Instructor’s Manual 368 © Pearson Education Limited 2005 CASE TEACHING NOTES Ryanair – The Low-Fares Airline Eleanor O’Higgins 1. Introduction Ryanair was the first budget airline in Europe‚ modelled after the successful US carrier‚ Southwest Airlines. The case offers students the opportunity to evaluate the strategy of Ryanair against the backdrop of the European airline industry and the burgeoning budget sector. Business students at all levels enjoy this case and relate to it‚ since air
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decrease Air asia’s customer loyalty. Most of the travelers prefer low cost. New competitors which want to come in the industry have to spend little to compete with Air asia. High capital requirement. The industry of airline needs large volume of start-up capital. The cost of setting up of offices‚ buying or leasing aircraft‚ hiring pilots and other staffs like air stewardess and etc incur a high start-up cost. Thus‚ the threat is low for Air asia. Different product offered. Air asia offers different
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underpinning the economics of a profit maximizing firm Neoclassical model of the firm states that organization will have the main objective of maximizing its profit within a given period of time. Maximum profit was achieved at the output at which marginal cost is equal marginal revenue. There are several factors which need to be considered when talking about the profit maximizing firm: 1. The assumption of the profit maximizing firm is that there is no segregation between managers and owners of the firm
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Strategic Discussion on U.S Airline Industry Discussion Question 1: Use the model of the general environment (Chapter 2‚ Table 2.1) to evaluate the opportunities and threats facing the U.S. airline industry and Southwest Airlines in particular. What are the key opportunities and threats? The health of the overall U.S airline industry is still tenuous in-spite of the passenger traffic volumes returning to pre-9/11 levels. A survey estimated that from 2001 through 2003‚ the US airline industry
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bankruptcy? One of the biggest reasons for Ryanair’s downfall was that it tried to position itself as a low fare airline along with having first-rate services. It kept an unrestricted fare while still focusing on the best customer service and relationship. Although the low price was able to get Ryanair the customer base it needed‚ the increase in sales was not enough to make up for the cost of the amenities that Ryanair promised to its customers. This business model did not do sell well and proved
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Statistics 82-83 9.0 Recommendations 84-85 10.0 Conclusions 86 11.0 References 87 CHAPTER 1 EXECUTIVE SUMMARY 1.0 EXECUTIVE SUMMARY AirAsia needs no introduction in ASEAN‚ where it is the leading low-cost carrier‚ connecting people and places across 132 routes‚ 40 of which are offered by no other airline. In 2010‚ the Group‚ which includes
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COLOGNE BUSINESS SCHOOL (CBS) Case Study: Ryanair The future of the leading low fares airline Term paper for Transnational Management Summer Semester 2014/2015 Lecturer: XXX Anton Wischnewski BA12 in International Business / International Trade Student-No. XXX Table of Contents 1 Introduction ....................................................................................................2 2 Overview of Ryanair ..........................................................................
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Information System ( MIS )‚ specifically its online reservation system to gain competitive advantage. And also discuss why and how important is MIS to Air Asia in running its business. 2. The Important of MIS Low Cost Carriers (LCC) business model is based on no frills service. This means that cost savings is a critical success factor in their operations. Air Asia is no different. And Aie Asia uses MIS to runc this LCC business model. So‚ what is MIS? MIS is the useful information to support management
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in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia‚ Thailand‚ Indonesia‚ Macau‚ China‚ Philippines‚ Cambodia‚ Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia‚ and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel. 2.0 External Environment Analysis
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ABSTRACT Our group will do a report about easyJet’s case-study. First of all‚ we will get information about EasyJet from the textbook and the Internet. Secondly‚ we will do the SWOT analysis and find out the reasons for EasyJet’s success by making marketing mix. Thirdly‚ with all the information‚ we use them to answer 5 questions about the case-study in the text-book. Finally‚ we apply these experiences to our job in the future. TABLE CONTENT ABSTRACT i TABLE CONTENT ii PICTURE CONTENT
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