CAVENDISH COLLEGE Strategic Marketing Management EasyJet Assessment – Task Two Lecturer: John Heather Danilo Gomes de Matos – Group C – DMS/MBA Date: 03/06/2008 List of Contents Company selection and background 4 Customer base 4 Product/Service 4 Target market 5 Financial information 5 1. External Analysis – Macro Environment 6 1.1 PESTEL Analysis 6 2. External Analysis – Micro Environment 12 2.1 Porters Five Force 12
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In its’ penetration of the aviation industry in 1985‚ Ryanair adopted a two prong strategy of focusing intently on providing first rate customer service and charging a simple‚ single fare for a ticket with no restrictions. This generic strategy was in contrast with British Airways and Aer Lingus which focused on providing a wide variety in its’ choice of ticket offerings to cater to the different market segments and in diversifying its business to derive more sources of revenue. Ryanair’s
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Europe’s largest low-cost airline Ryanair . His dogged unrepentant style was a winning strategy for an upstart airline trying to establish itself. His obsession with cutting costs as well as trying to always put one over on the large national carriers is what makes him appear arrogant to most people. His press conferences are usually very theatrical; it is not unusual to see him dress up as any thing from the Pope to‚ a large Mobile Phone. O’Leary has brought Ryanair from nowhere to become the continents
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References: About Us. (n.d.). Ryanair and the Environment. Retrieved April 2‚ 2014‚ from http://www.ryanair.com/en/about/ryanair-and-the-environment Assen‚ M. v.‚ Berg‚ G. V.‚ Pietersma‚ P.‚ & Have‚ S. t. (2009). Key management models: the 60+ models every manager needs to know (2nd ed.). Harlow‚ England: Financial Times/Prentice
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from other Airline companies in Europe. Low costing of tickets due to airport operator deals. A biggest advantage of Ryanair is Reputation as "First Biggest Budget Airline in Europe’s". Main strength given to Ryanair by media through free footage to people from various Controversial issues created in flight and due to the tough decision made by chief executive Michael O’Leary. Ryanair collects enormous profit from Ancillary revenues from on-board and online gambling‚ an in-flight mobile phone service
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the industry would be losing 28‚550‚000£. How this figure is distributed between Aer Lingus and British Airways depends on the breakdown of sales of the 500‚000 passengers that pick that route yearly. | Current price (155.1£) | Price war (98£) | RyanAir (98£) | Cost type? | Operating expenses | | | | | Staff | 35.7 | 35.7 | 21.4 | Fixed | Depreciation & amortization | 8.6 | 8.6 | 0.0 | Fixed | Fuel & Oil | 31.8 | 31.8 | 31.8 | Variable | Engineering and other aircraft costs | 9.8 |
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decreasing. Newsweek. 151(16). Guardian (2009) News in Brief [online]. Available from: http://www.guardian.co.uk/business/2007/nov/13/4 [Accessed 26/03/2009]. Guardian (2009) Ryanair boss’s plan for £10 flights to US flies in face of plunging profits [online]. Available from: http://www.guardian.co.uk/business/2008/nov/04/ryanair-airline-industry-transatlantic-flights [Accessed 2nd March 2009]. Guzhva‚ V‚ S. (2008) Applying intervention analysis to financial performance data: The case of US airlines
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The Low-cost Orange Flying Machine: The Case of easyJet Introduction The colour orange is increasingly becoming synonymous with the firm easyJet as it has become one of the world’s most profitable low-cost airlines (Alamdari and Fagan‚ 2005). This paper examines the basis of their success and argues firstly‚ that easyJet from its inception essentially adopted and stayed with the original low-cost model that was pioneered by Southwest airlines in the USA. Moreover‚ this is a model that has served
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March 2011 have affected the operating costs of Ryan air consequently. The repeated European government owned Air Traffic Control strikes have also caused a huge loss for airline industry as these strikes forced RA to cancel huge number of flights. Ryanair also had to pay compensation to passengers based on EU 261 reforms. Economic factors The interest rates in England is 0.5% which has a positive affect and will encourage RA to borrow money on low interest rates to expand their business activities
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customer service of low cost airlines on consumer choices 1.2 Statement of the issue to be investigated This investigation will talk about the customer service and its impact on customer’s choices of two main leading low cost airlines in the UK: Ryanair and EasyJet. Customer service is very important to an organization because it helps
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