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
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CORP 2463 MANAGEMENT AND STRATEGY Report of Ryanair Management issue – Poor Customer Service P12006777 TUTOR: George Kokkindis DATE:06/12/2013 Executive Summary This report mainly evaluates the organizational culture and leadership style of Ryanair with the management issue – poor customer service and in relation to management theories. As one of the best low cost airlines‚ Ryanair consistently focus on cost-cutting but at the same time reveal many problems on its Human Resources
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Examining Ryanair’s Launch Strategy Ryanair was set up in 1985 by Cathal and Declan Ryan‚ as one of the first independent airline servicing the Dublin-London (Luton) route. Ryanair launched its service focusing on delivering first-rate customer service and lowest – simple‚ single – fare @ I£ 98‚ compared to I£ 208 full fare and I£ 99 discounted fare offered by competition‚ Aer Lingus and British Airways. Ryanair Executives believe that Aer Lingus and British Airways’ flights are typically 60-70%
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Assessment of Ryanair’s launch strategy One possible reason why Ryanair chose to enter the Dublin-London route is because the route was reputed to be quite lucrative for both Aer Lingus and BA. It is easy to see why this route is lucrative because the least expensive fare for both carriers were priced at I£208 but operating expenses per passenger was only I£155.1. Ryanair’s publicized fare of only I£98 will help it to attract more passengers than both carriers given that it cost only half the
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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
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features(such as reliability‚ clarity of fees‚ availability of fares‚ on-board comfort‚ service‚ etc.) under control‚ which Ryanair cannot handle in various ways‚ resulting in negative thoughts of customers about this company. 3.2 Related problems: Ryanair accumulates ‘hidden’ taxes and other fees‚ restricted customer services‚ and deceiving advertisements. Ryanair imposes charges for anything from checking bags into the hold‚ up to £40‚ to changing the name on your ticket‚ for £110
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What do your overall assessment of Ryanair’s strategy? Although the strategy of Ryanair seems sound‚ I don’t expect it to succeed on the Dublin-London route. By matching service and amenities but pricing well below Air Lingus and BA‚ Ryanair stands to steal customers up to capacity of it’s 44-seat turboprop 4 times a day. This loss of customers‚ though small at this point‚ could likely elicit a strong response from both AL and BA. The Dublin-London route represents one of the few lucrative routes
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Ryanair Internal analysis Resources and capabilities In 2006 Ryanair was in ownership of a total of 103 Boeing 737 aircraft‚ and also a set order to increase this number by 138 in the next six years. Currently its fleet flies out from 127 destinations. Ryanair replaced its old fleet with new more efficient and environmentally friendly aircraft and has the youngest fleet of any major airline with an age of just 2.4 years. The new aircraft were effective in increasing efficiency as there was no
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Balance scorecard Definition Balance scorecard also known as BSC. BSC was developed by Robert Kaplan and Norton in the early 1990s. Balance scorecard comes from two words namely balance and scorecards. Balance mean a balance between financial and non-financial performance‚ short-term performance and long-term performance‚ the performance of which is internal and external. When the scorecard also mean that the card is used to measure one’s performance score. At first scorecard used to measure performance
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departments The balanced scorecard measure more than just the financial performance of the company Critical factors that meeting the goals: 1. Customer satisfaction: market share and repeat business 2. Operational efficiency: the number of produced per hour and the number of warranty claims received. 3. Employee excellence: employee training hours‚ employee satisfaction surveys 4. Financial Profitability: revenue growth rate and earnings per share. The balanced scorecard provide holistic approach
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