Case study on low cost airlines (RYANAIR) Preliminary questions: 1. What are your first impressions regarding Ryanair? 2. How would you characterize its marketing strategy? Ryanair (ISEQ: RYA‚ LSE: RYA‚ NASDAQ: RYAAY) is an Irish low cost airline‚ with headquarters at Dublin Airport and its largest operational bases at Dublin Airport and London Stansted Airport. Ryanair operates 182 aircraft on 729 routes across Europe and North Africa from its 31 bases.[1] The airline has been characterised
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RYANAIR Introduction This essay is initially going to analyse the LCC (Low Cost Carrier) industry and subsequently focus on Ryanair‚ the world ’s largest low cost international carrier (figure 1). The first part of the assignment is going to apply Porter ’s five forces to the above-mentioned industry‚ then it will look at how the company competes in such environment‚ referring to Porter ’s generic competitive strategies. Finally it will analyse how the company delivers on these competitive
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In April 1986‚ the Ryan brothers announce that Ryanair will offer service between Dublin and London‚ a route dominated by Aer Lingus and British Airways. AL and BA offer a range of tickets with varying restrictions and varying classes of service‚ but the least expensive‚ unrestricted round-trip fares were priced at IL208‚ far higher than the IL98 that Ryan Air announced. Ryanair’s strategy to launch a single far no restriction ticket at such a low price will gain market share quickly as well as possibly
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features(such as reliability‚ clarity of fees‚ availability of fares‚ on-board comfort‚ service‚ etc.) under control‚ which Ryanair cannot handle in various ways‚ resulting in negative thoughts of customers about this company. 3.2 Related problems: Ryanair accumulates ‘hidden’ taxes and other fees‚ restricted customer services‚ and deceiving advertisements. Ryanair imposes charges for anything from checking bags into the hold‚ up to £40‚ to changing the name on your ticket‚ for £110
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Assessment of Ryanair’s launch strategy One possible reason why Ryanair chose to enter the Dublin-London route is because the route was reputed to be quite lucrative for both Aer Lingus and BA. It is easy to see why this route is lucrative because the least expensive fare for both carriers were priced at I£208 but operating expenses per passenger was only I£155.1. Ryanair’s publicized fare of only I£98 will help it to attract more passengers than both carriers given that it cost only half the
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What do your overall assessment of Ryanair’s strategy? Although the strategy of Ryanair seems sound‚ I don’t expect it to succeed on the Dublin-London route. By matching service and amenities but pricing well below Air Lingus and BA‚ Ryanair stands to steal customers up to capacity of it’s 44-seat turboprop 4 times a day. This loss of customers‚ though small at this point‚ could likely elicit a strong response from both AL and BA. The Dublin-London route represents one of the few lucrative routes
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Ryanair Internal analysis Resources and capabilities In 2006 Ryanair was in ownership of a total of 103 Boeing 737 aircraft‚ and also a set order to increase this number by 138 in the next six years. Currently its fleet flies out from 127 destinations. Ryanair replaced its old fleet with new more efficient and environmentally friendly aircraft and has the youngest fleet of any major airline with an age of just 2.4 years. The new aircraft were effective in increasing efficiency as there was no
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Ryanair – the low-fares airlines Case Study By Sid Hegde Ryanair – the low-fares airline Table of Contents Q1. Why has Ryanair been successful thus far?..................................................................3 Q2. Is Ryanair ’s strategy sustainable?..................................................................................4 Q3. Would you recommend any changes to Ryanair ’s approach?.......................................5 Q4. Should Ryanair continue to pursue the Aer
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Management Structures Tonia M Woods HSM/220 Human Services Administration: So You Want to Help People September 20‚ 2014 Angelique Spruill Management Structures Departmentalization is the dividing of an organization functions into subgroups or departments. The advantages of this structure is the fact that each department will focus and practice on one specific job which helps to enable employees to work together efficiently and it also helps to save cost. The disadvantages to departmentalization
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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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