Pricing strategy is an idea implemented into a plan to get the most favourable price for a service or product that will give way the highest profit. Pricing is one of the most important elements of the marketing mix‚ as it is the only mix‚ which generates a turnover for the organisation. The remaining 3p’s are the variable cost for the organisation. It costs to produce and design a product; it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing
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Case 5 - A Dogfight over Europe: Ryanair Key Issue: The key issue in this case is that Ryanair’s competitive advantage is based on offering customers an easy-to-imitate low price. While it may be operationally effective‚ they have no strategic positioning. Supporting Arguments: Ryanair’s low prices were not a strategy to gain market share. They were simply out of necessity to stay afloat as their sales plummeted. However‚ as their prices dropped to increase sales‚ they did manage to generate
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Assignment 3: Pricing Strategy and Channel Distribution 1. Determine and discuss a pricing strategy (Penetration and Skimming) The penetration pricing strategy approach is what we are going use to represent our SONO water filter products in today’s market. Since it serves as many customers as possible representing different valua-tions‚ this pric¬ing model will be our best option. The advantage this approach holds for us is the low volume customers‚ who presumably have a relatively lower valu¬ation
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Ryanair’s average flight represents just 442 miles which is the equivalent of average length of passenger haul. This is a relatively small number that can be explained by the fact that Ryanair does not offer transatlantic flights‚ but focuses exclusively on routes between Ireland‚ the UK and Continental Europe. If one divides the number of employees at period end by the employees per aircraft served at period end one receives the number of airplanes‚ in this case 41‚38 airplanes. Furthermore one
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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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Business Strategy Prof. Sebastian Raisch Mr. Jonathan Schad MBA Session 2014 HEC University of Geneva RYANAIR- The Low Fares Airline: Whither Now? Student: Roi Lavi May 5th 2014 1. Evaluation of the Competitive Situation in the Industry1: 1/5 The Bargaining Power of Low-Fare flight ticket buyer is LOW-MEDIUM: The low cost airline company’s buyers are mostly individual passengers that book 99% of tickets by Internet‚ without agents or other third parties and thus there is no dominant
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opportunities‚ it is also essential to analyze the internal environment of the company‚ to identified the types of activities that form the production process. An analysis tool that helps identify what are the key activities of the production process of Ryanair and which are auxiliary or complementary is the analysis of the value chain (value chain). The value chain‚ in fact‚ lets to consider the enterprise as a system of value-generating activities. This value is defined as the price that the consumer is
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Conclusion | 9 | References | 10 | Word Count: 2061 Introduction Ryanair was founded in 1985 by the Ryan family‚ which was headed by Tony Ryan. It was the first budget airline in Europe‚ modeled after the successful US carrier‚ Southwest Airlines. It was founded to provide scheduled passenger airline services between Ireland and the UK‚ as an alternative to then state monopoly carrier‚ Aer Lingus. At the beginning‚ Ryanair was a full service conventional airline‚ with two classes of seating‚
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Australia. Australian Journal of Management 25(2)‚ 119-143 Slater‚ S Webster‚ F. E. Jr.‚ (1988) Rediscovering the marketing concept. Business Horizons 31 (May-June)‚ 29-39 Wrenn‚ B Ryanair‚ Available at: http://www.ryanair.com/site/EN/ Quinn‚ Eamonn.(2003) No competitors for Ryanair in Dublin‚ says Cassani Milmo‚ D.‚ 2006‚ Ryanair - the world’s least favourite airline‚ The Guardian‚ Available at: http://www.guardian.co.uk/uk_news/story/0‚‚1931403‚00.html
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CHAPTER 10: MARKET POWER AND PRICING STRATEGY Introduction We have examined how firms with market power can generate positive economic profit by influencing the price at which their products or services are sold. This conclusion was based on the assumption that firms must charge the same price to all customers. Now we explore alternative pricing strategies and show that when a firm with market power can “discriminate” among customers‚ additional surplus (beyond that achieved by a single-price
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