cost‚ nor frills airline that had an impact on the European airline industry. When launched in 1985 targeted the Irish ethnic market between Ireland and the United Kingdom by offering a more or less traditional type of service with a two-class cabin but at significantly
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Case study 2.5 –Ryan air: Flying High in a competitive Atmosphere 1. How important is the role of operation in achieving competitive advantage at Ryanair? Ryanair competitive advantage is based on cost leadership strategy‚ maintaining the lowest prices among low-cost airlines (Haberberg and Rieple‚ 2008). In 2011‚ Ryanair became the most profitable low cost carrier in the world (www.ryanair.com). How operations support competitive advantage of Ryanair is measured by five performance objectives:
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Fares Airline Strategic Analysis / 222621-0004 Strategic Management dr Maria Aluchna Ivan Martinov № 50170‚ e-mail: imartinov@gmail.com S. M. Sabbir № 50185‚ e-mail: ssmm0002@student.umu.se Assignment | 222621-0004 Strategic Management | Fall Semester 2010 | SGH Table of Contents 1. 2. Introduction ........................................................................................................................................... 3 Strategic Analysis ........................
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