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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HBS Case Report: Shenzhen Development Bank Contents Executive Summary This report provides an analysis and evaluation of Newbridge’s proposed investment into Shenzhen Development Bank. Methods of analysis include an assessment of the bank’s financial performance‚ examining factors such as its asset quality‚ earning capability and capital adequacy. It also provides an in-depth analysis into the appropriateness of the price Newbridge must pay for the
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Midland Resources 1. How are Mortensen’s estimates of Midland’s costs of capital used? How‚ if at all‚ should these anticipated uses affect the calculations? The cost of capital is the minimum acceptable rate of return for new investments in the corporation. Estimates of Midland’s cost of capital are used in many analysis within Midland‚ including asset appraisal for both capital budgeting and financial accounting‚ performance assessments‚ M&A proposals‚ and stock repurchase decisions. These
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International Strategic Management Coursework 2011/12 Case study analysis: Ryanair – the low fares airline: wither now? Executive Summary The purpose of this paper is to use analysis of the airline industry and of Ryanair to highlight the firms’ successes thus far. It also considers the sustainability of the current strategy by viewing the future of the firm and its competitors. Using Porter’s five forces‚ the VRIO framework and the SWOT analysis it gains intimate information on the factors
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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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1. Strategy of Ryanair Overview of the Company Ryanair started in year 1985 with only 57 staff members and with one 15 seater turboprop plane from the south of east of Ireland to London-Gatwick which carried 5000 passengers on one route (Harrison‚ 2002). In 1986‚ inspired from the story of David and Goliath the company go after the big guys for a slice of the action and end up smashing the Aer Lingus or British Airways high fare cartel on the Dublin-London route. The staff increased
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I.INTRODUCTIONThis 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
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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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Management Consulting Club Case Interview Guide Harvard Business School Management Consulting Club Case Interview Guide Cases contributed by Management Consulting Club and consulting companies. Note: Case guide is strictly for the use of current HBS Management Consulting Club members. No part of this document may be reproduced or transmitted in any form or by any means—electronic‚ mechanical‚ photocopying‚ recording‚ or otherwise—without the permission of HBS Management Consulting Club
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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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