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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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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the business environment. Ryanair operates in a very competitive market with in Europe. Considering the current economic climate this market has become increasingly more competitive with a far greater emphasis on value for money. It is evident from Ryanairs records that they hold a competitive advantage in their area of business. This is proven from the profitability percentage which is close to 15% considering the average figure is 3%. This is achieved by Ryanairs low cost business module. CEO
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low-fares service. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. The key elements of Ryanair’s strategy are: Low Fares. Ryanair’s low fares are designed to stimulate demand‚ particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way
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In February 2012‚ President Aquino has reiterated the Philippines’ commitment to achieve the Millennium Development Goals in 2015‚ and vowed to work double time in order to fulfill the different targets under the MDGs with only 4 years left (“Aquino:PHL...”‚ 2012). The Millennium Development Goals‚ or MDGs‚ is an effort launched by the United Nations in order to improve the living conditions in different nations‚ by seeking to battle different social and economic problems such as hunger‚ poverty
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Nova School of Business and Economics 2012/2013 DOGFIGHT OVER EUROPE: RYANAIR Case Study This set of questions refers to Version (A): 1. Which kind of customers was Ryanair trying to attract when‚ in 1999‚ Michael O’Leary took charge of the firm? Those with a low price elasticity of demand or those with a high price elasticity of demand? Explain. Considering that we are talking about the same product‚ in an industry with many firms‚ where producers and consumers know all quoted prices
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poorer. The 191 UN members established United Nations Millennium Development Goals stating that they have agreed to try to achieve by the year 2015. This MDG includes combating poverty‚ hunger‚ disease‚ illiteracy‚ environmental degradation‚ and discrimination against women. Its’ aim is to decrease the world poverty fifty percent. There are eight goals in MDG. Now 2012‚ it has passed more than 10 years since these goals have established to free humanity from extreme poverty‚ hunger‚ illiteracy and
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Ryanair Marketing Mix Product or Service. - Low cost‚ no frills air travel to European destinations. - No free food or drink onboard. You buy them onboard‚ or you don’t. You can take your own food and drink. - The company has deals with Hertz car rental‚ and a number of hotel businesses‚ phone cards and bus tickets. Ryanair takes a commission on ’up selling’. About 16% of profit is made this way. Price - Ryanair has low fares. -70% of seats are sold at the lowest two fares. 30% of seats
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Individual report (20%): What are the strategic choices for Ryanair? a) The choice of business positioning relative to competitors. b) The choice of strategic directions to pursue. c) Evaluate the reactions of key stakeholders regarding the strategy of Ryanair bid for Aer Lingus. -The business report should be précised. - Length is 2‚000 words (1‚800 to 2‚200) plus 10% deviation. Too brief or too long will be penalized. You need to indicate the words count at the front page of your report.
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Assignment Ryanair Case 1-What is your assessment of Ryanair’s launch strategy? - Will it be successful? Or is it fatally flawed? Why? - Does Ryanair’s strategy give it a competitive advantage over the rivals? 2- How do you expect Aer Lingus and British Airways to respond? Why? - Focus on competitor analyses of Aer Lingus and British Airways. What does Aer Lingus want to achieve? What does British Airways want to achieve? - What are the reasons to expect vigorous retaliation from Aer Lingus
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