MGT 472; Strategic Mgt. Ryanair Case Study 1.) What are the characteristics of the European aviation environment at the time of the case? (20 points) When Ryanair was established in April of 1986‚ there were many factors to consider in order to properly assess their current environment. In order to attain a firm grasp of their current atmosphere‚ we must delve deeply into its external‚ general‚ industrial‚ and competitive facets. European aviation at the time was dealing with different
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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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BACKGROUND ANALYSIS In 1986‚ upstart airline Ryanair proposed to expand its business to the London-Dublin route‚ in direct competition with British Airways (BA) and Aer Lingus (AL). While BA focused primarily on business passengers‚ and was profitable on the London-Dublin route relying on travel agents being responsible for 83% of its scheduled revenues‚ AL was loosing money and was in business primarily due to Irish government support. However‚ international routes accounted for 2/3rd
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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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do you expect Aer Lingus and British Airways to respond? There could be 4 ways to respond: 1. Start price war with Ryanair by immediately reducing AL and BA prices: unsustainable due to high overheads. 2. Gradual cost cutting (staff reduction‚ less customer service‚ less perks‚ lower quality travel‚ outsourcing of services‚ etc.) to bring pricing structure in line with Ryanair: without losing core competence‚ brand value and profit at bigger stage where they are now profitable. However subsidizing
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Running head: SCENARIO ANALYSIS Scenario Analysis Rashad D. Cherry CJ340: Applied Criminal Justice Ethics Unit 6 Kaplan University June 27‚ 2013 Scenario Analysis Scenario 1 - Drugs at a Friend’s House There is definitely a moral problem presented in this scenario. I have been put in a very uncomfortable situation as this is a friend of mines party and house but there are individuals within
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Methods of Future and Scenario Analysis Overview‚ Assessment‚ and Selection Criteria Hannah Kosow Robert Gaßner Methods of Future and Scenario Analysis German Development Institute (DIE) The German Development Institute is a multidisciplinary research‚ consultancy‚ and training institute for Germany’s bilateral development cooperation as well as for multilateral development cooperation. On the basis of independent research‚ it acts as consultant to public institutions in Germany
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Ryanair Strengths * In its 26 of being in the airline travel industry‚ RyanAir were the first to launch low cost flights in Europe and has established itself as a reliable airline providing the lowest fares in the market. * The usage of a single model of aircraft i.e. Boeing 737 planes reduces training‚ maintenance and supervisory costs. Their new aircraft models burn less fuel and have less noise emissions which result in more safety‚ higher fuel efficiency and create more opportunities
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Introduction In the following report‚ myself and group members have been instructed to act as consultants analysing the service encounter in video 2‚ making use of one or more of the blueprinting modelling techniques. The models used in this report are servquals and service blueprinting. In a challenging and highly competitive market in which service industries proliferate‚ service quality is of paramount importance and essentially encompasses the differences between service expectations and
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