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 sells its tickets only on its website www.ryanair.com, its competitive advantage is its offer: very cheap tickets to travel all over the Europe.
However this kind of low-cost company has both positive and negative repercussions on the airline sector.
And what tarnishes the most the company’s image is its CEO Michael O’Leary an outspoken person who is not afraid to say and make what he thinks to cut the prices of its plane tickets.
To answer these questions I found my sources in the database Business Source Premier.
CONTENTS
1. Introduction 4
2. The importance of e-business for RYANAIR 5
a) RYANAIR: an e-business company… 5
b) With a major competitive advantage… 5
c) Which allows offer a high customer value. 6
3. Impact of low-cost companies (like RYANAIR) on European airline industry 7
a) Positive impacts 7
b) Negative impacts 7
4. Critical and controversial issues 9
5. Conclusion: Is the strategy of RYANAIR sustainable? 10
6. Suggestions for future research 10
7. References 11
1. Introduction
Nowadays the air transport is a way of transporting which seems safer according to the statistics. It has a growth, from the 60s, which the rhythm is superior to the world economy ones.
From 1990 till 2003, the traffic increased on average by 2, 7 % a year in number of passengers and by 2,8 % a year in number of flights. We can underline that this growth is sharply more important within the European Union than in the United States. The