Operation05341_02_ch02_p021-044.qxd 9/25/07 10:01 AM Page 21 CHAPTER 2 OPERATIONS‚ STRATEGY AND OPERATIONS STRATEGY INTRODUCTION An organization’s operations function is concerned with getting things done; producing goods and/or services for customers. Chapter 1 pointed out that operations management is important because it is responsible for managing most of the organization’s resources. However‚ many people think that operations management is only concerned with short-term‚ day-to-day
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Chapter 2 Characteristics of the Airline Industry The real difficulty in changing any enterprise lies not in developing new ideas‚ but in escaping from the old ones. John Maynard Keynes 2.1 Introduction In recent years‚ the European airline industry has exhibited impressively dynamics. The sector has gone through a drastic change on both the supply and the demand side. Unlikely in other industries‚ the driving forces governing the recent changes do not depend mainly on technological factors
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and other supply and demand factors can be analysed closely in order to evaluate the reasons for increased growth in air travel. In the recent years there has been a significant increase in the number of low cost airlines‚ including Ryanair and Easyjet‚ with Ryanair owning 19% of the national market of air transport. This has therefore increased the supply of flights. Further this leads to increased competition within the market and hence a fall in relative prices of air fares. A fall in price
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1 Table of Contents I. Ryanair Profile ...................................................................................................................................... 3 II. External Analysis.................................................................................................................................. 5 2.1. Porter’s five forces ........................................................................................................................ 5 2.2. PESTLE Analysis
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IBERIA CASE STUDY Iberia was founded on June 28‚ 1927 by Horacio Echeberrieta. It was not only Spain’s first airline‚ but also the first to fly between Europe and South America (as of 1946)‚ the first to establish a walk‐ on air shuttle service (between Madrid and Barcelona)‚ and the first in Europe to offer an international frequent flyers customer loyalty programme (Iberia Plus). In 2001‚ on April 3‚ Iberia’s privatization process was completed‚ when its shares were listed for the
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Issued: October 10‚ 2006 Contact: Jay Sorensen‚ 414-961-1939 IdeaWorksCompany.com Europe’s Top 4 Low Cost Carriers Generated 470 Million Euros (US$593 Million) From Non-Ticket Sources in 2005 But U.S. frequent flier programs produced revenues estimated at 2.5 billion Euros (more than US$3 billion) and better per passenger results. 1 Revenues from non-ticket sources‚ which are called ancillary revenues‚ have become an important financial component for low cost carriers (LCCs) in Europe and throughout
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industry‚buhalis‚2004). No-frills airlines are using their web sites to attract and communicate directly with consumers (E. Jorgensen‚ Southwest Airlines: Success Story).This enables them to bypass travel agencies and their commissions. In 2003‚ both Easyjet and Ryanair achieved more than 92% of their bookings through their web sites‚ whilst Southwest sold 50% of its tickets on its web site (eAirlines: strategic and tactical use of ICTs in the airline industry). Researching the information is a very
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E-commerce Critical Analysis The growth of the Internet and the electronic commerce is developing with a great speed in the last years. In this line‚ the increase of the competence is bringing a great interest in examining the factors of acceptation and success of a website. Thus‚ many studies have emphasizing the design of a website as a critical aspect for the achievement of a successfully virtual store. Concretely‚ the aim of this study is to identify the key factors that influence the
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It will be difficult to maintain this advantage for Ryanair even though they continue to provide low fares. Ryanair is one of the most popular budget airlines available however it faces competition from other budget airlines such as EasyJet and Wizzair. Ryanair use secondary destinations to cut down cost and maximise profits. The handling costs will be cheaper and Ryanair will be able to expand on their extra services such as transportation to the main destinations‚ thus increasing sales for Ryanair
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friendly service”(Flybe‚ 2008). Eye For Travel (2008) reports that Flybe’s financial reports for the year-ending 31 March 2008 show 46% increase in turnover to £535.9m. There was also a profit before tax of £53.4m. Flybe’s competitors such as EasyJet‚ Ryaniar and BMI Baby have not had such positive figures in these tough economic conditions. I have included in this report the capability analysis of Flybe‚ the stakeholders analysis and how Flybe can utilise its resources to gain competitive advantage
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