DogFight over Europe: Ryanair Global Business Strategy What is your assessment of Ryanair’s launch strategy? Is it sensible? Will it succeed? We believe that Ryanair’s launch strategy was successful and we will justify this statement with information that was provided in the Ryanair’s case. To begin with‚ Ryanair airline was not that hard to establish for Cathal and Declan Ryan because of the capital that Ryanair’s founders managed to get from their father‚ Tony Ryan‚ who was a co-founder of
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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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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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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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Do a five forces analysis of the airline industry in 1999 with the information available in the case study - Threat of new entrants o Airport slot availability • There is limited access to airport slots as national airlines had access to the best slots in the major airport hubs and new entrants to the market would only have little success as they would be given none or off-peak slot allocations at the airports • So-called grandfather rights at certain airports. • For instance in Heathrow
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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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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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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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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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