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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opportunities‚ it is also essential to analyze the internal environment of the company‚ to identified the types of activities that form the production process. An analysis tool that helps identify what are the key activities of the production process of Ryanair and which are auxiliary or complementary is the analysis of the value chain (value chain). The value chain‚ in fact‚ lets to consider the enterprise as a system of value-generating activities. This value is defined as the price that the consumer is
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INTRODUCTION This critical review of the article of Briner‚ B and Conway‚ N (2006) "Protecting the psychological contract" will briefly consider the problem formulation‚ the place of the theory‚ methodology‚ Standard of analysis and presentation. The writers show that an employment contract is vital in the relationship between the employee and the organisation. That a psychological contract is as equally important but is less well known. They further highlight that the psychological contract
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focused on a S.W.A.T. analysis on Ryanair‚ was fully based on internet web sites. For full information‚ refer to the bibliography at the end of he report. 3. Findings 3.1 Strengths a. Leadership in the low-cost sector • “Ryanair was Europe’s original low fares airline and is still Europe’s largest low fares carrier. Currently the company carries over 35m. passengers on 325 low fare routes across 21 European countries”( Ryanair). As a matter of fact Ryanair is currently the largest low-cost company
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Macro-environment PESTEL Analysis: Political and legal factors Political issues are very relevant in the airline industry which has been and still is under political influence. This is particularly true in the European Union where Ryanair primarily operates. A recent liberalization act came under the form of the EU-US Open Skies Agreement‚ signed in 2007and which entered into effect on March the 30th 2008‚ which gives the right to US based airlines to operate intra-EU flights‚ while European
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Pharmaceutical Industry - Key Success Factors There’s a time for everything. For Dr Ramakanta Panda‚ it was time to build a ’modern hospital’ in India. As a cardiac surgeon from the prestigious Cleveland Clinic‚ US‚ he was known for his super-safe hands. But his ideas proved too radical for the design team. Whoever heard of picture windows to ward off ICU psychosis? Or counselling areas for patients’ relatives? How would cafeteria‚ convenience store‚ library‚ public booth‚ Internet access‚ and
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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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The Low Fares Airline---Ryanair By Kuan Li Introduction: Chief executive Michael O ’Leary blamed weaker exchange rates‚ greater competition and the continued impact of austerity measures in Europe for decline. However‚ sources at other airlines queried Ryanair ’s statement‚ saying they had yet to see similar signs (Thomas‚ 2013).In other words‚ that means the environmental impact of Ryanair is less than other airlines. At the same time also can know that Ryanair has strong actual strength. The
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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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