Preview

Assignment Ryanair Case

Satisfactory Essays
Open Document
Open Document
295 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Assignment Ryanair Case
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

You May Also Find These Documents Helpful

  • Good Essays

    For the UK airline industry discuss the way in which its market structure affects the ability for firms to set prices and to make profits. (16 marks)…

    • 1075 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Ryan Air Case Analysis

    • 510 Words
    • 3 Pages

    1. Potential routes and customers: They started off by focusing on competitors’ most lucrative routes (Dublin-London route is reputed to be quite lucrative for both Aer Lingus and British Airways). They also took into consideration other untapped potential customers (Passengers from train and sea ferries).…

    • 510 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    This report documents work carried out in the course of a team project concerning the case study: “British Airways – USAir: Structuring a Global Strategic Alliance”. The project fulfills partial requirements of the Strategic Management course of Harvard Summer School and has been completed by a team of two students.…

    • 1324 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    According to a study generated by IBISWorld on the Annual Global Airline industry revenue for 2014, figures were indicated at $745bn with over 9,000 businesses worldwide. From such figures we can infer that global competition in this industry is inevitably high. Such competition is present and can be seen in examples like existing Airline companies such as Etihad and Emirates which offer similar services, packages and prices to its customers. What can be noticed however with the Airline industry is that the threat of new entrants is quite low - this is in large part due to the fact that the Airline business involves a billion dollar investment and high capital (Porter, 2008). It is also a service which although used frequently, in one customer’s life-time; the extent of use may vary depending on many situational factors such as seasonality, business or leisure purposes and so forth. In Australia, the same notion holds in terms of new entrants to the marketplace. Major players in the Australian Airline network include Qantas, Virgin and Jetstar.…

    • 1619 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    British Airways plc, widely recognised as the largest airline of the United Kingdom, has very recently signed an agreement with the Spanish airline, Iberia, for the merger of the two organisations. The merger agreement, when complete, will result in the formation of the world’s sixth largest airline, in terms of revenues. In Europe the merged airline will rank third in the pecking order, behind Air France-KLM and Lufthansa. The new company, valued at USD 7.5 billion, will be known as the International Airlines Group, even as both the Iberia and BA brands will continue to function as they have done till now.…

    • 1010 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    1. British Airways Plc (BA) founded in 1974, was in the control of government for thirteen years and went into privatization in 1987. The industry operates about 240 aircrafts, serving about 120 destinations throughout the U.K and Europe including the Middle East, Africa, South and North America, Asia and the Pacific. British Airways competes with various other airlines in the industry but still it has maintained its domination in various parts of the aviation industry in the United Kingdom and Europe as well. Its major competitor is Virgin Atlantic, with 10 percent market share in the airline industry in terms of kilometers logged in 2007. As the airline industries are struggling to survive in this Global Economic Downturn, which saw a huge decline in the number of passengers and flights over the years, British Airways future looks very promising. The Airline announces its aim in its latest annual report (British Airways, 2008) of becoming ‘World’s most responsible airline’.…

    • 1897 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    British Airways

    • 3116 Words
    • 13 Pages

    Furthermore, a thorough analysis of the marketing performance of British Airways will produce clear justifications and overall reviews as to how well the…

    • 3116 Words
    • 13 Pages
    Best Essays
  • Good Essays

    As mentioned before, Europe has around three thousand short-haul airlines meaning that the competition of easyJet can be very wide. Although, the main threat in terms of competition for easyJet is the low-cost Irish company named Ryanair. This company bases its competitive strategy in “cost leadership” approach (supply same service at lower cost) and is double the size of easyJet in terms of profit. It covers the main destinations of Europe offering around 27 different countries and main cities in every country. From 2011 to 2012 Ryanair had an increase in profit after tax of 25% leading to a new record of €503 million. On the other hand, easyJet in 2012 got €255 million of profit after tax (half of Ryanair`s profit).…

    • 528 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    In essay format, compare and contrast the pricing strategies of Ryanair and British Airways on the London to Dublin routes (maximum 500 words).…

    • 653 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    | |4p – (B) | |Airways on a major route. Students are asked to |…

    • 13307 Words
    • 54 Pages
    Satisfactory Essays
  • Good Essays

    Ryanair's strategy to launch airline with single fare no restriction ticket at price less than half of other players would certainly get it the market share quickly. However, the success of this strategy would require Ryanair to manage the expenses and keep costs low.…

    • 960 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Draw the extensive form of the game between Ryanair and the two incumbents. What are the different payoffs to Aer Lingus / British Airways (treat them collectively as one actor) for different strategic actions? Said differently, how costly would it be for A to retaliate against Ryanair’s launch rather than accommodate it?…

    • 357 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    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).…

    • 1083 Words
    • 5 Pages
    Good Essays
  • Good Essays

    There were a lot of problems that Ryanair had to face throughout a year; dealing with these problems led them to have a bad name within the press and media. As Ryanair entered the second half of 2007, fuel prices, compensation to passengers, terrorism and security, industrial relations and safety issues were big challenges. Ryanair’s motto was “we guarantee out customers no fuel surcharges, not today, not tomorrow, and not ever.” This began to cause a major problem when the fuel prices throughout the economy began to rise. Ryanair’s fuel costs represented 35 percent of operating costs in 2006, compared to 27 percent in 2005. Although, they promised their customers they would not be charged for rising fuel costs, the airline found themselves paying an absurd amount for barrels of oil. They paid $70 a barrel up to October 2006 and $73 to $74 dollars a barrel up to March of 2007. When it came to compensation to passengers, Ryanair’s compensation costs amounted to 200 million dollars annually. Not only were they fighting fuel prices but they were handing out money left and right to customers for cancellations of flights, meals, refreshments and hotel compensation. With September 11 terrorist attacks Ryanair had to cancel 279 flights in the days after the incident and had to refund 2.7 million dollars in fares to 40,000 passengers. With this, the lost 1.9 million dollars in reduced bookings, another downfall to the 9/11 attacks were increased insurance costs for all the commercial airlines, which meant that the ticket fares had to be increased so they did not suffer anymore financial loss. O’Leary, the CEO stated “the terrorists must be rolling around in their caves in Pakistan laughing at us.”…

    • 473 Words
    • 2 Pages
    Good Essays
  • Good Essays

    RyanAIR Case Study.

    • 604 Words
    • 3 Pages

    Using the five forces model, we can analyze Ryanair’s competitive market. The industry rivalry was high due to the deregulation of the airline industry. Competitors such as EasyJet, British Airways’ Go (which was created in an effort to gain market dominance, weed out competition, and eliminate the budget airline industry altogether), Virgin Air’s Virgin Express, and Debonair were all vying for market share in the budget sector of the industry. Because of such high rivalry, the buyers had high bargaining power and the sellers had low bargaining power. The threat of substitutes was low because apart from trains and buses, there were no alternative modes of transportation. The risk of entry into the industry was high because of the deregulation efforts by the European Union. Ergo, it is easily discernible that Ryanair was up against tough competition.…

    • 604 Words
    • 3 Pages
    Good Essays

Related Topics