Entrepreneurship and Innovation Andrea Castillo C Julia LeuchtgensAdriana Lima Case Study: Ryanair 1) What’s your assessment of Ryanair’s launch strategy? In 1986‚ the Ryan siblings are getting ready to start competing against British Airways and Aer Lingus on the Dublin-London route. This route was one of the most traveled air routes inEurope‚ which meant that Ryanair was taking a big risk by deciding to enter this market. At the moment the airline passenger market was a complex one‚ since the governments
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DogFight over Europe: Ryanair Global Business Strategy What is your assessment of Ryanair’s launch strategy? Is it sensible? Will it succeed? We believe that Ryanair’s launch strategy was successful and we will justify this statement with information that was provided in the Ryanair’s case. To begin with‚ Ryanair airline was not that hard to establish for Cathal and Declan Ryan because of the capital that Ryanair’s founders managed to get from their father‚ Tony Ryan‚ who was a co-founder of
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Dogfight over Europe: Ryannair Dogfight over Europe: Ryannair 1- What’s your assessment of Ryanair’s launch strategy? Nowadays‚ the strategy of the airlines companies it’s easier to understand than before. What we want to say is that‚ at the beginning‚ the governments supported the Airlines; ant hey had the monopole of the flies. So they can fix the price but they could also fix the service that they were going to present to the customers. As we see in the
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6. What are the key success factors in the European airline industry? ---When addressing this question we find it worthwhile to remind students that a KSF is what any firm in the industry must do to be successful. Based on this definition‚ the following KSF’s apply to the European airline industry: (1) A reputation for safety – This is a fundamental KSF for any segment of the airline industry. If a firm is not viewed as safe by potential passengers‚ they will not use the carrier. (2) Offering
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airlines routes (near 80% of its passengers passed to London Heathrow Airport). Ticket prices were offered accordingly to services desired‚ ranged from first class to economy. 2) Aer Lingus: Aer Lingus specialized on routes between Ireland and Britain. Liberal bilateral agreement between these two countries1 last until Aer
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and amenities that were comparable to what is provided by Aer Lingus and British Airways. ------------------------------------------------- 2. Evaluate Ryan Air’s entry strategy: When entering the market‚ the Ryan brothers took into account these factors: 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
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for Aer Lingus and Brisith Airways to retaliate against Ryan Air’s launch rather than accommodate it? Currently‚ British Airways and Aer Lingus cannot compete in price at the range that Ryan Air is planning to operate. I believe that British Airways and Aer Lingus would be better off maintaining current prices and differentiating through the service that they offer‚ in the same way that they are. The current cost breakdown offered by the case shows that if British airways and Aer Lingus were
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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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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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saturated market‚ which competed with two strong companies owned by the government and with great experience: Aer Lingus and British Airways (who also had come together to improve their perform). And also entered the market independent carriers Such as British Midland. Another important factor was that the Dublin-London route was the only one that provided reasonable returns for Aer Lingus‚ so it was not going to let customers easily take him by force‚ and Ryanair will be difficult without a really
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