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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Ryanair Case Analysis 1. Porter’s Five Forces Analysis Substitute: In this industry‚ there are high substitution power because if one airline decides to raise prices then customers are going to switch to a cheaper airline company. The majority of passengers are price sensitive and have the option of taking other forms of transportation such as the rail or ferry. Customers are willing to travel longer if they can pay for a cheaper fare. The round fare for ferry and rail is 55
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this executive summary is to give recommendations on Ryanair‚ along with supporting logic for the recommendations. In the following paragraph‚ I will focus on Ryanairs’ strategic analysis‚ game theory application for the strategic analysis‚ and finally give recommendations based on reasonable analysis. Strategic Analysis The main strategy for Ryanair is its low cost structure. Ryanair undercut its Dublin-London service at I£98. The reason Ryanair was able to offer low fares was because they only
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report outlines the analysis of two low-cost airlines performance in Europe‚ namely easyJet PLC and Ryanair Hldgs during their financial year between 2006 and 2008. It examines the companies’ portfolio‚ future prospects and competitors to analyse the threats and opportunities facing their business. In conclusion‚ there is a recommendation whether to invest on easyJet and/or Ryanair’s shares. II.FINANCIAL AND NON-FINANCIAL RATIO ANALYSISIn terms of the completed financial analysis‚ there are several
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Ryanair Case Analysis 1. What is your assessment of Ryanair’s launch strategy? Was it a good strategy? In your answer consider potential market demand‚ pricing and Ryanair’s likely cost structure. After having grown up in the airline industry‚ the Ryan brothers proved they were able to operate a scheduled airline successfully with their 14 seat flights between southeast Ireland and a secondary London airport. Their strategy was to expand to the Dublin-London route‚ a known lucrative route for
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1. What is your assessment of Ryanair’s launch strategy. After establishing its ability to transport passengers from Ireland to secondary London airports (i.e. Luton and Gatwick)‚ Ryanair entered competition with British Airways and Aer Lingus to provide air travel from Dublin to London. They were able to complete with these well-established carriers by: A. focusing intently upon first-rate customer service and amenities comparable to BA and AL B. offering a simple ticket w/ no restrictions
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Task A- Introduction Ryanair Europe ’s Leading Low Fares Airline is an Irish airline with headquarters in Dublin and its biggest operational base at London Stansted Airport in the UK. It is Europe ’s largest low-cost carrier. As of 31 July 2007‚ Ryanair operates 516 routes across 26 countries from 26 bases. Ryanair has been characterised by rapid expansion‚ a result of the deregulation of the air industry in Europe in 1997. Ryanair is the third largest airline in Europe in terms of passenger numbers
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Although Ryanair inspired its strategy from the low cost model Southwest has created‚ we can easily notice that there is now major differences between Ryanair and Southwest Airlines. 1. They are not targeting the same market. In 2009 Ryanair had over 850 routes across 26 countries in Europe‚ while Southwest is only focused on the domestic market (except from Mexico and the Caribbean‚ after its acquisition of AirTran Airways). Even if Ryanair considered the opportunity to go overseas‚ they dropped
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How did the deregulation of air transportation in Europe foster entrepreneurial behavior and innovation in the European airline industry over the last twenty years? Case studies: SAS Airline & Ryanair Master Thesis in Entrepreneurship and Dynamic Business Contexts Spring 2007 Supervisor: Håkan Bohman Entrepreneurship Master Program Authors: Gilles Helterlin and Nuno Ramalho Acknowledgements We would like to express our gratitude to all who have contributed to the realization of this
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2 Referring to the Ryanair case‚ critically discuss the extent to which low cost competitive strategies are sustainable. SWOT Analysis: Firm’s strategy should take external opportunities and threats and internal strengths and weaknesses into account. This is done by SWOT Analysis. The SWOT-Analysis is an effective way of identifying internal strengths and weaknesses of any organization and of examining opportunities and threats of the external environment. The analysis’ objective is to take
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