Review Case Study Dogfight over Europe : RyanAir 1. Overview of RyanAir RyanAir was founded in 1985 by Tony Ryan who former has been worked in Aer Lingus. It established to provide schedule passanger airline services between Ireland and UK as an alternative flight to the state monopoly carrier‚ Aer Lingus. Initially‚ RyanAir was a full-service conventional airline‚ with two classes of seating and leasing three different types of aircraft. RyanAir’s objective was to maintain its position as Europe’s
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(paragraph 6‚p12) Ryanair‚ the largest low-cost carrier in Europe‚ is affected by all the above mentioned factors‚ but is still the market leader in this changing industry. So‚ what is the impact of the macro environmental factors on Ryanair’s future development? Comac‚ a technological ambition for China‚ is a potential future competitor of Boeing and Airbus in the aircraft production industry. The Chinese plane would likely cost 10% less than Boeing and Airbus jets. Ryanair’ CEO Michael O’Leary
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The objective of my report is to analyze the external environment in "Ryanair-’Southwest" of European airlines" case‚ which is very important factor for the firm’s formulated effective strategy. The external environment consists of a wide array of economic and sociopolitical factors. It is the specific market arenas that the organization has chosen in its strategy; it provides the business opportunities to the firm and it’s also a source of threats or forces that may impede the successful implementation
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Explain the Importance of carbon taxes for the airline industry. Can Ryanair and British Airways respond in the same way? What is “Carbon Tax”? In the past‚ polluting was free. Generating pollution has a cost‚ which is a cost on earth natural environment‚ our economy and earth way of life. A Carbon Tax changes this. Instead of being able to pollute for free‚ polluters must pay for a price for every tone of carbon pollution is created. How does “Carbon Tax” affect the flight industry? Industry
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of rewarding employees for higher productivity by instilling fear of loss of job (e.g.‚ premature retirement due to poor performance). The desire to be promoted and earn enhanced pay may also motivate employees. Staff Training: No matter how automated an organization or a library may be‚ high productivity depends on the level of motivation and the effectiveness of the workforce. Staff training is an indispensable strategy for motivating workers. The library organization must have good training
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References: European Union (2004)‚ ‘Guidelines on the assessment of horizontal mergers under the Council Regulation on the control of concentrations between undertakings’‚ (5.2) Massey P European Union (2007)‚ ‘Case No COMP/M– Ryanair / Aer Lingus: Regulation (EC) No 139/2004 Merger Procedure‚ Article 8 (3). Bain J. (1956)‚ Barriers to New Competition‚ Cambridge‚ Harvard University Press. Stigler G. (1968)‚ The Organisation of Industry‚ Homewood‚ IL: Richard D Irwin Inc. Sutton
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maintain this advantage for Ryanair even though they continue to provide low fares. Ryanair is one of the most popular budget airlines available however it faces competition from other budget airlines such as EasyJet and Wizzair. Ryanair use secondary destinations to cut down cost and maximise profits. The handling costs will be cheaper and Ryanair will be able to expand on their extra services such as transportation to the main destinations‚ thus increasing sales for Ryanair. The use of more frequent
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Business strategy We focus on business strategy because we consider our organisation as a strategic business unit (SBU) which is any business that supplies goods or services to a distinct domain of activity. Porter’s generic competitive strategies A competitive strategy is concerned with how a SBU achieves competitive advantage in its domain of activity. Porter defines 3 possible generic strategies to use as a business. The cost-leadership strategy has for aim to become the lowest-cost organisation
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June 6th MKTG 476 Chapter 1 1. How are the basic business philosophies or orientations of major consumer products firm such as General Mills or Nestlé and a small entrepreneurial start-up in a fast-growing‚ hi-tech industry likely to differ? What are the implications of such philosophical differences for the role of marketers in the strategic planning processes of the two firms? Answer: A) The major consumer products firms like General Mills and Nestlé have to be market oriented in. In Exhibit
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distinct domain of activity.” - Small business: just one SBU‚ large corporations: many SBUs - SBUs can be identified by: à Market based criteria (similar customers‚ channels‚ …) à Capability based criteria (similar strategic capabilities) The purpose of SBUs Decentralization: Decentralization of corporate activities à own SBU strategy Variation: Variation of business strategies à needs of external markets Accountability: SBU can be held responsible à for own costs‚ revenues & profits
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