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Ryan Air Case Study
Ryan Air Case Study
Strategic Management
Names:
Table of Contents
Step 1: Identifying the positioning questions
1.1 Summary of the casepg. 2
1.2 Main Questions & Problemspg. 3
1.3 How was the strategy developed?pg. 3
Step 2: Gathering & analyzing the facts
2.1 Ryan Air Environment Analysespg. 3
2.2 Ryan Air Strategic Capability Analysespg. 5
2.4 Ryan Air Competitive Strategy & Business Model Analysispg. 5
2.5 Ryan Air Stakeholder expectations & purposes Analysispg. 7
2.6 Ryan Air Economics Analysispg. 9
2.7 SWOT Analysispg.10
Step 3: Alternative Courses of Action
3.1 Alternative courses of actionpg.11
3.2 Evaluation considering mission & long term goalspg.12
3.3 Advantages & ... Show more content on Helpwriting.net ...
These should include the rise in fuel costs and considering history, terrorist attacks.
Social
Even though surveys show that customer satisfaction is not up to the standards of their competitors such as Easyjet, Ryan Air is still an attractive
choice for the customer base which is budget conscious and likes no frill and low cost travel.
Technological
In 2000, Ryan Air launched its website www.ryanair.com where over 95% of bookings are made online. This saves the company from marketing and
agent costs, while fulfilling the customer's expectations of a simple online booking system. Further, Ryan air keeps upgrading its fleet to modern
aircraft.
Environmental
Optimizes efficiency, as among the 20 largest airlines by passenger volume Ryan air has shown to be the cleanest, using barely more than a third the
fuel to transport its average passenger one mile compared to the least efficient, American Eagle.
Legal
Ryan Air has been in court for misleading advertising campaigns and inefficient services offered to the disables. Further, they have been accused of
receiving illegal subsidies from an airport.
Porters Five Forces Analysis: this frame work is used to determine how attractive the low cost airline industry is terms of the competitive forces.
Competitive force
Type of Threat
Level of Threat for Ryan Air
Explanation
Potential Entrants
Threat of Entry
Low
It is hard legally and very
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Ryanair History
History
ATR–42 in 1991
Ryanair has grown since its establishment in 1985 from a small airline flying a short hop from Waterford to London into one of Europe's largest
carriers. After the rapidly growing airline was taken public in 1997, the money raised was used to expand the airline into a pan–European carrier.
Revenues have risen from €231 million in 1998, to €1843 million in 2003 and €3013 million in 2010. Similarly net profits have increased from
€48 million to €339 million over the same period.[3]
[edit]Early years
Ryanair was founded in 1985 by Christopher Ryan, Liam Lonergan (owner of Irish travel agent Club Travel) and Irish businessman Tony Ryan (after
whom the company is named), founder of Guinness Peat Aviation and father... Show more content on Helpwriting.net ...
However, the airline recovered posting profits soon after. The enlargement of the European Union on 1 May 2004 opened the way to more new routes
as Ryanair and other budget airlines tapped the markets of the EU accession countries.[16]
In February 2005, Ryanair announced an order for a further 70 Boeing 737–800 aircraft, along with an option for a further 70. This was expected at the
time to allow Ryanair to increase passenger numbers from the 34 million expected in 2005 to 70 million in 2011. Some of these aircraft would be
deployed at Ryanair's 12 European bases, others to 10 new bases the company intended to establish over the next seven years.[17]
In June 2006, the company announced that in the quarter ending 30 June 2006, its average yields were 13% higher than the same quarter of the
previous year[18] and its passenger numbers were up by 25% to 10.7 million, although year–on–year comparison was difficult, because of the
movement of Easter from first quarter 2005 to second quarter 2006. Net profits (€115.7 m) increased by 80% over the same quarter in 2005.
Management indicated that the level of growth may not be sustained for the remainder of that year, despite adding 27 new aircraft and opening new
routes.[19]
Ryanair's passenger numbers have grown by up to 25% a year for most of the last decade. Carrying under
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Issues and Challenges Organisations Face When Pursuing...
"Critically discuss the issues and challenges organisations face when pursuing organic rather than external methods of development" Nowadays every
company faces the need for strategic growth in the fast moving business world where every organisation has to be flexible and needs to adapt to
changeable environment. A lot of organisations fail to growth successfully. What are the main reasons for inefficient strategic growth? In order to
answer this question, it is essential to understand what the methods of strategic growth are in general and how the company can choose the most
suitable. Two methods of strategic growth are existing – the internal method (organic growth) and the external method. According to Investopedia...
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Couslon – Thomas (2008) is arguing that the companies are wasting inconceivable amounts of money for "fashionable activities and acquisitions that
reduce shareholder returns." Instead of that, organisations have to explore the opportunities, exploit corporate know–how and strengthen the
relationships with customers, among employees and other stakeholders. Both researches indicate that the organic growth is not fashionable method to
develop company's strategy and it is not efficient mainly because of the lack of knowledge. As described in the introduction, inorganic growth is the
strategic development which uses the competencies of an external organisation to achieve the progress. The external methods could be acquisitions,
mergers, joint ventures, partnerships or alliances. (Thompson, Martin, 2005) Inorganic growth is often described as a faster way to grow compared
with the organic growth. According to Chari (2004) external method helps to expand the company faster, access to new markets and the customers,
decrease the competition and access to new technologies. However the author is arguing that the inorganic strategies as mergers, acquisitions have very
high failure rates and therefore a company can lose a lot of money. As it is mentioned previously, there are different forms of the inorganic growth. The
main forms of the external method, acquisition and merger, will be
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Strategic Analysis on Ryanair
TABLE OF CONTENTS Introduction| 2| Analysis| 3–7| Problems| 7| Solutions| 8| Conclusion| 9| References| 10|
Word Count: 2061
Introduction
Ryanair was founded in 1985 by the Ryan family, which was headed by Tony Ryan. It was the first budget airline in Europe, modeled after the
successful US carrier, Southwest Airlines. It was founded to provide scheduled passenger airline services between Ireland and the UK, as an
alternative to then state monopoly carrier, Aer Lingus. At the beginning, Ryanair was a full service conventional airline, with two classes of seating,
leasing three different types of aircraft. Despite growth in passenger volumes, by the end of 1990, the company faced a great conflict, disposing of ...
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The PESTEL shows that the external environment mainly works into opportunities for Ryanair with some unpredictable factors that might threaten the
business operation. Example of this unpredictable factor is the fuel price. The fluctuation of fuel price might work into the advantage or disadvantage
of Ryanair. For Ryanair to thrive in its business operation, it ought to overcome these rampant external factors and exploit the external factors that
would improve their business operation such as the EU expansion. With the EU expansion, Ryanair can expand the
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Ryanair Executive Summary
Market Description:
The transatlantic airline market between the United States and Europe is the single largest intercontinental market in the world, with rigorous
competition between dozens of airlines. The transatlantic market consists of passengers, both seeking business and pleasure needs. Within the first year
of offering transatlantic flights, higher income professionals travelling for business purposes will be targeted, along with families and students
travelling on a J–1 visa. As the market is heavily competitive, targeted segments such as families and students will be relatively elastic to a change in
price, with hope of finding the best deal. If Ryanair can replicate its hugely successful model, offering savings on landing fee ... Show more content on
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Dublin is a powerful connecting hub for transatlantic routes; Aer Lingus has now turned its focus on long haul growth, resuming flights to Los Angeles,
and a host of other destinations.
Strengths, weaknesses, opportunities and threat analysis:
Strengths:
Ryanair have a number of strengths on which to build on:
1.Low costs– Ryanair has the lowest unit costs in Europe and one of the lowest when compared to international airliners. Lower costs can be passed
onto customers in the form of cheaper prices, which Ryanair will need to offer in order to compete. Research from the Centre for Aviation showed
that whether it was cost per seat or cost per passenger, Ryanair costs were less that of their competitors.
(Source: CAPA– Centre for Aviation– Unit cost analysis of Emirates, IAG & Virgin; about learning from a new model, not unpicking it)
2.Low fares– This is a result of lower costs, enabling Ryanair to offer lower costs than their competitors. If Ryanair can replicate their current cost
model which has proved so successful in the European market and transfer it into transatlantic routes, they could offer flights at a significant amount
less than Delta and BA.
3.Size– Currently, Ryanair is larger in transporting passengers than Aer Lingus andBritish Airways. Due to its enormous size, it has given Ryanair
significant negotiating power over Boeing, and has undoubtedly provided Ryanair with discounts and led to Ryanair's
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Jetblue's Good Service Quality
ABSTRACT (Isabelle Aultman and Ben Cvek) In any business service quality is going to "make or break" the company in the long run. JetBlue has
great ideas on how to compete and how to be lower priced while still gaining profit. Customer and provider gaps are all about what a customer expects,
what a customer perceives, what a customer is willing to accept, what a company understands about those expectations, a company's communication
both internal and external, and the company systems and processes (Zeithaml, et al.,2013).
Although JetBlue had good service quality in place for the most part, it lacked the proper processes and systems to properly provide support.
Ultimately, customers had expectations and were not willing to accept the ... Show more content on Helpwriting.net ...
Additionally, JetBlue targeted large metropolitan areas with high average fares to compete with the larger airliners. Even small things such as more
seats and a more fuel–efficient aircraft increased profits. Things seemed to be running great for JetBlue as they increased the number of destinations.
All of these things kept JetBlue profitable. It seems as though JetBlue has strayed from their original core values, although, the company seems to be on
the way to resolving the issues that plague them.
STRATEGIC PROFILE (John Beck and Admira Salazar)
Starting Off In the Right Direction
Jet Blue was birthed in 1999 by David Neeleman and went public in 2000 as an independently owned and operated Airline. Headquarters is located in
Long Island, New York with its main base atJohn F. Kennedy International Airportwith most of the flights occurring in the United States and the
Caribbean (Docslide, 2015).
From its very essences, JetBlue showed high signs of profitability, initially the company set out to sell over five and a half million shares at an
average of $25 per share. However, the company actually topped off at $27 dollars selling almost 6 million in shares. Being in the airline industry
means the level of competition is high, so JetBlue wanted to establish itself as a high–end airline with
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Economies Of Scale Makes A Company A Better Company
Nowadays, companies want to expand as much as possible. This is shown by the increases in the number of product lines, and the expansion to new
geographical markets. However, does it really make the company better off to expand? In other words, is a bigger company a better company? The
concept of economies of scale plays an important role in answering this question. Economies of scale is "the effect on average costs of production of
different rates of output, per unit of time, of a given commodity, when all possible adaptations have been carried out to make production at each scale
as efficient as possible" (Silberston, 1972). Consequently, the higher the output, the lower average costs per product. However, does this reduction in
average costs make the company a better company?
An important source of economies of scale is the division of labor (Smith, 1776/1991). The division of labor can be seen as specialization. Each
employee specializes on a certain step in the production process. In this case, the company can produce more units of output than they could have
produced when every employee would have produced an entire product. The company is more efficient, and as a result, their average costs are lower
with a high level of output. The division of labor is therefore an important source of economies of scale. The division of labor enables the firm to
produce more units of output, have lower average costs, and therefore have a higher profit margin. All these components
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Persuasive Essay About Self Trust
Self doubt is a strong, yet underestimated, emotion. It can squeeze into one's brain, filling all cracks of empty space like a balloon, pushing out
confidence and adventure. Fear drives away the yearning to take risks and leaves one with only the ability to ponder on what could have been. As
a child, I sometimes forgot that taking leaps of faith is important to maintain a joyous lifestyle. When around new people I kept my mouth shut and
refused to cause any trouble. My mom now claims that this was a good thing, boasting about how I was an easy child. I'd beg to differ. My
childhood was marked by the need to lay low, keeping my opinions to myself, staying quiet when others were around, and not promoting antics or
chaos. I was never outgoing unless I was comfortable enough to speak my mind. I was as dormant as a doornail. My family may have been at the center
of this; with my siblings being five and eight years older than myself, I had a hard time connecting with them on an emotional or social level. I was
David in a house full of Goliaths. My sister graduated high school when I still played with dolls; my brother got his license when I had yet to reach
middle school. I felt like an outcast in my family and that led me to stay as 3reserved as possible. This mistake led to the inability of my awkward
pre–teen self to form new relationships with strangers. There was a point in my life that changed my perception of my own personality. The summer
after seventh grade I embarked
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How Does Ryanair Porter's Five Forces Model
As we can see in the graphic, "Ryanair uses barely more than a third the fuel to transport its average passenger one Mike comparared to the least
efficient. It succeeds by ranking first or second for efficiency in load factor and seating density, while runner–up Cathay Pacific ranks first on aircraft
fuel economy, distance, and freight share." (Ryanair, 2016).
1.4Analysing the Industry environment: Porter's Five Forces Model
According to Porter (2008) there are five competitive forces that shape the structure of the industry. These forces are: Customers, suppliers, potential
entrants and substitute products. This model is a useful tool in order to develop the competitive advantage and it will be used for identifying the
competitive forces for Ryanair.
1) The bargaining power of suppliers: "Every ... Show more content on Helpwriting.net ...
It is recognised for its cost leadership in the market. It operates in secondary airports which means low airport charges. Furthermore, it has a 30 year
safety record and uses modern aircraft.
Its additional income comes from extra baggage, additional weight and services. It has reduced costs by personalising the purchaising process.
Customers are the ones responsable of printing their flight ticket, otherwise they have to pay a fee at the airport.
Weakness
The first weak point is that customers are price sensitive, if Ryanair does not provide the cheapest price, they will use another airline. Nowadays,
Airlines are reducing and cutting costs which can influence the passengers to choose another option.
Another important point is related to the brand reputation, customers know that is a low cost airline, however not everyone knows about its safety
record. In addition, customer service has a bad reputation, as the interest is to provide and reduce costs, the customer service has been left behind.
However, currently this is changing. Ryanair is realising that customer service is a key point for engaging them with the
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Airline Airlines : Business Strategy Course Theories And...
As a result of the success story of the U.S Budget Airline – Southwest Airlines – Ryanair was established as a first low–cost airline in Europe. The case
study is based on the revised Strategy of Ryanair to meet challenges within European airline industry of the budget service providers.
The case discusses the business strategy the company adjusted to improve its performance in the challenging environment.
To meet the aim of this case study we conducted a strategic analysis of the business environment, the industry itself, corporate and secondary
information in order to get relevant data for identifying and applying Business Strategy course theories and concepts based on the case study.
Overview of Ryanair
Established in 1985 by the Ryan family with the aim to provide regular passenger airline services to connect Ireland and the UK, Ryanair became an
alternative to the state monopolistic carrier, Aer Lingus (Ryanair, 2014). Therefore, in 1997 Ryanair acquired Aer Lingus as the leading air carrier on
flights between the Republic of Ireland and the UK with 4 million passengers and a 37 per cent market share. Ryanair was a full–service conventional
airline, offering two classes of seating, operating three different types of aircraft.
Ryanair's goal was to hold its position as Europe's leading low–fares airline, operating frequent multi–destination flights on short–haul flights, based
mainly in regional and secondary airports. The strategy was based on a mission of
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Ryanair
Introduction
Ryanair is one of the most profitable low–cost and low–fare airlines in the world. Even though it was merely bankruptcy in 1991, it could stand up and
become very successful by 1999. An issues was what led Ryanair to huge losses in 1991, how did it re–gain its position, and what lay ahead in the next
century.
Analysis
Prior to 1991, Ryanair had suffered from continuous losses from 1985 to 1989. The first reason that put it into this situation was that it tried to position
itself as a low fare airline with the first rate services. It tried to keep low and unrestricted fare, while keep focusing on the best customer service and
relationship. This mixed model was proven inefficiency. The low price could lure number of... Show more content on Helpwriting.net ...
Main reason were that it abolished the mixed model, applied low cost strategy, improved its operation, reposition itself, and increase number of
ancillary services. A key issue that waited for Ryanair at the end of 1999 was how to move and what to do to maintain or increase its market share.
From the analysis, Ryanair should maintain its current position. However, it is strongly recommended to provide the check–through baggage for
connecting flights for other airlines. This could increase number of passengers who have to transit via a route that Ryanair provided. Moreover, it
should increase ancillary services by offering referral program to car rentals, hotels, and travel agencies. By doing this, it could generate more revenue
to provide more services in other parts.
For the in–flight service, it is suggested that Ryanair should offer rental in–flight entertainments or internet services. As for a promotion, in the best
case, it could offer a free flight or IВЈ1 flight with limited seats to attract customers who never fly before or those who love travelling.
In a worse case that an intense competition among employees occurs, the company should reset its pays distribution and incentives before (or along
with) follow the above recommendations. Moreover, in the worst case that many more low–cost and low–fare airlines enter the same route with
Ryanair, it is highly suggested that
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Dogfight over Europe: Ryanair (a)
Indian institute of management Dogfight Over Europe: Ryanair (A)| Case Analysis
Overview Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14–seat turboprop between
Waterford and Gatwick Airport on the outskirts of London. The airline targeted low–fare segment market. It initiated service from London's secondary
airports. In terms of competition, Waterford and Gatwick didn't pose any challenges. In 1986, Ryanair gained a license to operate between Dublin and
Luton, another secondary airport of London. In that year, they announced the commencement of service from Dublin and London. On this route,
British airways (BA) and Aer Lingus were already operating. This route is ... Show more content on Helpwriting.net ...
Aer Lingus and BA's least expensive, unrestricted round–trip fares on the route were priced at IВЈ208. Discount fares as low as IВЈ99 were available,
though they had to be booked one month in advance.
Nevertheless, Ryanair needs to evaluate its operating expenses and check whether such a drastic drop in market prices can be sustained by it. British
Airways – Defending market share British Airways, being the market leader in the given market scenario can take the following steps to protect its
market share 1. Reduce prices to compete with Ryanair As can be understood from the analysis given below, if British Airways can cut it's staffing by
25%* and increase it's utilization to 90% from 60%, it shall be able to reduce the prices significantly to IВЈ104, still IВЈ6 more than Ryanair. As
British Airways is a renowned market leader, people would be inclined to travel by British Airways by paying the IВЈ6 extra than by a relatively
unknown carrier Ryanair. Also, such a reduction in tariff on all of BA's routes might not be necessary. It can very well position separate flights/routes
for this rate so as to offset any reduction in utilization through profits in other routes. | British Airways| BA Optimized| BA with 90% capacity
utilization and reduced staffing| Ryanair| | IВЈ| Percent of Revenue| IВЈ| IВЈ| IВЈ| Total Revenue| 3,06,36,00,000 | | 2,87,78,93,400 |
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Dogfight over Europe: Ryanair (a)
For the exclusive use of J. SICINSKI
Harvard Business School9–700–115
Rev. November 21, 2007
Dogfight over Europe: Ryanair (A)
In April, 1986, the upstart Irish airline Ryanair announced that it would soon commence service between Dublin and London. For nearly a year, the new
airline had operated a 14–seat turboprop between Waterford, in the southeast of Ireland, and Gatwick Airport on the outskirts of London. The founders
of Ryanair, brothers Cathal and Declan Ryan, felt that service on that first route had developed well. They knew, however, that the Dublin
–London
route would pose new challenges. For the first time, they would face Aer Lingus, British Airways, and other established competitors on a major route.
European Aviation... Show more content on Helpwriting.net ...
Intra–country service was also regulated strictly. To varying degrees, domestic fares were set by government authorities, and entry by new airlines was
discouraged.
The collapse of European empires and the advent of jets capable of crossing the Atlantic economically led virtually all European flag carriers to refocus
their international efforts on routes across the North Atlantic in the late 1950s. Heavy and growing demand for transportation to and from North
America made such routes highly profitable, at least initially.
Europe's system of regulation soon came under pressure. A late–1950s attempt to unify the flag carriers of France, West Germany, Belgium, and Italy
collapsed under the weight of disparate national interests. By 1960, the Economist magazine bemoaned the state of the heavily regulated, fragmented
airline industry. "The basic trouble," it concluded, "remains that the world has too many airlines, most of them inefficient, undercapitalised and
unprofitable."4Though the IATA introduced some forms of restricted, discount fares in the 1950s, consumers grew dissatisfied with high prices.
European regulations applied largely to regularly scheduled service between destinations. To bypass these regulations and to tap pent–up demand for
leisure travel, charter airlines appeared and grew rapidly during the 1960s. These start–ups, funded in part by shipping companies, offered holiday
makers cheap fares on
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Ryanair
Ryanair – The low fares airline: Whither now?
Main Problems
Ryanair's growth rate is affected by macroeconomic factors such as the recession, as seen in 2010 when Ryanair saw a 200% increase in profit and
traffic growth, as the low fares became attractive for those suffering from the current climate. Uncertainty still remains regarding the economic climate;
problems would arise if it continued, as passengers would reduce spending restricting the company's passenger volume growth. If the economic
climate was to grow, business and leisure passengers may choose to pay more and travel with a full service airline, this could consequently result in
demand for low–cost flights to drop.
One of the greatest concerns is fuel prices the ... Show more content on Helpwriting.net ...
If it were to be successful Ryanair would have to change their strategy, as it would not be able to keep low costs, as passenger on long haul flights
would want the additional add–ons at no extra price. This would result in increased price and pose a challenge for Ryanair to maintain cost leadership.
Possible Solutions
Ryanair should expand in the EU, by increasing flight frequency and flights expansion especially in Eastern Europe. One way they can do this is to
purchase WizzAir, an airline that already has major bases and routes in Eastern Europe. This would gain an advantage over competitors such as easy jet
who currently have no bases there, thereby maintaining cost leadership.
Strategic alliances should be put in place so Ryanair can achieve an extensive geographic network, with bases placed strategically around Europe
airports. By consolidating with Norwegian airlines and creating a strategic partnership, with a percentage in each other's shares would allow for greater
scope and assurance from the unpredictable economic conditions.
Swift market responses need to be made by Ryanair, such as capitalising on the failure of other European airline by opening new routes on their
existing failed ones, this will achieve greater economics of scale and thus costs fall. Ryanair should continue to look at the many airlines that have a
limited geographic area
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Taxation on Inflation in Ireland
Taxation on inflation: there has been a rise recently in Ireland. The this accounted for families and prosperity. Yet they had to allow for a bigger wage
increase. This way they can compensation for the increase of inflation.
Irelands working week consist of a Monday to Friday. The maximum hours that can be worked are 48 hours and the legal working age starts at 16.
Ireland has no control over the maximum and minimum price of any goods. However, the retailer and service provides apply to the industry
regulator for approval for any price increase. financial services for the suppliers don't have to apply for approvals for changes in price, they must
however inform the central bank of Ireland of any such changes.
Ireland has been a member of the European union since 1973. Their trade policy is the same as that of other members of e.u. since they are part of a
membership of the e.u. they have nontariff barriers on agriculture and manufacturing. Subsidies quotas import bans and restrictions for some services
and goods, they have some market access restrictions in some service sectors. Also, nontransparent and restriction standards and regulations.
The welfare and safety wealth at work general application regulation 2007 contains an widespread list of unambiguous workroom health plus safety
instructions that each company must bear by.
Irelands company has been through a revolution the last couple of years. They have evolved from "an agricultural focused economy to a recent
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Looking Into Career Development : Alan Joyce And Howard...
Looking into career development, skills and values are a big impact because this can show how well you are heading. The business leaders that I will
be looking into are Alan Joyce (Chief Executive Officer and Managing Director of Qantas) since November 2008 and Howard Schultz (Chief
Executive Officer for Starbucks) since 1982. This essay will look into the two business leaders listed above, Alan Joyce and Howard Schultz,
reviewing their careers till present. Examining the skills, values and capabilities I admire and a career development model that fits their career path.
After, I'll be looking into my own career aspiration and what my strengths, skills, values and capabilities and which career development model fits my
path.
Alan Joyce is ... Show more content on Helpwriting.net ...
He graduated with a honours in a Bachelor of Science in Applied Science (Physics and Maths) and a Master of Science in Management Science
(Qantas, 2015, para. 9). Joyce was once diagnosed with prostate cancer in 2011 but was successfully treated.
Howard Schultz is an American business leader who was once a former owner of a basketball company called Seattle SuperSonics and a member of a
financial service at Square, Inc. He was ranked 354th richest person in the United States. He started his coffee adventure in 1981 where he travelled
from New York to Seattle to look at coffee beans and what made him love the aroma and taste of it and the owners of Starbucks carefully roasting
and choosing their coffee beans made him interested in working with the team, Starbucks (MyPrimeTime, 2001, para. 1). However, he resigned his
position as a CEO at Starbucks in 2000 then returned back to the company in 2008 as a CEO (Biography, 2015, para. 1).
Howard Schultz stated that he always wanted to do something to make a difference for the society therefore he started to do that. The values that I
admire from Schultz was his belief in employee satisfaction driving them to create customer's satisfied and pleasant about their coffee, having his
employees satisfied by having communication and training in the workplace, making high quality beverages quickly and make it how the customer
would like it to be e.g. with one sugar, skim milk or caramel sauce
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Swot Analysis Of Ryanair
Abstract
The aim of this report is to explain and analyse the role of Human Resource Management in the airline company Ryanair. To provide a background
information of organisational structure, their vision, mission and strategic goals. Outline the key challenges and opportunities faced by their Human
Resource Management.
Table of Contents
HR Strategy in Ryanair6
Ryanair HR Planning7
Managerial Judgement7
Delphi Technique8
HR Audit8
Global Macro Environment (PEST)9
Political/Legal9
Economic9
Technological9
Socio– Cultural9
The Competitive Environment10
(Porter's 5 Competitive Forces)10
The threat of new entrants10
The bargaining power of suppliers10
The bargaining power of buyers11
The threat of substitute services11 ... Show more content on Helpwriting.net ...
This was the beginning of a first fare war in Europe and the beginning of Ryanair's growth (Ryanair, 2000).
Ryanair adopted their business structure and strategy from Southwest Airlines, the largest low–cost airlines in the World. Michael O'Leary, at the time
just a tax advisor for Ryanair, was sent to United States to learn and study the business model of Southwest Airlines.
He was hired as a CEO in 1994. Company continued to develop low–cost model and gained their success (Creaton, 2014).
The company had their financial crisis during the years but managed to stay alive and fought their way to the top. Today Ryanair operates more than
1800 daily flights connecting over 200 destinations in 33 European countries. They have 87 bases across Europe and North Africa (Ryanair, 2000).
Ryanair is the cheapest airline company in Europe to date. The average flight prices from Dublin to UK starts from 9.99 euro and around 25 euro to
destinations like Amsterdam or Copenhagen (Conghaile & Breathnach, 2017).
Ryanair's Mission
According to (Ryanair, 2017) the company's mission and strategic goal is to gain a competitive advantage over rival companies and firmly establish
itself as a Europe's biggest passenger airline company, by continued improvements and offering of its low fares service.
Ryanair's strategy is based on how they differentiate themselves as a lowest cost airline company by implementing cost
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Economic Efficiency
Recent measures taken by the firm to achieve efficiency. (Distinguish carefully as between different economic notions of efficiency in your answer).
Glanbia plc is an international dairy and nutritional ingredients group headquartered in Ireland. The company has 4,500 employees in seven countries
and sales offices in a further five. International operations include food ingredients and nutritionals while Irish operations incorporate consumer foods
and agribusiness and property. The group has three strategic joint ventures which are based in the UK, USA and Nigeria. The company has the early
2000's expanded its international based projects and acquired new sectors of the world market by mergers and acquisitions.
Due to the economic ... Show more content on Helpwriting.net ...
Arla foods ingredients has given itself the task os establish local production before 2013 in the united states. A good sign for glanbia for the near
future is that Arla foods aren't looking to make a major move into the American market but merely get a foothold in the market for future expansion.
For now the company feels it's European market can be expaned more in countries like France Norway and Germany.
|No.1 |No.3 |
|Denmark |Germany |
|Sweden |Poland |
|Finland | |
|Holland | |
[pic]
Kerry group is a world leader in food ingredients and flavours serving the food and beverage industry and a leading supplier of added value brands and
customer branded foods to Irish and UK markets.
The group has organically and through a series of strategic acquisitions in its relatively short
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Easyjet Research Paper
Cheap Flights from London Gatwick to Munich Airlines that Fy from London Gatwick to Munich Easyjet is the only airline that currently offers
direct flights from London Gatwick Airport (LGW) to Munich Airport (MUC). However, you can also fly with Vueling, Aer Lingus, or Norwegian
Air International if you don't mind stopping in Barcelona (BCN), Dublin (DUB), or Oslo (OSL). Having trouble deciding on flights? Try setting up
a price alert with Skyscanner's search tools so you never miss a great travel deal! Departing from London Gatwick London Gatwick Airport is located
about 50km from London's city center, and can be reached easily by taxi or public transit. Long–term parking is available at the airport for
approximately $40 CAD for the first day, and $32 for each day afterward. If you park at one of the airport's available car parks, there is a free shuttle
bus service every 15 minutes that can take you to either terminal in 5 minutes.... Show more content on Helpwriting.net ...
There is free wi–fi for up to 90 minutes (with additional time for a fee), as well as charging stations for your devices and free magazines and
newspapers available in the departures area to keep you entertained. Arriving in Munich After landing at the airport, follow the overhead signs to
collect your baggage and make your way through security. Despite being about 45 minutes away from the city center, there are a few easy ways to get
to your hotel from Munich Airport: Lufthansa Airport Bus: Departs from outside of both airport terminal between 6am and 10pm, and heads to the city
centre, stopping at the main train station along the way (40 minutes, $15.25) Train: There is a train station within walking distance of both terminals–
just follow the signs that say
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Ryanair's Pricing Strategy Of Ryan Air
Ryanair positioned itself as a low cost airline, which delivered services equivalent to that of British Airways and Aer Lingus. In terms of service
quality, they positioned themselves in the same category as the aforementioned airlines, but at the same time, charging a relatively low price when
compared to British Airways and Aer Lingus. Their strategy was to deliver first rate/ good quality customer services and offer meals and amenities
comparable to that of British Airways and Aer Lingus. The second strategy was to charge a single fare ticket of IВЈ98 on it Dublin–London service,
which was very low when compared to British Airways and Aer Lingus's rate of IВЈ208 or IВЈ99 if booked in advance.
Ryanair used the penetration pricing strategy, ... Show more content on Helpwriting.net ...
This reaction of Ryanair's competitors will be discussed more lately in this paper. Given that Ryanair is a new airline, chances of survival will be slim
if they engage in a price war.
If all is in favor of Ryanair, they will be able to acquire a sizeable portion of its competitor's market share for that route, as well as acquire new
customers from other transport options such as trains and ferries, by offering a faster commute. To compare the price with competitors and consider
this opportunity for Ryanair's service between Dublin and London, Ryanair should estimate the cost and the possibility of seats sold by using British
Airways revenue and cost in exhibit 4 of the case study.
From the exhibit 4, Ryanair can calculate the possibility of seats sold by finding the ratio of customers who do not book the seat of British Airways in
advance and compare to its own seats available annually. The British Airways average revenue per passenger equals to IВЈ166.5. Also, British Airways
is selling its ticket at the price of IВЈ208, and IВЈ99 for early advance booking. Therefore, only around 38.07% of British Airways' customers bought
the seat in advance, while the rest, 61.93%, paid for full amount of IВЈ208. That means the round–trip passengers around 309,633 persons out of a half
million paid at the price of IВЈ208. On the other hand, Ryanair would run only four
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Strategic Analysis on Ryanair
TABLE OF CONTENTS Introduction| 2| Analysis| 3–7| Problems| 7| Solutions| 8| Conclusion| 9| References| 10| Word Count: 2061 Introduction
Ryanair was founded in 1985 by the Ryan family, which was headed by Tony Ryan. It was the first budget airline in Europe, modeled after the
successful US carrier, Southwest Airlines. It was founded to provide scheduled passenger airline services between Ireland and the UK, as an
alternative to then state monopoly carrier, Aer Lingus. At the beginning, Ryanair was a full service conventional airline, with two classes of seating,
leasing three different types of aircraft. Despite growth in passenger volumes, by the end of 1990, the company faced a great conflict, disposing of five
chief... Show more content on Helpwriting.net ...
In a way, the competitive advantage of Ryanair would be the low fare, as there is not much differentiation on airline services. As long as the
passengers reach the destination safely, there would be no problem; therefore price is the main factor. Central Problems After evaluating the
analysis, it can be concluded that there are several central problems that exists within the strategy of Ryanair, which are poor customer and media
relations, poor employee relations and the rising of fuel prices. Due to the low fare, Ryanair would have to cut cost in many areas of the service
without impacting the core competence, which is transporting people safely to their destinations. However, due to the cutting cost, Ryanair
neglected the quality of other services. According to a poll of 4000 travelers around the world by TripAdvisor in October 2006, Ryanair was voted
the world's least favorite airline. Ryanair scored badly in the category that included comfortable seats, security, never lose my luggage, best
amenities'. Ryanair only scored well on the 'best fares'. Moreover, the customer service was compromised as unfriendly staff was cited as the worst
part of the Ryanair experience. In one incident, it charged a customer with cerebral palsy ВЈ18 to use a wheelchair. Ryanair then charged 50–cent
wheelchair levy on every passenger ticket due to the protests. Poor treatment of customers whose
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Essay On Irish Potato Famine
Learning about the Irish potato famine of the 1800's that drove millions to America may seem like a boring topic for most people to learn. Sure, it
impacted the job market, but what does it matter to most? Well, if it wasn't for the potato famine, I would've been born in Ireland. My personal
identity would not be complete without my background as an Irish. My great great great grandfather came over from Ireland during the potato famine of
the 1800's. Later on, he married another Irish immigrant–a woman younger than him. Due to the fact that my family's ancestors came over from
Ireland, I identify as Irish. This identity has impacted my life. As a child, my parents sang me songs that I assumed every kid was hearing. It wasn't
until much later that I realized that the ... Show more content on Helpwriting.net ...
Excitement was with me as we boarded Aer Lingus and set off for Ireland. It was an indescribable feeling when we landed at the Shannon Airport
and stepped outside. We were in the land of my ancestors. Driving down the narrow roads and passing so many green fields and sheep, I thought
about what it was like for my ancestors to live here during such a bad time. The entire time we were there, it was cold, and it rained a bit. If I had
been just another tourist on the Cliffs of Moher, the experience would've been completely different. My irish identity shaped my experience in Ireland.
From birth, my heritage has been ingrained in me, reiterated throughout my childhood. It's a necessity for me to know where I come from, and
being raised the way I was definitely helped that. Being Irish also gives me a group of people who have also come from Ireland. We can relate to
each other in that we have been to Ireland to visit, but we weren't born there. My Irish identity has given me a heritage to claim, and with that, shapes
my experiences as a
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Case Study Summary: Ryanair's Launch Strategy?
Summary: Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline services between Ireland and the UK, as an
alternative to the then state monopoly carrier, Aer Lingus. It started out a full service conventional airline, with two classes of seating and leasing three
different types of aircraft. However, despite growth in the passenger volumes financial problems were of a growing concern.
A. 1. What is your assessment of Ryanair's launch strategy?
Generally speaking, the launch strategy of Ryanair was not the best one for that moment in time. They began operations between Dublin and London,
in a very saturated market, which was already served by two competing and very experienced companies owned by the governments: ... Show more
content on Helpwriting.net ...
Since Ryanair is looming their highest return–on–capital route, it was expected that, not to lose the passengers volumes, both airlines will start to offer
lower fares and greater frequency of flights. It is not likely that BA and AL will try to match the exact prices of Ryanair because they have other
factors that would influence their customer base to remain loyal. Also, the majority of their costs are fixed, making it difficult for them to quickly
reduce their operating expenses without significant financial losses. Not only will BA and AL have to figure out ways to lower their costs, they
will also need to reassess the limitations they have on their tickets. Ryanair is offering tickets without any restrictions, so even if BA and AL came
close to their price, the customer may still choose Ryanair if the others do not make policy changes. They offer a variety of classes of service, from
first to economy, while Ryanair has less complicated offer– one class on one type of plane. BA and AL were assuming that the deregulation of the
airline industry, particularly in the United Kingdom, will allow them to expand their routes and cover more of their significant overhead. Some expected
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A Report On The Executive Of The Company As Business Analyst
Introduction: I have been asked to present a report to the CEO of the company as business Analyst in a multinational company and critical analyse the
complexities of different types of organisations, their structures and the interrelationship between their organisational functions. In this report we would
investigate and discuss its two competitor organisations see how they differ from this multinational organisation. I have for this report chosen 1.British
Airways– 2.Thomas cook 3.Aer Lingus 1.Overview of different types of organisations, their types and the growth in international business environment
Organisations are groups of individuals functioning towards the similar goals or having the same rationale. It is a social entity of people that is
controlled and managed to meet a need or to follow collective goals. All organizations have an administration structure that determines affairs between
the different actions, tasks and the members. There is also a subdivision of responsibility to carry out these different tasks. Organizations are subject the
surrounding environment and are directly or indirectly affected by the environment. There are three different types of organisation 1. Profit
organisations 2. Non profit organisations 3. Non government organisations Profit Organisation: A business or an organization whose main objective is
making profits, as opposed to a non profit organization which focuses on an aim such as helping the society and is concerned with
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Swot Analysis Ryanair
Strengths – Ryanair is one of the largest European airline company and it keeps growing by launching new routes and opening new bases. Ryanair
was the first company in reducing ticket costs and keep them low at all times. Low fares area key strength of the company and very big advantage
over other airlines. Another strength of the company has a strong brand which means it's widely recognised. Ryanair established in the European
market share. The current market cap in millions is ВЈ17,729.86 according to London Stock Exchange. (Appendix 1) The last strength of Ryanair listed
is the ability of landing in over 200 destinations on 33 countries. Weakness–Internally, there has been serious strategic issues with current employment
model applied by Ryanair. Statistics shown that the average length of service for pilots is about 4.6 years and average of 386 pilots leave Ryanair
each year since 2012. This is caused by precarious nature of their employment relationship including disrespect towards pilots and cabin crew, failure
of giving scheduled time off and working over contracted hours. In this case precarious work condition means that many Ryanair pilots don't have
fixed permanent contract. Pilots are grouped into Irish agency companies which have between 5 and 8 pilot directors, those agency companies then
subcontract into a UK labour provider of pilots and then that UK provider provides the pilot labour into Ryanair. This causing a big distance between
Ryanair and the
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Case Study Of Jetblue
JetBlue Airways Corporation, JetBlue for short, is one of the biggest air travel company in the United States. JetBlue is the 6 largest airline in
America. The company is headquartered in the Long Island City neighborhood of the New York City, with its main base at John F. Kennedy
International Airport. It also maintains corporate offices in Cottonwood Heights, Utah, and Orlando, Florida. During it operation, JetBlue has faced up
with many tragedies and problems. Typically is the problematic flight happened in Valentine day February 14, 2007. Most people thought that
misfortune even puts an end for the airline. Nonetheless, JetBlue not only survives, but it growing, earns a profit and become the favorite airline of
many people. So we wonder... Show more content on Helpwriting.net ...
2.Moving on to the second question '' Describe in detail all the facets of JetBlue's product. What is being exchanged in a JetBlue transaction? ''.
People donate their time, money, effort to book a flight successfully, they also exchange the opportunity to use service of some other airline to
experience all the facets JetBlue's market offering. And JetBlue has done a great job to not let their precious customer down. In some aspect,
JetBlue's service is considered ingenious cause they have made effort to distinguish their service in a better way to their competition. They give
people a unique and pleasant service in exchange for their cash. Now let point out in detail all the facets of JetBlue's product that make they become
a better option for the traveler. First is the features and services on the flights. JetBlue gives the customer three more inches of legroom than the
average airline seat. If that even cannot meet the need of some people they can pay a litter extra about ten dollars for having more space and a flatter
recline position. Moreover, there are comfortable seats with leather lining, give the customer the feeling that they are experiencing a luxury
service.Furthermore, in addition to snacks and free soft drinks, flyer is able to enjoy some special food product offered by JetBlue as Terra Blues
chips, immaculate Baking's Chocobillys cookies, and Dukin's Donuts coffee. We can sense the deliciousness from the name. More important, the
customer does not feel
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Ryanair And Ryanair Case Study
How did the deregulation of air transportation in Europe foster entrepreneurial behavior and innovation in the European airline industry over the last
twenty years?
Case studies: SAS Airline & Ryanair
Master Thesis in Entrepreneurship and Dynamic Business Contexts
Spring 2007
Supervisor: HГҐkan Bohman
Entrepreneurship Master Program
Authors: Gilles Helterlin and Nuno Ramalho
Acknowledgements
We would like to express our gratitude to all who have contributed to the realization of this
Master Thesis. A warm thank to our supervisor, HГҐkan Bohman from USBE (UmeГҐ School of
Business), for his guidance, his precious help and his advises during the last months.
To Mr. Lundvall, from LFV (Luftfartsverket), Mr. Valinger from... Show more content on Helpwriting.net ...
Our study shows that EU deregulation altered the five competitive forces in European airline industry and in turn this fostered entrepreneurship and
innovation, as a reaction of firms to adapt to the change in their context. The reaction of Ryanair and SAS through entrepreneurial and innovative
behaviour was different due to the differences in their business model. We argue that the removal of barriers to new entrants and the increased rivalry
between firms were the main forces that fostered entrepreneurship and innovation. We predict that if further EU deregulation comes (as it is the trend)
this will generate more opportunities to entrepreneurship and innovation like it generated in the past.
TABLE OF CONTENTS
1 INTRODUCTION ........................................................................................................................................................ 1
1.1 BACKGROUND OF THE STUDY.................................................................................................................................. 1
1.2 RESEARCH PROBLEM............................................................................................................................................... 3
1.3 RESEARCH OBJECTIVES ........................................................................................................................................... 4
1.4 DEMARCATIONS AND LIMITATIONS OF THE
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What Is Ryanair Competitive Advantage
Introduction: Ryanair is the most successful and profitable airline in the world. It achieved this by adopting various practices that gives it a
competitive advantage over rivals. Ryanair aims to offer air travel services at low rates and this attracted many passengers while at the same time it
maintains a continuous focus on cost reduction, operating efficiencies and continuous improvements. In this report, we will start presenting the history
of Ryanair airline. After this, we will discuss the competitive advantage of Ryanair, how they gain it and build it. And we will answer whether Ryanair
was able to sustain its competitive advantage or not and why. Also, we will identify the competitive strategy that Ryanair pursued and we will list the...
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What allow Ryanair to gain competitive advantage its ability to provide air travel services at low rate which allowed them to have a profit higher
than the industry average. What building blocks of competitive advantage are there in the case? Although easyJet show up and competed with
Ryanair for the low cost market and some of the same routes as Ryanair, Rynaie was able to remain its strong position in the market. Ryanair had
distinctive operational models. The most important distinctive feature that distinguishes Ryanair from its main competitor easyJet and other
competitors is that the fares are the lowest in the market. In 2002 the average fares of Ryanair were 30% cheaper than easyJet. In addition to all this,
Rynair showed better punctuality record in taking off and landing on time than its competitor easyJet. Ryanair was making a good profit from flying to
secondary airports which gave them a cost advantage because they avoid huge gate and landing charges and their flights in the less congested airports
allow them to improve the turnaround time and the arrival and take off
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Relationship Of Etihad Airways
Airport and airline relationship of Etihad Airways
Etihad Airways is committed to the growth strategy of cooperation to get the scale needed to compete in the global air transport market. Beyond
organic developments, the airline has a strong base of code–share partners, offers access to hundreds of destinations that are not served by its own
aircraft. In 2013, Etihad Airways has signed a new code–sharing agreements with seven airlines – South African Airways, Kenya Airways, Air Canada,
Korean Air, Air Serbia, Belavia and airBaltic. Code–sharing refers to a practice where a flight operated by one airline is jointly marketed as a flight for
one or more other airlines.
This addition takes the number of code–sharing partnership to 47 by the end of this year. Among the... Show more content on Helpwriting.net ...
This represents an increase of 30 percent over 2012, and 21 percent of total revenue this year for Etihad Airways, which was reciprocated by donating
passengers and goods to the company aviation partners. In the case of equity partners, the benefits are even greater, significantly reducing unit costs
and operating expenses through activities including the sharing of resources and joint procurement. In 2013, Etihad Airways operated a number of
services using a fleet of aircraft from Jet Airways, Virgin Australia and Air Seychelles will also provide a set of partners including Air Seychelles and
Air Seychelles to meet short–term needs. Etihad Airways airberlin surplus hired 50 pilots and shared new office facilities in Germany with Air Berlin,
provides training for pilots and cabin crews from several partner airlines and participate in joint sales and marketing activities with several partners
worldwide. Etihad Airways also extend the benefits of its equity relationship by connecting companies to cooperate with one another, and also to
integrate the company's partner in Etihad Guest loyalty
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Jetblue And Jetblue 's Success
As of 2016, JetBlue has turned itself into an airline that is now viewed as strong competition amongst the largest US national carriers that have been
around for multiple decades.
In 2015, JetBlue had arguably its best year in the company's existence and more growth is expected. Demonstrating how their differentiated business
model can create strong results,
JetBlue had revenues of over $6.4 billion, a record annual net income of $677 million, seven consecutive years of profitability, a year–over–year net
income that more than doubled, a strengthened balance sheet, growth in return on invested capital of more than seven percentage points between
2014–15, expanded operating and pre–tax margins that were more than any other major US airline, and a stock price that increased nearly 43% and
outperformed the S&P 500 as well as the Airline Index. JetBlue's success during 2015 didn't stop there, as they were named one of the Top 25 Places
to Work in Forbes annual survey and received an 11th consecutive J.D.
Power award. This in large part contributed to their employees earning record profit sharing of about $150 million.
JetBlue also rolled out a new feature in 2015 coined "Fare Options". This service provides customers the ability to select one of three fares based on
what they value most. This includes things such as checked bags, TrueBlue bonus points, or flexibility to adjust travel plans.
While competitors are still using the static fee structure, JetBlue's innovative approach
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Cost Leadership Strategy Of Ryanir
Since the very beginning of Ryanair's existence. the atmosphere was tense between British Airways Aer Lingus and Ryanair. As Ryanair grew and
grew the competitors got less and less money in turnovers. After twenty years on the "field" in 2006,Ryanair offered Aer Lingus an all cash offer
which they did not take. The Employee Shared Ownership Trust voted to oppose the takeover of Ryanair Holdings with 97%. Days after this
takeover offer, Ryanair increased its stake from 19% to 25% which shares they bought from a US hedge fund. In 2008 they bought more shares and
increased it up to 29,82%. In the beginning of 2009, Ryanair had an offer for Aer Lingus, but again they did not accept it. After all in 2015 Ryanair's
board voted to accept the International ... Show more content on Helpwriting.net ...
To achieve it, companies must: improve process efficiencies;g ain unique access to a source of lower cost materials; outsource appropriate functions
and avoid certain costs altogether.
The airline industry has long been striking profitable deals with airports to keep certain routes open. Ryanair's business strategy is made up of four
guiding principles: employ a single type of plane, constantly review overheads, turn aircrafts around quickly and abandon point's schemes.
In 2002 Ryanair ordered 100 Boeing 737–800 jets with options to buy a further 50 in a transaction that was worth a price of $9.1bn. Ryanair secured
a significant discount. With newer, more fuel efficient planes than many of its rivals, Ryanair was able to hold down costs, charge lower fares and
pack jets with passengers who might not spend a huge amount on tickets but spend profitable sums on food, hotel reservations and check–in charges.
Ryanair has introduced a number of measures which have helped the business make a profit of €503m in the past financial year. These include
being the first airline to implement baggage charges, working to eliminate the need for check in desks and cutting the weight of its aircrafts;
examining the possibility of larger aircraft doors, to speed up
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Ryan Air an E-Commerce Organization
Table of Contents {text:bookmark–start} Definning e–commerce {text:bookmark–end} There are nearly as many definitions of e–commerce as there
are contributions to the literature. (Damanpour, 2001) defines e–commerce as "any net business activity that transforms internal and external
relationships to create value and exploit market opportunities driven by new rules of connected economy". E–commerce is a "disruptive" innovation
that is radically changing the way organizations do business (Macgregor and Vrazalic, 2007). In other words a organization who do majority of their
sales via internet, electronic procurement and electronic payment. As in the given case of RYANAIR AIRLINES. {text:bookmark
–start} Ryanair
Airlines in brief... Show more content on Helpwriting.net ...
In Transactional Leadership, "Managers take an initiative in offering some form of need satisfaction in return for something value by the
employees". On the other hand Transformational Leadership is the "Process of engaging the commitments of employees in context of the shared
value and shared vision". Thus from the above statements we can analyze that Ryanair has a characteristic of Transformational Leadership as they
are courageous and believe in people. They are visionaries and can cope with complexity and ambiguity. There are four types of Leadership styles
and they are(1) Autocratic leadership where a " Leader takes the decision and announces them, expecting subordinates to carry them without
question". (2) The Democratic where a " Leader would characteristically lay by the problem before his or her subordinate and invite discussion".(3)
The Consultative where a " Leader confers with the group members before taking decision and, in fact, considers their advice and their feelings
when framing decisions". (4) The Persuasive where a "Leader at this point on the scale also takes all the decision for the group without discussion or
consultation but believes that people will be better motivated if they are persuaded that the decision are good ones". From the above four types of
Leadership we can analyze that Ryanair has been performing the Persuasive Leadership because it's the management decision to be a lowest fare airline
with some innovative ideas in cost cutting
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Ansoff Matrix Model Of Ryanair
Executive Summary
Ryanair is an Irish airlines company set up by the Ryan family in 1985 with a share capital of just ВЈ1 and only 25 members of staff. Its first route was
launched in July 1985 from Waterford in the southeast of Ireland to London Gatwick. The expansion of the company started in 1986, when the
company obtained the permission to compete with the duopoly British Airways and Aer Lingus. For many years up to 1990, the financial performance
of the company which was negative, dramatically changed with the appointing of the new Chief Executive Officer Michael O'Leary. The new
management vision was to restructure the company based on the Southwest Airlines prototype business model with a culture of low–cost / low fare.
Thanks to the European Union deregulation air transport in ..., the company opened new routes and bases, increase its market share and became the first
airline in Europe to carry over 100 Million international customers in a calendar year (Ryanair,2016) due to its low cost competitive advantage. The
purpose of this report is to comment at the first part how Ryanair achieve its competitive advantage through the RBV analysis (Barney,1991), the
second part will assess its approach to the diversification through the Ansoff matrix , the third part will discuss the company's organisational culture
using the cultural web modeland last part its internationalization strategy.
1.Introduction
Through the Ryanair's case study (Eleanor O'Higgins), the aim of this
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Case Study: Internal analysis of Ryanair
Case Study in: Johnson, G. et al., 2005. Exploring Corporate Strategy. 7th ed. Essex: Pearson Education Ltd.
1. Internal audit of tangible, financial and intangible resources
Tangible Resources
1. Human Resources
* Ryanair currently employs 2000 people (2003) from 25 nations.
* The pay is performance related and among the highest in the airline industry (Annual Report 2004, p. 5). Travel concessions and participation in the
share option program is granted to all employees. In 2003 over 30% (639 in total) of employees took part in the stock option program – the average pay
per employee was about 53.000 (Annual Report 2004, p. 21).
* CEO Michael O'Leary has significantly shaped Ryanair.
2. Physical resources
* Ryanair operates 72 ... Show more content on Helpwriting.net ...
5), keeping people who already know the company which in turn reduces costs (introduction...) and enhances motivation. Employees have also the
interest to bring the company forward because over 30% already are shareholders.
Sustainable competitive advantage according to Lynch (2003) of Ryanair is: the low cost basis (key success factor), offering of the cheapest ticket
prices (in order to target price sensitive customers) and the abilities of the management and the CEO (leadership) of Ryanair. In addition to that first
mover experience (experience from competing against BA and Aer Lingus at the beginning) may also have benefited the company.
3 Ryanair's dynamic capabilities
Dynamic capabilities provide a constant flow of opportunities (Lynch, 2003), from which Ryanair could take advantage in order to sustain the
competitive advantage:
* Ryanair immediately responds to opportunities and threats in order to cut costs and sustain the low cost basis (e.g. abandonment of ice cubes...) or to
increase profits (e.g. ancillary services...)
* Constantly shaping the internet as the main communication device to its customer (marketing and sales, booking...).
* Ryanair wants to provide the lowest fares. Therefore the company must be very flexible and always at least react (or
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Ryanair Case
Ryanair Case Analysis
1.What is your assessment of Ryanair's launch strategy? Was it a good strategy? In your answer consider potential market demand, pricing and
Ryanair's likely cost structure.
After having grown up in the airline industry, the Ryan brothers proved they were able to operate a scheduledairline successfully with their 14 seat
flights between southeast Ireland and a secondary London airport. Their strategy was to expand to the Dublin–London route, a known lucrative route
for British Airways and Aer Lingus. Ryanair planned to have unrestricted fares priced at IВЈ98, while providing first–rate customer service.
Ryanair chose to enter the market at a time when the consumer base needed a low cost alternative and the ... Show more content on Helpwriting.net ...
The majority of their costs are fixed, making it difficult for them to quickly reduce their operating expenses. Not only will BA and AL have to figure
out ways to lower their costs, they will also need to reassess the restrictions they have on their tickets. Ryanair is offering tickets without any
restrictions, so even if BA and AL came close to their price, the customer may still opt for Ryanair if the others do not make policy changes.
In addition, BA and AL are likely to launch advertisement campaigns to try and convince the consumer market that their level of service and
experience in the industry is worth paying a higher price. BA has retail shops that offer in–person service and are known among business travelers for
their in–flight amenities. Additionally they offer a variety of classes of service, from first to economy, while Ryanair has one class on one type of plane.
BA and AL are assuming that the deregulation of the airline industry, particularly in the United Kingdom, will allow them to expand their routes and
cover more of their significant overhead. British Airways has been continually increasing their revenue and profit from a low in 1981. BA carries
more international passengers than any other airline and has an overall higher operating margin than in Europe alone. It would be safe to assume that
BA will focus efforts on other markets and not feel too much pain from losing some business on this route.
3.How costly
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A Report On The Airline Business Industry
Introduction
In the airline business industry it is requirement to have outstanding leadership and culture to achieve a strong business operation and management.
The two airlines discussed in this report are Ryan air being the main business of the report with Easyjet being the business for comparison and
explanations in leadership styles and culture that are carried out and utilised. Both business offer the same services which are cheap fare flights.
RyanAir and Easyjet:
tickets are sold directly to customers
Non luxury flights
Singular type of air carriers to minimise staff training and maintenance costs
offering a single class cabin so all passengers receive the same service
Ryanair
It is an Irish–owned airline that was established in 1985 by the Ryan family to compete with Aer Lingus and British Airways on the Ireland–U.K.
routes. Ryanair offer a point a to point b service and is a low budget airlines and aims to turn flights around within 25 minutes and routes are
consistently the shortest of all the Low Cost Carrier's.
RyanAir has transformed itself from an industry minnow into one of Europe 's biggest airlines over two decades. However, its obsessive focus on the
bottom line has dented its public image. Such as; making employees pay for their own work attire and training along with hidden fees for customers
that require extra services.
Easy jet
Easyjet strongly follow the similar low–cost model like Ryan air and do not offer any luxuries and similarly
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Ryanair
Instructor's Manual
368
© Pearson Education Limited 2005
CASE TEACHING NOTES
Ryanair – The Low–Fares Airline
Eleanor O'Higgins
1. Introduction
Ryanair was the first budget airline in Europe, modelled after the successful US carrier,
Southwest Airlines. The case offers students the opportunity to evaluate the strategy of
Ryanair against the backdrop of the European airline industry and the burgeoning budget sector. Business students at all levels enjoy this case and
relate to it, since air travel is an activity virtually everyone has experienced and we all have war stories to tell about the various airlines with which we
have travelled.
The Ryanair case has been used successfully with students from Ireland and other
European ... Show more content on Helpwriting.net ...
Armed with the industry analyses, students can do some preparation between
Instructor's Manual
370
© Pearson Education Limited 2005 sessions, either individually, or in groups, to deal with an evaluation of Ryanair itself, the subject matter for the
second session (approximately 2ВЅ hours).
5. Questions for discussion
The crux of the case is to evaluate Ryanair's strategy, having analysed the competitive arena in which Ryanair operates and its own particular mix of
resources and operations.
This entails an assessment of the sustainability of Ryanair's strategy. The issues in the case can be broken down by addressing the following list of
questions which follow a natural sequence that can generally be applied to the strategic evaluation of most companies. First class session:
1. Analyse the European airline industry, with implications for the budget sector, and especially Ryanair.
Second class session:
2. Evaluate Ryanair's strengths and weaknesses.
3. Is Ryanair's strategy sustainable?
4. Would you recommend any changes to Ryanair's approach?
5. Evaluate the strategic leadership of Michael O'Leary.
6. Case analysis
6.1 Analysis of the European airline industry, emphasis on budget sector
(Refer to Chapter 2 in Exploring Corporate Strategy.)
The best way to approach this question is to go from the broadest unit of analysis to the
narrowest:
... Get more on HelpWriting.net ...
As part of marketing in business, strategy is a leading...
As part of marketing in business, strategy is a leading light because it is a plan of action designed and followed by businesses to become successful.
Three companies in the same industry can offer similar products in a completely different ways. Branding is everything and understanding what
customers want determines a company's brand position. Airline companies are great examples of numerous companies offering the same product.
Major differences in brand and quality management come when comparing three airline companies that offer the same product such as Spirit Airlines,
Jet Blue and American Airlines. Although their product is the same, the processes to marketing their product are completely different. Spirit Airlines is
an... Show more content on Helpwriting.net ...
As of October 2013, JetBlue serves 84 destinations in 24 states, and 12 countries in the Caribbean, South America and Latin America. JetBlue is one
of the largest airlines in the Northeast United States. In 2007, USA Today reported that JetBlue planed to enter into a partnership with Irish flagship
carrier Aer Lingus. The alliance will facilitate easy transfers to both airlines' customers, but will not allow either airline to sell seats on the other
airline, unlike traditional code share alliances, meaning customers must make individual reservations with both carriers, the newspaper said. With a
goal of improving flight experience, JetBlue became the first airline to offer all passengers personalized in–flight entertainment. In 2000, flat–screen
monitors were installed in every seatback which allows customers live access to over 20 DIRECTV channels at no additional cost. American Airlines
serves four continents, trailing Delta Air Lines and United Airlines, which both serve six. This company has been in the industry for 69 years. It is
one of many airlines that have played an important part in the history of air transportation in the United States. Starting as a mail company called
"Aviation Airways", which carried bags of mail from Chicago to St Louis is how this company began to rise. In 1934 American airways became
American Airlines, Inc. A few years later it
... Get more on HelpWriting.net ...

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Ryan Air Case Study

  • 1. Ryan Air Case Study Ryan Air Case Study Strategic Management Names: Table of Contents Step 1: Identifying the positioning questions 1.1 Summary of the casepg. 2 1.2 Main Questions & Problemspg. 3 1.3 How was the strategy developed?pg. 3 Step 2: Gathering & analyzing the facts 2.1 Ryan Air Environment Analysespg. 3 2.2 Ryan Air Strategic Capability Analysespg. 5 2.4 Ryan Air Competitive Strategy & Business Model Analysispg. 5 2.5 Ryan Air Stakeholder expectations & purposes Analysispg. 7 2.6 Ryan Air Economics Analysispg. 9 2.7 SWOT Analysispg.10 Step 3: Alternative Courses of Action 3.1 Alternative courses of actionpg.11 3.2 Evaluation considering mission & long term goalspg.12 3.3 Advantages & ... Show more content on Helpwriting.net ... These should include the rise in fuel costs and considering history, terrorist attacks. Social Even though surveys show that customer satisfaction is not up to the standards of their competitors such as Easyjet, Ryan Air is still an attractive choice for the customer base which is budget conscious and likes no frill and low cost travel. Technological
  • 2. In 2000, Ryan Air launched its website www.ryanair.com where over 95% of bookings are made online. This saves the company from marketing and agent costs, while fulfilling the customer's expectations of a simple online booking system. Further, Ryan air keeps upgrading its fleet to modern aircraft. Environmental Optimizes efficiency, as among the 20 largest airlines by passenger volume Ryan air has shown to be the cleanest, using barely more than a third the fuel to transport its average passenger one mile compared to the least efficient, American Eagle. Legal Ryan Air has been in court for misleading advertising campaigns and inefficient services offered to the disables. Further, they have been accused of receiving illegal subsidies from an airport. Porters Five Forces Analysis: this frame work is used to determine how attractive the low cost airline industry is terms of the competitive forces. Competitive force Type of Threat Level of Threat for Ryan Air Explanation Potential Entrants Threat of Entry Low It is hard legally and very ... Get more on HelpWriting.net ...
  • 3. Ryanair History History ATR–42 in 1991 Ryanair has grown since its establishment in 1985 from a small airline flying a short hop from Waterford to London into one of Europe's largest carriers. After the rapidly growing airline was taken public in 1997, the money raised was used to expand the airline into a pan–European carrier. Revenues have risen from €231 million in 1998, to €1843 million in 2003 and €3013 million in 2010. Similarly net profits have increased from €48 million to €339 million over the same period.[3] [edit]Early years Ryanair was founded in 1985 by Christopher Ryan, Liam Lonergan (owner of Irish travel agent Club Travel) and Irish businessman Tony Ryan (after whom the company is named), founder of Guinness Peat Aviation and father... Show more content on Helpwriting.net ... However, the airline recovered posting profits soon after. The enlargement of the European Union on 1 May 2004 opened the way to more new routes as Ryanair and other budget airlines tapped the markets of the EU accession countries.[16] In February 2005, Ryanair announced an order for a further 70 Boeing 737–800 aircraft, along with an option for a further 70. This was expected at the time to allow Ryanair to increase passenger numbers from the 34 million expected in 2005 to 70 million in 2011. Some of these aircraft would be deployed at Ryanair's 12 European bases, others to 10 new bases the company intended to establish over the next seven years.[17] In June 2006, the company announced that in the quarter ending 30 June 2006, its average yields were 13% higher than the same quarter of the previous year[18] and its passenger numbers were up by 25% to 10.7 million, although year–on–year comparison was difficult, because of the movement of Easter from first quarter 2005 to second quarter 2006. Net profits (€115.7 m) increased by 80% over the same quarter in 2005. Management indicated that the level of growth may not be sustained for the remainder of that year, despite adding 27 new aircraft and opening new routes.[19] Ryanair's passenger numbers have grown by up to 25% a year for most of the last decade. Carrying under ... Get more on HelpWriting.net ...
  • 4. Issues and Challenges Organisations Face When Pursuing... "Critically discuss the issues and challenges organisations face when pursuing organic rather than external methods of development" Nowadays every company faces the need for strategic growth in the fast moving business world where every organisation has to be flexible and needs to adapt to changeable environment. A lot of organisations fail to growth successfully. What are the main reasons for inefficient strategic growth? In order to answer this question, it is essential to understand what the methods of strategic growth are in general and how the company can choose the most suitable. Two methods of strategic growth are existing – the internal method (organic growth) and the external method. According to Investopedia... Show more content on Helpwriting.net ... Couslon – Thomas (2008) is arguing that the companies are wasting inconceivable amounts of money for "fashionable activities and acquisitions that reduce shareholder returns." Instead of that, organisations have to explore the opportunities, exploit corporate know–how and strengthen the relationships with customers, among employees and other stakeholders. Both researches indicate that the organic growth is not fashionable method to develop company's strategy and it is not efficient mainly because of the lack of knowledge. As described in the introduction, inorganic growth is the strategic development which uses the competencies of an external organisation to achieve the progress. The external methods could be acquisitions, mergers, joint ventures, partnerships or alliances. (Thompson, Martin, 2005) Inorganic growth is often described as a faster way to grow compared with the organic growth. According to Chari (2004) external method helps to expand the company faster, access to new markets and the customers, decrease the competition and access to new technologies. However the author is arguing that the inorganic strategies as mergers, acquisitions have very high failure rates and therefore a company can lose a lot of money. As it is mentioned previously, there are different forms of the inorganic growth. The main forms of the external method, acquisition and merger, will be ... Get more on HelpWriting.net ...
  • 5. Strategic Analysis on Ryanair TABLE OF CONTENTS Introduction| 2| Analysis| 3–7| Problems| 7| Solutions| 8| Conclusion| 9| References| 10| Word Count: 2061 Introduction Ryanair was founded in 1985 by the Ryan family, which was headed by Tony Ryan. It was the first budget airline in Europe, modeled after the successful US carrier, Southwest Airlines. It was founded to provide scheduled passenger airline services between Ireland and the UK, as an alternative to then state monopoly carrier, Aer Lingus. At the beginning, Ryanair was a full service conventional airline, with two classes of seating, leasing three different types of aircraft. Despite growth in passenger volumes, by the end of 1990, the company faced a great conflict, disposing of ... Show more content on Helpwriting.net ... The PESTEL shows that the external environment mainly works into opportunities for Ryanair with some unpredictable factors that might threaten the business operation. Example of this unpredictable factor is the fuel price. The fluctuation of fuel price might work into the advantage or disadvantage of Ryanair. For Ryanair to thrive in its business operation, it ought to overcome these rampant external factors and exploit the external factors that would improve their business operation such as the EU expansion. With the EU expansion, Ryanair can expand the ... Get more on HelpWriting.net ...
  • 6. Ryanair Executive Summary Market Description: The transatlantic airline market between the United States and Europe is the single largest intercontinental market in the world, with rigorous competition between dozens of airlines. The transatlantic market consists of passengers, both seeking business and pleasure needs. Within the first year of offering transatlantic flights, higher income professionals travelling for business purposes will be targeted, along with families and students travelling on a J–1 visa. As the market is heavily competitive, targeted segments such as families and students will be relatively elastic to a change in price, with hope of finding the best deal. If Ryanair can replicate its hugely successful model, offering savings on landing fee ... Show more content on Helpwriting.net ... Dublin is a powerful connecting hub for transatlantic routes; Aer Lingus has now turned its focus on long haul growth, resuming flights to Los Angeles, and a host of other destinations. Strengths, weaknesses, opportunities and threat analysis: Strengths: Ryanair have a number of strengths on which to build on: 1.Low costs– Ryanair has the lowest unit costs in Europe and one of the lowest when compared to international airliners. Lower costs can be passed onto customers in the form of cheaper prices, which Ryanair will need to offer in order to compete. Research from the Centre for Aviation showed that whether it was cost per seat or cost per passenger, Ryanair costs were less that of their competitors. (Source: CAPA– Centre for Aviation– Unit cost analysis of Emirates, IAG & Virgin; about learning from a new model, not unpicking it) 2.Low fares– This is a result of lower costs, enabling Ryanair to offer lower costs than their competitors. If Ryanair can replicate their current cost model which has proved so successful in the European market and transfer it into transatlantic routes, they could offer flights at a significant amount less than Delta and BA. 3.Size– Currently, Ryanair is larger in transporting passengers than Aer Lingus andBritish Airways. Due to its enormous size, it has given Ryanair significant negotiating power over Boeing, and has undoubtedly provided Ryanair with discounts and led to Ryanair's
  • 7. ... Get more on HelpWriting.net ...
  • 8. Jetblue's Good Service Quality ABSTRACT (Isabelle Aultman and Ben Cvek) In any business service quality is going to "make or break" the company in the long run. JetBlue has great ideas on how to compete and how to be lower priced while still gaining profit. Customer and provider gaps are all about what a customer expects, what a customer perceives, what a customer is willing to accept, what a company understands about those expectations, a company's communication both internal and external, and the company systems and processes (Zeithaml, et al.,2013). Although JetBlue had good service quality in place for the most part, it lacked the proper processes and systems to properly provide support. Ultimately, customers had expectations and were not willing to accept the ... Show more content on Helpwriting.net ... Additionally, JetBlue targeted large metropolitan areas with high average fares to compete with the larger airliners. Even small things such as more seats and a more fuel–efficient aircraft increased profits. Things seemed to be running great for JetBlue as they increased the number of destinations. All of these things kept JetBlue profitable. It seems as though JetBlue has strayed from their original core values, although, the company seems to be on the way to resolving the issues that plague them. STRATEGIC PROFILE (John Beck and Admira Salazar) Starting Off In the Right Direction Jet Blue was birthed in 1999 by David Neeleman and went public in 2000 as an independently owned and operated Airline. Headquarters is located in Long Island, New York with its main base atJohn F. Kennedy International Airportwith most of the flights occurring in the United States and the Caribbean (Docslide, 2015). From its very essences, JetBlue showed high signs of profitability, initially the company set out to sell over five and a half million shares at an average of $25 per share. However, the company actually topped off at $27 dollars selling almost 6 million in shares. Being in the airline industry means the level of competition is high, so JetBlue wanted to establish itself as a high–end airline with ... Get more on HelpWriting.net ...
  • 9. Economies Of Scale Makes A Company A Better Company Nowadays, companies want to expand as much as possible. This is shown by the increases in the number of product lines, and the expansion to new geographical markets. However, does it really make the company better off to expand? In other words, is a bigger company a better company? The concept of economies of scale plays an important role in answering this question. Economies of scale is "the effect on average costs of production of different rates of output, per unit of time, of a given commodity, when all possible adaptations have been carried out to make production at each scale as efficient as possible" (Silberston, 1972). Consequently, the higher the output, the lower average costs per product. However, does this reduction in average costs make the company a better company? An important source of economies of scale is the division of labor (Smith, 1776/1991). The division of labor can be seen as specialization. Each employee specializes on a certain step in the production process. In this case, the company can produce more units of output than they could have produced when every employee would have produced an entire product. The company is more efficient, and as a result, their average costs are lower with a high level of output. The division of labor is therefore an important source of economies of scale. The division of labor enables the firm to produce more units of output, have lower average costs, and therefore have a higher profit margin. All these components ... Get more on HelpWriting.net ...
  • 10. Persuasive Essay About Self Trust Self doubt is a strong, yet underestimated, emotion. It can squeeze into one's brain, filling all cracks of empty space like a balloon, pushing out confidence and adventure. Fear drives away the yearning to take risks and leaves one with only the ability to ponder on what could have been. As a child, I sometimes forgot that taking leaps of faith is important to maintain a joyous lifestyle. When around new people I kept my mouth shut and refused to cause any trouble. My mom now claims that this was a good thing, boasting about how I was an easy child. I'd beg to differ. My childhood was marked by the need to lay low, keeping my opinions to myself, staying quiet when others were around, and not promoting antics or chaos. I was never outgoing unless I was comfortable enough to speak my mind. I was as dormant as a doornail. My family may have been at the center of this; with my siblings being five and eight years older than myself, I had a hard time connecting with them on an emotional or social level. I was David in a house full of Goliaths. My sister graduated high school when I still played with dolls; my brother got his license when I had yet to reach middle school. I felt like an outcast in my family and that led me to stay as 3reserved as possible. This mistake led to the inability of my awkward pre–teen self to form new relationships with strangers. There was a point in my life that changed my perception of my own personality. The summer after seventh grade I embarked ... Get more on HelpWriting.net ...
  • 11. How Does Ryanair Porter's Five Forces Model As we can see in the graphic, "Ryanair uses barely more than a third the fuel to transport its average passenger one Mike comparared to the least efficient. It succeeds by ranking first or second for efficiency in load factor and seating density, while runner–up Cathay Pacific ranks first on aircraft fuel economy, distance, and freight share." (Ryanair, 2016). 1.4Analysing the Industry environment: Porter's Five Forces Model According to Porter (2008) there are five competitive forces that shape the structure of the industry. These forces are: Customers, suppliers, potential entrants and substitute products. This model is a useful tool in order to develop the competitive advantage and it will be used for identifying the competitive forces for Ryanair. 1) The bargaining power of suppliers: "Every ... Show more content on Helpwriting.net ... It is recognised for its cost leadership in the market. It operates in secondary airports which means low airport charges. Furthermore, it has a 30 year safety record and uses modern aircraft. Its additional income comes from extra baggage, additional weight and services. It has reduced costs by personalising the purchaising process. Customers are the ones responsable of printing their flight ticket, otherwise they have to pay a fee at the airport. Weakness The first weak point is that customers are price sensitive, if Ryanair does not provide the cheapest price, they will use another airline. Nowadays, Airlines are reducing and cutting costs which can influence the passengers to choose another option. Another important point is related to the brand reputation, customers know that is a low cost airline, however not everyone knows about its safety record. In addition, customer service has a bad reputation, as the interest is to provide and reduce costs, the customer service has been left behind. However, currently this is changing. Ryanair is realising that customer service is a key point for engaging them with the ... Get more on HelpWriting.net ...
  • 12. Airline Airlines : Business Strategy Course Theories And... As a result of the success story of the U.S Budget Airline – Southwest Airlines – Ryanair was established as a first low–cost airline in Europe. The case study is based on the revised Strategy of Ryanair to meet challenges within European airline industry of the budget service providers. The case discusses the business strategy the company adjusted to improve its performance in the challenging environment. To meet the aim of this case study we conducted a strategic analysis of the business environment, the industry itself, corporate and secondary information in order to get relevant data for identifying and applying Business Strategy course theories and concepts based on the case study. Overview of Ryanair Established in 1985 by the Ryan family with the aim to provide regular passenger airline services to connect Ireland and the UK, Ryanair became an alternative to the state monopolistic carrier, Aer Lingus (Ryanair, 2014). Therefore, in 1997 Ryanair acquired Aer Lingus as the leading air carrier on flights between the Republic of Ireland and the UK with 4 million passengers and a 37 per cent market share. Ryanair was a full–service conventional airline, offering two classes of seating, operating three different types of aircraft. Ryanair's goal was to hold its position as Europe's leading low–fares airline, operating frequent multi–destination flights on short–haul flights, based mainly in regional and secondary airports. The strategy was based on a mission of ... Get more on HelpWriting.net ...
  • 13. Ryanair Introduction Ryanair is one of the most profitable low–cost and low–fare airlines in the world. Even though it was merely bankruptcy in 1991, it could stand up and become very successful by 1999. An issues was what led Ryanair to huge losses in 1991, how did it re–gain its position, and what lay ahead in the next century. Analysis Prior to 1991, Ryanair had suffered from continuous losses from 1985 to 1989. The first reason that put it into this situation was that it tried to position itself as a low fare airline with the first rate services. It tried to keep low and unrestricted fare, while keep focusing on the best customer service and relationship. This mixed model was proven inefficiency. The low price could lure number of... Show more content on Helpwriting.net ... Main reason were that it abolished the mixed model, applied low cost strategy, improved its operation, reposition itself, and increase number of ancillary services. A key issue that waited for Ryanair at the end of 1999 was how to move and what to do to maintain or increase its market share. From the analysis, Ryanair should maintain its current position. However, it is strongly recommended to provide the check–through baggage for connecting flights for other airlines. This could increase number of passengers who have to transit via a route that Ryanair provided. Moreover, it should increase ancillary services by offering referral program to car rentals, hotels, and travel agencies. By doing this, it could generate more revenue to provide more services in other parts. For the in–flight service, it is suggested that Ryanair should offer rental in–flight entertainments or internet services. As for a promotion, in the best case, it could offer a free flight or IВЈ1 flight with limited seats to attract customers who never fly before or those who love travelling. In a worse case that an intense competition among employees occurs, the company should reset its pays distribution and incentives before (or along with) follow the above recommendations. Moreover, in the worst case that many more low–cost and low–fare airlines enter the same route with Ryanair, it is highly suggested that ... Get more on HelpWriting.net ...
  • 14. Dogfight over Europe: Ryanair (a) Indian institute of management Dogfight Over Europe: Ryanair (A)| Case Analysis Overview Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14–seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low–fare segment market. It initiated service from London's secondary airports. In terms of competition, Waterford and Gatwick didn't pose any challenges. In 1986, Ryanair gained a license to operate between Dublin and Luton, another secondary airport of London. In that year, they announced the commencement of service from Dublin and London. On this route, British airways (BA) and Aer Lingus were already operating. This route is ... Show more content on Helpwriting.net ... Aer Lingus and BA's least expensive, unrestricted round–trip fares on the route were priced at IВЈ208. Discount fares as low as IВЈ99 were available, though they had to be booked one month in advance. Nevertheless, Ryanair needs to evaluate its operating expenses and check whether such a drastic drop in market prices can be sustained by it. British Airways – Defending market share British Airways, being the market leader in the given market scenario can take the following steps to protect its market share 1. Reduce prices to compete with Ryanair As can be understood from the analysis given below, if British Airways can cut it's staffing by 25%* and increase it's utilization to 90% from 60%, it shall be able to reduce the prices significantly to IВЈ104, still IВЈ6 more than Ryanair. As British Airways is a renowned market leader, people would be inclined to travel by British Airways by paying the IВЈ6 extra than by a relatively unknown carrier Ryanair. Also, such a reduction in tariff on all of BA's routes might not be necessary. It can very well position separate flights/routes for this rate so as to offset any reduction in utilization through profits in other routes. | British Airways| BA Optimized| BA with 90% capacity utilization and reduced staffing| Ryanair| | IВЈ| Percent of Revenue| IВЈ| IВЈ| IВЈ| Total Revenue| 3,06,36,00,000 | | 2,87,78,93,400 | ... Get more on HelpWriting.net ...
  • 15. Dogfight over Europe: Ryanair (a) For the exclusive use of J. SICINSKI Harvard Business School9–700–115 Rev. November 21, 2007 Dogfight over Europe: Ryanair (A) In April, 1986, the upstart Irish airline Ryanair announced that it would soon commence service between Dublin and London. For nearly a year, the new airline had operated a 14–seat turboprop between Waterford, in the southeast of Ireland, and Gatwick Airport on the outskirts of London. The founders of Ryanair, brothers Cathal and Declan Ryan, felt that service on that first route had developed well. They knew, however, that the Dublin –London route would pose new challenges. For the first time, they would face Aer Lingus, British Airways, and other established competitors on a major route. European Aviation... Show more content on Helpwriting.net ... Intra–country service was also regulated strictly. To varying degrees, domestic fares were set by government authorities, and entry by new airlines was discouraged. The collapse of European empires and the advent of jets capable of crossing the Atlantic economically led virtually all European flag carriers to refocus their international efforts on routes across the North Atlantic in the late 1950s. Heavy and growing demand for transportation to and from North America made such routes highly profitable, at least initially. Europe's system of regulation soon came under pressure. A late–1950s attempt to unify the flag carriers of France, West Germany, Belgium, and Italy collapsed under the weight of disparate national interests. By 1960, the Economist magazine bemoaned the state of the heavily regulated, fragmented airline industry. "The basic trouble," it concluded, "remains that the world has too many airlines, most of them inefficient, undercapitalised and unprofitable."4Though the IATA introduced some forms of restricted, discount fares in the 1950s, consumers grew dissatisfied with high prices. European regulations applied largely to regularly scheduled service between destinations. To bypass these regulations and to tap pent–up demand for leisure travel, charter airlines appeared and grew rapidly during the 1960s. These start–ups, funded in part by shipping companies, offered holiday makers cheap fares on ... Get more on HelpWriting.net ...
  • 16. Ryanair Ryanair – The low fares airline: Whither now? Main Problems Ryanair's growth rate is affected by macroeconomic factors such as the recession, as seen in 2010 when Ryanair saw a 200% increase in profit and traffic growth, as the low fares became attractive for those suffering from the current climate. Uncertainty still remains regarding the economic climate; problems would arise if it continued, as passengers would reduce spending restricting the company's passenger volume growth. If the economic climate was to grow, business and leisure passengers may choose to pay more and travel with a full service airline, this could consequently result in demand for low–cost flights to drop. One of the greatest concerns is fuel prices the ... Show more content on Helpwriting.net ... If it were to be successful Ryanair would have to change their strategy, as it would not be able to keep low costs, as passenger on long haul flights would want the additional add–ons at no extra price. This would result in increased price and pose a challenge for Ryanair to maintain cost leadership. Possible Solutions Ryanair should expand in the EU, by increasing flight frequency and flights expansion especially in Eastern Europe. One way they can do this is to purchase WizzAir, an airline that already has major bases and routes in Eastern Europe. This would gain an advantage over competitors such as easy jet who currently have no bases there, thereby maintaining cost leadership. Strategic alliances should be put in place so Ryanair can achieve an extensive geographic network, with bases placed strategically around Europe airports. By consolidating with Norwegian airlines and creating a strategic partnership, with a percentage in each other's shares would allow for greater scope and assurance from the unpredictable economic conditions. Swift market responses need to be made by Ryanair, such as capitalising on the failure of other European airline by opening new routes on their existing failed ones, this will achieve greater economics of scale and thus costs fall. Ryanair should continue to look at the many airlines that have a limited geographic area
  • 17. ... Get more on HelpWriting.net ...
  • 18. Taxation on Inflation in Ireland Taxation on inflation: there has been a rise recently in Ireland. The this accounted for families and prosperity. Yet they had to allow for a bigger wage increase. This way they can compensation for the increase of inflation. Irelands working week consist of a Monday to Friday. The maximum hours that can be worked are 48 hours and the legal working age starts at 16. Ireland has no control over the maximum and minimum price of any goods. However, the retailer and service provides apply to the industry regulator for approval for any price increase. financial services for the suppliers don't have to apply for approvals for changes in price, they must however inform the central bank of Ireland of any such changes. Ireland has been a member of the European union since 1973. Their trade policy is the same as that of other members of e.u. since they are part of a membership of the e.u. they have nontariff barriers on agriculture and manufacturing. Subsidies quotas import bans and restrictions for some services and goods, they have some market access restrictions in some service sectors. Also, nontransparent and restriction standards and regulations. The welfare and safety wealth at work general application regulation 2007 contains an widespread list of unambiguous workroom health plus safety instructions that each company must bear by. Irelands company has been through a revolution the last couple of years. They have evolved from "an agricultural focused economy to a recent ... Get more on HelpWriting.net ...
  • 19. Looking Into Career Development : Alan Joyce And Howard... Looking into career development, skills and values are a big impact because this can show how well you are heading. The business leaders that I will be looking into are Alan Joyce (Chief Executive Officer and Managing Director of Qantas) since November 2008 and Howard Schultz (Chief Executive Officer for Starbucks) since 1982. This essay will look into the two business leaders listed above, Alan Joyce and Howard Schultz, reviewing their careers till present. Examining the skills, values and capabilities I admire and a career development model that fits their career path. After, I'll be looking into my own career aspiration and what my strengths, skills, values and capabilities and which career development model fits my path. Alan Joyce is ... Show more content on Helpwriting.net ... He graduated with a honours in a Bachelor of Science in Applied Science (Physics and Maths) and a Master of Science in Management Science (Qantas, 2015, para. 9). Joyce was once diagnosed with prostate cancer in 2011 but was successfully treated. Howard Schultz is an American business leader who was once a former owner of a basketball company called Seattle SuperSonics and a member of a financial service at Square, Inc. He was ranked 354th richest person in the United States. He started his coffee adventure in 1981 where he travelled from New York to Seattle to look at coffee beans and what made him love the aroma and taste of it and the owners of Starbucks carefully roasting and choosing their coffee beans made him interested in working with the team, Starbucks (MyPrimeTime, 2001, para. 1). However, he resigned his position as a CEO at Starbucks in 2000 then returned back to the company in 2008 as a CEO (Biography, 2015, para. 1). Howard Schultz stated that he always wanted to do something to make a difference for the society therefore he started to do that. The values that I admire from Schultz was his belief in employee satisfaction driving them to create customer's satisfied and pleasant about their coffee, having his employees satisfied by having communication and training in the workplace, making high quality beverages quickly and make it how the customer would like it to be e.g. with one sugar, skim milk or caramel sauce ... Get more on HelpWriting.net ...
  • 20. Swot Analysis Of Ryanair Abstract The aim of this report is to explain and analyse the role of Human Resource Management in the airline company Ryanair. To provide a background information of organisational structure, their vision, mission and strategic goals. Outline the key challenges and opportunities faced by their Human Resource Management. Table of Contents HR Strategy in Ryanair6 Ryanair HR Planning7 Managerial Judgement7 Delphi Technique8 HR Audit8 Global Macro Environment (PEST)9 Political/Legal9 Economic9 Technological9 Socio– Cultural9 The Competitive Environment10 (Porter's 5 Competitive Forces)10 The threat of new entrants10 The bargaining power of suppliers10 The bargaining power of buyers11 The threat of substitute services11 ... Show more content on Helpwriting.net ... This was the beginning of a first fare war in Europe and the beginning of Ryanair's growth (Ryanair, 2000). Ryanair adopted their business structure and strategy from Southwest Airlines, the largest low–cost airlines in the World. Michael O'Leary, at the time just a tax advisor for Ryanair, was sent to United States to learn and study the business model of Southwest Airlines.
  • 21. He was hired as a CEO in 1994. Company continued to develop low–cost model and gained their success (Creaton, 2014). The company had their financial crisis during the years but managed to stay alive and fought their way to the top. Today Ryanair operates more than 1800 daily flights connecting over 200 destinations in 33 European countries. They have 87 bases across Europe and North Africa (Ryanair, 2000). Ryanair is the cheapest airline company in Europe to date. The average flight prices from Dublin to UK starts from 9.99 euro and around 25 euro to destinations like Amsterdam or Copenhagen (Conghaile & Breathnach, 2017). Ryanair's Mission According to (Ryanair, 2017) the company's mission and strategic goal is to gain a competitive advantage over rival companies and firmly establish itself as a Europe's biggest passenger airline company, by continued improvements and offering of its low fares service. Ryanair's strategy is based on how they differentiate themselves as a lowest cost airline company by implementing cost ... Get more on HelpWriting.net ...
  • 22. Economic Efficiency Recent measures taken by the firm to achieve efficiency. (Distinguish carefully as between different economic notions of efficiency in your answer). Glanbia plc is an international dairy and nutritional ingredients group headquartered in Ireland. The company has 4,500 employees in seven countries and sales offices in a further five. International operations include food ingredients and nutritionals while Irish operations incorporate consumer foods and agribusiness and property. The group has three strategic joint ventures which are based in the UK, USA and Nigeria. The company has the early 2000's expanded its international based projects and acquired new sectors of the world market by mergers and acquisitions. Due to the economic ... Show more content on Helpwriting.net ... Arla foods ingredients has given itself the task os establish local production before 2013 in the united states. A good sign for glanbia for the near future is that Arla foods aren't looking to make a major move into the American market but merely get a foothold in the market for future expansion. For now the company feels it's European market can be expaned more in countries like France Norway and Germany. |No.1 |No.3 | |Denmark |Germany | |Sweden |Poland | |Finland | | |Holland | | [pic] Kerry group is a world leader in food ingredients and flavours serving the food and beverage industry and a leading supplier of added value brands and customer branded foods to Irish and UK markets. The group has organically and through a series of strategic acquisitions in its relatively short
  • 23. ... Get more on HelpWriting.net ...
  • 24. Easyjet Research Paper Cheap Flights from London Gatwick to Munich Airlines that Fy from London Gatwick to Munich Easyjet is the only airline that currently offers direct flights from London Gatwick Airport (LGW) to Munich Airport (MUC). However, you can also fly with Vueling, Aer Lingus, or Norwegian Air International if you don't mind stopping in Barcelona (BCN), Dublin (DUB), or Oslo (OSL). Having trouble deciding on flights? Try setting up a price alert with Skyscanner's search tools so you never miss a great travel deal! Departing from London Gatwick London Gatwick Airport is located about 50km from London's city center, and can be reached easily by taxi or public transit. Long–term parking is available at the airport for approximately $40 CAD for the first day, and $32 for each day afterward. If you park at one of the airport's available car parks, there is a free shuttle bus service every 15 minutes that can take you to either terminal in 5 minutes.... Show more content on Helpwriting.net ... There is free wi–fi for up to 90 minutes (with additional time for a fee), as well as charging stations for your devices and free magazines and newspapers available in the departures area to keep you entertained. Arriving in Munich After landing at the airport, follow the overhead signs to collect your baggage and make your way through security. Despite being about 45 minutes away from the city center, there are a few easy ways to get to your hotel from Munich Airport: Lufthansa Airport Bus: Departs from outside of both airport terminal between 6am and 10pm, and heads to the city centre, stopping at the main train station along the way (40 minutes, $15.25) Train: There is a train station within walking distance of both terminals– just follow the signs that say ... Get more on HelpWriting.net ...
  • 25. Ryanair's Pricing Strategy Of Ryan Air Ryanair positioned itself as a low cost airline, which delivered services equivalent to that of British Airways and Aer Lingus. In terms of service quality, they positioned themselves in the same category as the aforementioned airlines, but at the same time, charging a relatively low price when compared to British Airways and Aer Lingus. Their strategy was to deliver first rate/ good quality customer services and offer meals and amenities comparable to that of British Airways and Aer Lingus. The second strategy was to charge a single fare ticket of IВЈ98 on it Dublin–London service, which was very low when compared to British Airways and Aer Lingus's rate of IВЈ208 or IВЈ99 if booked in advance. Ryanair used the penetration pricing strategy, ... Show more content on Helpwriting.net ... This reaction of Ryanair's competitors will be discussed more lately in this paper. Given that Ryanair is a new airline, chances of survival will be slim if they engage in a price war. If all is in favor of Ryanair, they will be able to acquire a sizeable portion of its competitor's market share for that route, as well as acquire new customers from other transport options such as trains and ferries, by offering a faster commute. To compare the price with competitors and consider this opportunity for Ryanair's service between Dublin and London, Ryanair should estimate the cost and the possibility of seats sold by using British Airways revenue and cost in exhibit 4 of the case study. From the exhibit 4, Ryanair can calculate the possibility of seats sold by finding the ratio of customers who do not book the seat of British Airways in advance and compare to its own seats available annually. The British Airways average revenue per passenger equals to IВЈ166.5. Also, British Airways is selling its ticket at the price of IВЈ208, and IВЈ99 for early advance booking. Therefore, only around 38.07% of British Airways' customers bought the seat in advance, while the rest, 61.93%, paid for full amount of IВЈ208. That means the round–trip passengers around 309,633 persons out of a half million paid at the price of IВЈ208. On the other hand, Ryanair would run only four ... Get more on HelpWriting.net ...
  • 26. Strategic Analysis on Ryanair TABLE OF CONTENTS Introduction| 2| Analysis| 3–7| Problems| 7| Solutions| 8| Conclusion| 9| References| 10| Word Count: 2061 Introduction Ryanair was founded in 1985 by the Ryan family, which was headed by Tony Ryan. It was the first budget airline in Europe, modeled after the successful US carrier, Southwest Airlines. It was founded to provide scheduled passenger airline services between Ireland and the UK, as an alternative to then state monopoly carrier, Aer Lingus. At the beginning, Ryanair was a full service conventional airline, with two classes of seating, leasing three different types of aircraft. Despite growth in passenger volumes, by the end of 1990, the company faced a great conflict, disposing of five chief... Show more content on Helpwriting.net ... In a way, the competitive advantage of Ryanair would be the low fare, as there is not much differentiation on airline services. As long as the passengers reach the destination safely, there would be no problem; therefore price is the main factor. Central Problems After evaluating the analysis, it can be concluded that there are several central problems that exists within the strategy of Ryanair, which are poor customer and media relations, poor employee relations and the rising of fuel prices. Due to the low fare, Ryanair would have to cut cost in many areas of the service without impacting the core competence, which is transporting people safely to their destinations. However, due to the cutting cost, Ryanair neglected the quality of other services. According to a poll of 4000 travelers around the world by TripAdvisor in October 2006, Ryanair was voted the world's least favorite airline. Ryanair scored badly in the category that included comfortable seats, security, never lose my luggage, best amenities'. Ryanair only scored well on the 'best fares'. Moreover, the customer service was compromised as unfriendly staff was cited as the worst part of the Ryanair experience. In one incident, it charged a customer with cerebral palsy ВЈ18 to use a wheelchair. Ryanair then charged 50–cent wheelchair levy on every passenger ticket due to the protests. Poor treatment of customers whose ... Get more on HelpWriting.net ...
  • 27. Essay On Irish Potato Famine Learning about the Irish potato famine of the 1800's that drove millions to America may seem like a boring topic for most people to learn. Sure, it impacted the job market, but what does it matter to most? Well, if it wasn't for the potato famine, I would've been born in Ireland. My personal identity would not be complete without my background as an Irish. My great great great grandfather came over from Ireland during the potato famine of the 1800's. Later on, he married another Irish immigrant–a woman younger than him. Due to the fact that my family's ancestors came over from Ireland, I identify as Irish. This identity has impacted my life. As a child, my parents sang me songs that I assumed every kid was hearing. It wasn't until much later that I realized that the ... Show more content on Helpwriting.net ... Excitement was with me as we boarded Aer Lingus and set off for Ireland. It was an indescribable feeling when we landed at the Shannon Airport and stepped outside. We were in the land of my ancestors. Driving down the narrow roads and passing so many green fields and sheep, I thought about what it was like for my ancestors to live here during such a bad time. The entire time we were there, it was cold, and it rained a bit. If I had been just another tourist on the Cliffs of Moher, the experience would've been completely different. My irish identity shaped my experience in Ireland. From birth, my heritage has been ingrained in me, reiterated throughout my childhood. It's a necessity for me to know where I come from, and being raised the way I was definitely helped that. Being Irish also gives me a group of people who have also come from Ireland. We can relate to each other in that we have been to Ireland to visit, but we weren't born there. My Irish identity has given me a heritage to claim, and with that, shapes my experiences as a ... Get more on HelpWriting.net ...
  • 28. Case Study Summary: Ryanair's Launch Strategy? Summary: Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline services between Ireland and the UK, as an alternative to the then state monopoly carrier, Aer Lingus. It started out a full service conventional airline, with two classes of seating and leasing three different types of aircraft. However, despite growth in the passenger volumes financial problems were of a growing concern. A. 1. What is your assessment of Ryanair's launch strategy? Generally speaking, the launch strategy of Ryanair was not the best one for that moment in time. They began operations between Dublin and London, in a very saturated market, which was already served by two competing and very experienced companies owned by the governments: ... Show more content on Helpwriting.net ... Since Ryanair is looming their highest return–on–capital route, it was expected that, not to lose the passengers volumes, both airlines will start to offer lower fares and greater frequency of flights. It is not likely that BA and AL will try to match the exact prices of Ryanair because they have other factors that would influence their customer base to remain loyal. Also, the majority of their costs are fixed, making it difficult for them to quickly reduce their operating expenses without significant financial losses. Not only will BA and AL have to figure out ways to lower their costs, they will also need to reassess the limitations they have on their tickets. Ryanair is offering tickets without any restrictions, so even if BA and AL came close to their price, the customer may still choose Ryanair if the others do not make policy changes. They offer a variety of classes of service, from first to economy, while Ryanair has less complicated offer– one class on one type of plane. BA and AL were assuming that the deregulation of the airline industry, particularly in the United Kingdom, will allow them to expand their routes and cover more of their significant overhead. Some expected ... Get more on HelpWriting.net ...
  • 29. A Report On The Executive Of The Company As Business Analyst Introduction: I have been asked to present a report to the CEO of the company as business Analyst in a multinational company and critical analyse the complexities of different types of organisations, their structures and the interrelationship between their organisational functions. In this report we would investigate and discuss its two competitor organisations see how they differ from this multinational organisation. I have for this report chosen 1.British Airways– 2.Thomas cook 3.Aer Lingus 1.Overview of different types of organisations, their types and the growth in international business environment Organisations are groups of individuals functioning towards the similar goals or having the same rationale. It is a social entity of people that is controlled and managed to meet a need or to follow collective goals. All organizations have an administration structure that determines affairs between the different actions, tasks and the members. There is also a subdivision of responsibility to carry out these different tasks. Organizations are subject the surrounding environment and are directly or indirectly affected by the environment. There are three different types of organisation 1. Profit organisations 2. Non profit organisations 3. Non government organisations Profit Organisation: A business or an organization whose main objective is making profits, as opposed to a non profit organization which focuses on an aim such as helping the society and is concerned with ... Get more on HelpWriting.net ...
  • 30. Swot Analysis Ryanair Strengths – Ryanair is one of the largest European airline company and it keeps growing by launching new routes and opening new bases. Ryanair was the first company in reducing ticket costs and keep them low at all times. Low fares area key strength of the company and very big advantage over other airlines. Another strength of the company has a strong brand which means it's widely recognised. Ryanair established in the European market share. The current market cap in millions is ВЈ17,729.86 according to London Stock Exchange. (Appendix 1) The last strength of Ryanair listed is the ability of landing in over 200 destinations on 33 countries. Weakness–Internally, there has been serious strategic issues with current employment model applied by Ryanair. Statistics shown that the average length of service for pilots is about 4.6 years and average of 386 pilots leave Ryanair each year since 2012. This is caused by precarious nature of their employment relationship including disrespect towards pilots and cabin crew, failure of giving scheduled time off and working over contracted hours. In this case precarious work condition means that many Ryanair pilots don't have fixed permanent contract. Pilots are grouped into Irish agency companies which have between 5 and 8 pilot directors, those agency companies then subcontract into a UK labour provider of pilots and then that UK provider provides the pilot labour into Ryanair. This causing a big distance between Ryanair and the ... Get more on HelpWriting.net ...
  • 31. Case Study Of Jetblue JetBlue Airways Corporation, JetBlue for short, is one of the biggest air travel company in the United States. JetBlue is the 6 largest airline in America. The company is headquartered in the Long Island City neighborhood of the New York City, with its main base at John F. Kennedy International Airport. It also maintains corporate offices in Cottonwood Heights, Utah, and Orlando, Florida. During it operation, JetBlue has faced up with many tragedies and problems. Typically is the problematic flight happened in Valentine day February 14, 2007. Most people thought that misfortune even puts an end for the airline. Nonetheless, JetBlue not only survives, but it growing, earns a profit and become the favorite airline of many people. So we wonder... Show more content on Helpwriting.net ... 2.Moving on to the second question '' Describe in detail all the facets of JetBlue's product. What is being exchanged in a JetBlue transaction? ''. People donate their time, money, effort to book a flight successfully, they also exchange the opportunity to use service of some other airline to experience all the facets JetBlue's market offering. And JetBlue has done a great job to not let their precious customer down. In some aspect, JetBlue's service is considered ingenious cause they have made effort to distinguish their service in a better way to their competition. They give people a unique and pleasant service in exchange for their cash. Now let point out in detail all the facets of JetBlue's product that make they become a better option for the traveler. First is the features and services on the flights. JetBlue gives the customer three more inches of legroom than the average airline seat. If that even cannot meet the need of some people they can pay a litter extra about ten dollars for having more space and a flatter recline position. Moreover, there are comfortable seats with leather lining, give the customer the feeling that they are experiencing a luxury service.Furthermore, in addition to snacks and free soft drinks, flyer is able to enjoy some special food product offered by JetBlue as Terra Blues chips, immaculate Baking's Chocobillys cookies, and Dukin's Donuts coffee. We can sense the deliciousness from the name. More important, the customer does not feel ... Get more on HelpWriting.net ...
  • 32. Ryanair And Ryanair Case Study How did the deregulation of air transportation in Europe foster entrepreneurial behavior and innovation in the European airline industry over the last twenty years? Case studies: SAS Airline & Ryanair Master Thesis in Entrepreneurship and Dynamic Business Contexts Spring 2007 Supervisor: HГҐkan Bohman Entrepreneurship Master Program Authors: Gilles Helterlin and Nuno Ramalho Acknowledgements We would like to express our gratitude to all who have contributed to the realization of this Master Thesis. A warm thank to our supervisor, HГҐkan Bohman from USBE (UmeГҐ School of Business), for his guidance, his precious help and his advises during the last months. To Mr. Lundvall, from LFV (Luftfartsverket), Mr. Valinger from... Show more content on Helpwriting.net ... Our study shows that EU deregulation altered the five competitive forces in European airline industry and in turn this fostered entrepreneurship and innovation, as a reaction of firms to adapt to the change in their context. The reaction of Ryanair and SAS through entrepreneurial and innovative behaviour was different due to the differences in their business model. We argue that the removal of barriers to new entrants and the increased rivalry between firms were the main forces that fostered entrepreneurship and innovation. We predict that if further EU deregulation comes (as it is the trend) this will generate more opportunities to entrepreneurship and innovation like it generated in the past. TABLE OF CONTENTS 1 INTRODUCTION ........................................................................................................................................................ 1 1.1 BACKGROUND OF THE STUDY.................................................................................................................................. 1 1.2 RESEARCH PROBLEM............................................................................................................................................... 3 1.3 RESEARCH OBJECTIVES ........................................................................................................................................... 4 1.4 DEMARCATIONS AND LIMITATIONS OF THE
  • 33. ... Get more on HelpWriting.net ...
  • 34. What Is Ryanair Competitive Advantage Introduction: Ryanair is the most successful and profitable airline in the world. It achieved this by adopting various practices that gives it a competitive advantage over rivals. Ryanair aims to offer air travel services at low rates and this attracted many passengers while at the same time it maintains a continuous focus on cost reduction, operating efficiencies and continuous improvements. In this report, we will start presenting the history of Ryanair airline. After this, we will discuss the competitive advantage of Ryanair, how they gain it and build it. And we will answer whether Ryanair was able to sustain its competitive advantage or not and why. Also, we will identify the competitive strategy that Ryanair pursued and we will list the... Show more content on Helpwriting.net ... What allow Ryanair to gain competitive advantage its ability to provide air travel services at low rate which allowed them to have a profit higher than the industry average. What building blocks of competitive advantage are there in the case? Although easyJet show up and competed with Ryanair for the low cost market and some of the same routes as Ryanair, Rynaie was able to remain its strong position in the market. Ryanair had distinctive operational models. The most important distinctive feature that distinguishes Ryanair from its main competitor easyJet and other competitors is that the fares are the lowest in the market. In 2002 the average fares of Ryanair were 30% cheaper than easyJet. In addition to all this, Rynair showed better punctuality record in taking off and landing on time than its competitor easyJet. Ryanair was making a good profit from flying to secondary airports which gave them a cost advantage because they avoid huge gate and landing charges and their flights in the less congested airports allow them to improve the turnaround time and the arrival and take off ... Get more on HelpWriting.net ...
  • 35. Relationship Of Etihad Airways Airport and airline relationship of Etihad Airways Etihad Airways is committed to the growth strategy of cooperation to get the scale needed to compete in the global air transport market. Beyond organic developments, the airline has a strong base of code–share partners, offers access to hundreds of destinations that are not served by its own aircraft. In 2013, Etihad Airways has signed a new code–sharing agreements with seven airlines – South African Airways, Kenya Airways, Air Canada, Korean Air, Air Serbia, Belavia and airBaltic. Code–sharing refers to a practice where a flight operated by one airline is jointly marketed as a flight for one or more other airlines. This addition takes the number of code–sharing partnership to 47 by the end of this year. Among the... Show more content on Helpwriting.net ... This represents an increase of 30 percent over 2012, and 21 percent of total revenue this year for Etihad Airways, which was reciprocated by donating passengers and goods to the company aviation partners. In the case of equity partners, the benefits are even greater, significantly reducing unit costs and operating expenses through activities including the sharing of resources and joint procurement. In 2013, Etihad Airways operated a number of services using a fleet of aircraft from Jet Airways, Virgin Australia and Air Seychelles will also provide a set of partners including Air Seychelles and Air Seychelles to meet short–term needs. Etihad Airways airberlin surplus hired 50 pilots and shared new office facilities in Germany with Air Berlin, provides training for pilots and cabin crews from several partner airlines and participate in joint sales and marketing activities with several partners worldwide. Etihad Airways also extend the benefits of its equity relationship by connecting companies to cooperate with one another, and also to integrate the company's partner in Etihad Guest loyalty ... Get more on HelpWriting.net ...
  • 36. Jetblue And Jetblue 's Success As of 2016, JetBlue has turned itself into an airline that is now viewed as strong competition amongst the largest US national carriers that have been around for multiple decades. In 2015, JetBlue had arguably its best year in the company's existence and more growth is expected. Demonstrating how their differentiated business model can create strong results, JetBlue had revenues of over $6.4 billion, a record annual net income of $677 million, seven consecutive years of profitability, a year–over–year net income that more than doubled, a strengthened balance sheet, growth in return on invested capital of more than seven percentage points between 2014–15, expanded operating and pre–tax margins that were more than any other major US airline, and a stock price that increased nearly 43% and outperformed the S&P 500 as well as the Airline Index. JetBlue's success during 2015 didn't stop there, as they were named one of the Top 25 Places to Work in Forbes annual survey and received an 11th consecutive J.D. Power award. This in large part contributed to their employees earning record profit sharing of about $150 million. JetBlue also rolled out a new feature in 2015 coined "Fare Options". This service provides customers the ability to select one of three fares based on what they value most. This includes things such as checked bags, TrueBlue bonus points, or flexibility to adjust travel plans. While competitors are still using the static fee structure, JetBlue's innovative approach ... Get more on HelpWriting.net ...
  • 37. Cost Leadership Strategy Of Ryanir Since the very beginning of Ryanair's existence. the atmosphere was tense between British Airways Aer Lingus and Ryanair. As Ryanair grew and grew the competitors got less and less money in turnovers. After twenty years on the "field" in 2006,Ryanair offered Aer Lingus an all cash offer which they did not take. The Employee Shared Ownership Trust voted to oppose the takeover of Ryanair Holdings with 97%. Days after this takeover offer, Ryanair increased its stake from 19% to 25% which shares they bought from a US hedge fund. In 2008 they bought more shares and increased it up to 29,82%. In the beginning of 2009, Ryanair had an offer for Aer Lingus, but again they did not accept it. After all in 2015 Ryanair's board voted to accept the International ... Show more content on Helpwriting.net ... To achieve it, companies must: improve process efficiencies;g ain unique access to a source of lower cost materials; outsource appropriate functions and avoid certain costs altogether. The airline industry has long been striking profitable deals with airports to keep certain routes open. Ryanair's business strategy is made up of four guiding principles: employ a single type of plane, constantly review overheads, turn aircrafts around quickly and abandon point's schemes. In 2002 Ryanair ordered 100 Boeing 737–800 jets with options to buy a further 50 in a transaction that was worth a price of $9.1bn. Ryanair secured a significant discount. With newer, more fuel efficient planes than many of its rivals, Ryanair was able to hold down costs, charge lower fares and pack jets with passengers who might not spend a huge amount on tickets but spend profitable sums on food, hotel reservations and check–in charges. Ryanair has introduced a number of measures which have helped the business make a profit of €503m in the past financial year. These include being the first airline to implement baggage charges, working to eliminate the need for check in desks and cutting the weight of its aircrafts; examining the possibility of larger aircraft doors, to speed up ... Get more on HelpWriting.net ...
  • 38. Ryan Air an E-Commerce Organization Table of Contents {text:bookmark–start} Definning e–commerce {text:bookmark–end} There are nearly as many definitions of e–commerce as there are contributions to the literature. (Damanpour, 2001) defines e–commerce as "any net business activity that transforms internal and external relationships to create value and exploit market opportunities driven by new rules of connected economy". E–commerce is a "disruptive" innovation that is radically changing the way organizations do business (Macgregor and Vrazalic, 2007). In other words a organization who do majority of their sales via internet, electronic procurement and electronic payment. As in the given case of RYANAIR AIRLINES. {text:bookmark –start} Ryanair Airlines in brief... Show more content on Helpwriting.net ... In Transactional Leadership, "Managers take an initiative in offering some form of need satisfaction in return for something value by the employees". On the other hand Transformational Leadership is the "Process of engaging the commitments of employees in context of the shared value and shared vision". Thus from the above statements we can analyze that Ryanair has a characteristic of Transformational Leadership as they are courageous and believe in people. They are visionaries and can cope with complexity and ambiguity. There are four types of Leadership styles and they are(1) Autocratic leadership where a " Leader takes the decision and announces them, expecting subordinates to carry them without question". (2) The Democratic where a " Leader would characteristically lay by the problem before his or her subordinate and invite discussion".(3) The Consultative where a " Leader confers with the group members before taking decision and, in fact, considers their advice and their feelings when framing decisions". (4) The Persuasive where a "Leader at this point on the scale also takes all the decision for the group without discussion or consultation but believes that people will be better motivated if they are persuaded that the decision are good ones". From the above four types of Leadership we can analyze that Ryanair has been performing the Persuasive Leadership because it's the management decision to be a lowest fare airline with some innovative ideas in cost cutting ... Get more on HelpWriting.net ...
  • 39. Ansoff Matrix Model Of Ryanair Executive Summary Ryanair is an Irish airlines company set up by the Ryan family in 1985 with a share capital of just ВЈ1 and only 25 members of staff. Its first route was launched in July 1985 from Waterford in the southeast of Ireland to London Gatwick. The expansion of the company started in 1986, when the company obtained the permission to compete with the duopoly British Airways and Aer Lingus. For many years up to 1990, the financial performance of the company which was negative, dramatically changed with the appointing of the new Chief Executive Officer Michael O'Leary. The new management vision was to restructure the company based on the Southwest Airlines prototype business model with a culture of low–cost / low fare. Thanks to the European Union deregulation air transport in ..., the company opened new routes and bases, increase its market share and became the first airline in Europe to carry over 100 Million international customers in a calendar year (Ryanair,2016) due to its low cost competitive advantage. The purpose of this report is to comment at the first part how Ryanair achieve its competitive advantage through the RBV analysis (Barney,1991), the second part will assess its approach to the diversification through the Ansoff matrix , the third part will discuss the company's organisational culture using the cultural web modeland last part its internationalization strategy. 1.Introduction Through the Ryanair's case study (Eleanor O'Higgins), the aim of this ... Get more on HelpWriting.net ...
  • 40. Case Study: Internal analysis of Ryanair Case Study in: Johnson, G. et al., 2005. Exploring Corporate Strategy. 7th ed. Essex: Pearson Education Ltd. 1. Internal audit of tangible, financial and intangible resources Tangible Resources 1. Human Resources * Ryanair currently employs 2000 people (2003) from 25 nations. * The pay is performance related and among the highest in the airline industry (Annual Report 2004, p. 5). Travel concessions and participation in the share option program is granted to all employees. In 2003 over 30% (639 in total) of employees took part in the stock option program – the average pay per employee was about 53.000 (Annual Report 2004, p. 21). * CEO Michael O'Leary has significantly shaped Ryanair. 2. Physical resources * Ryanair operates 72 ... Show more content on Helpwriting.net ... 5), keeping people who already know the company which in turn reduces costs (introduction...) and enhances motivation. Employees have also the interest to bring the company forward because over 30% already are shareholders. Sustainable competitive advantage according to Lynch (2003) of Ryanair is: the low cost basis (key success factor), offering of the cheapest ticket prices (in order to target price sensitive customers) and the abilities of the management and the CEO (leadership) of Ryanair. In addition to that first mover experience (experience from competing against BA and Aer Lingus at the beginning) may also have benefited the company. 3 Ryanair's dynamic capabilities
  • 41. Dynamic capabilities provide a constant flow of opportunities (Lynch, 2003), from which Ryanair could take advantage in order to sustain the competitive advantage: * Ryanair immediately responds to opportunities and threats in order to cut costs and sustain the low cost basis (e.g. abandonment of ice cubes...) or to increase profits (e.g. ancillary services...) * Constantly shaping the internet as the main communication device to its customer (marketing and sales, booking...). * Ryanair wants to provide the lowest fares. Therefore the company must be very flexible and always at least react (or ... Get more on HelpWriting.net ...
  • 42. Ryanair Case Ryanair Case Analysis 1.What is your assessment of Ryanair's launch strategy? Was it a good strategy? In your answer consider potential market demand, pricing and Ryanair's likely cost structure. After having grown up in the airline industry, the Ryan brothers proved they were able to operate a scheduledairline successfully with their 14 seat flights between southeast Ireland and a secondary London airport. Their strategy was to expand to the Dublin–London route, a known lucrative route for British Airways and Aer Lingus. Ryanair planned to have unrestricted fares priced at IВЈ98, while providing first–rate customer service. Ryanair chose to enter the market at a time when the consumer base needed a low cost alternative and the ... Show more content on Helpwriting.net ... The majority of their costs are fixed, making it difficult for them to quickly reduce their operating expenses. Not only will BA and AL have to figure out ways to lower their costs, they will also need to reassess the restrictions they have on their tickets. Ryanair is offering tickets without any restrictions, so even if BA and AL came close to their price, the customer may still opt for Ryanair if the others do not make policy changes. In addition, BA and AL are likely to launch advertisement campaigns to try and convince the consumer market that their level of service and experience in the industry is worth paying a higher price. BA has retail shops that offer in–person service and are known among business travelers for their in–flight amenities. Additionally they offer a variety of classes of service, from first to economy, while Ryanair has one class on one type of plane. BA and AL are assuming that the deregulation of the airline industry, particularly in the United Kingdom, will allow them to expand their routes and cover more of their significant overhead. British Airways has been continually increasing their revenue and profit from a low in 1981. BA carries more international passengers than any other airline and has an overall higher operating margin than in Europe alone. It would be safe to assume that BA will focus efforts on other markets and not feel too much pain from losing some business on this route. 3.How costly ... Get more on HelpWriting.net ...
  • 43. A Report On The Airline Business Industry Introduction In the airline business industry it is requirement to have outstanding leadership and culture to achieve a strong business operation and management. The two airlines discussed in this report are Ryan air being the main business of the report with Easyjet being the business for comparison and explanations in leadership styles and culture that are carried out and utilised. Both business offer the same services which are cheap fare flights. RyanAir and Easyjet: tickets are sold directly to customers Non luxury flights Singular type of air carriers to minimise staff training and maintenance costs offering a single class cabin so all passengers receive the same service Ryanair It is an Irish–owned airline that was established in 1985 by the Ryan family to compete with Aer Lingus and British Airways on the Ireland–U.K. routes. Ryanair offer a point a to point b service and is a low budget airlines and aims to turn flights around within 25 minutes and routes are consistently the shortest of all the Low Cost Carrier's. RyanAir has transformed itself from an industry minnow into one of Europe 's biggest airlines over two decades. However, its obsessive focus on the bottom line has dented its public image. Such as; making employees pay for their own work attire and training along with hidden fees for customers that require extra services. Easy jet Easyjet strongly follow the similar low–cost model like Ryan air and do not offer any luxuries and similarly ... Get more on HelpWriting.net ...
  • 44. Ryanair Instructor's Manual 368 © Pearson Education Limited 2005 CASE TEACHING NOTES Ryanair – The Low–Fares Airline Eleanor O'Higgins 1. Introduction Ryanair was the first budget airline in Europe, modelled after the successful US carrier, Southwest Airlines. The case offers students the opportunity to evaluate the strategy of Ryanair against the backdrop of the European airline industry and the burgeoning budget sector. Business students at all levels enjoy this case and relate to it, since air travel is an activity virtually everyone has experienced and we all have war stories to tell about the various airlines with which we have travelled. The Ryanair case has been used successfully with students from Ireland and other European ... Show more content on Helpwriting.net ... Armed with the industry analyses, students can do some preparation between Instructor's Manual 370 © Pearson Education Limited 2005 sessions, either individually, or in groups, to deal with an evaluation of Ryanair itself, the subject matter for the second session (approximately 2ВЅ hours). 5. Questions for discussion The crux of the case is to evaluate Ryanair's strategy, having analysed the competitive arena in which Ryanair operates and its own particular mix of resources and operations. This entails an assessment of the sustainability of Ryanair's strategy. The issues in the case can be broken down by addressing the following list of questions which follow a natural sequence that can generally be applied to the strategic evaluation of most companies. First class session: 1. Analyse the European airline industry, with implications for the budget sector, and especially Ryanair. Second class session: 2. Evaluate Ryanair's strengths and weaknesses.
  • 45. 3. Is Ryanair's strategy sustainable? 4. Would you recommend any changes to Ryanair's approach? 5. Evaluate the strategic leadership of Michael O'Leary. 6. Case analysis 6.1 Analysis of the European airline industry, emphasis on budget sector (Refer to Chapter 2 in Exploring Corporate Strategy.) The best way to approach this question is to go from the broadest unit of analysis to the narrowest: ... Get more on HelpWriting.net ...
  • 46. As part of marketing in business, strategy is a leading... As part of marketing in business, strategy is a leading light because it is a plan of action designed and followed by businesses to become successful. Three companies in the same industry can offer similar products in a completely different ways. Branding is everything and understanding what customers want determines a company's brand position. Airline companies are great examples of numerous companies offering the same product. Major differences in brand and quality management come when comparing three airline companies that offer the same product such as Spirit Airlines, Jet Blue and American Airlines. Although their product is the same, the processes to marketing their product are completely different. Spirit Airlines is an... Show more content on Helpwriting.net ... As of October 2013, JetBlue serves 84 destinations in 24 states, and 12 countries in the Caribbean, South America and Latin America. JetBlue is one of the largest airlines in the Northeast United States. In 2007, USA Today reported that JetBlue planed to enter into a partnership with Irish flagship carrier Aer Lingus. The alliance will facilitate easy transfers to both airlines' customers, but will not allow either airline to sell seats on the other airline, unlike traditional code share alliances, meaning customers must make individual reservations with both carriers, the newspaper said. With a goal of improving flight experience, JetBlue became the first airline to offer all passengers personalized in–flight entertainment. In 2000, flat–screen monitors were installed in every seatback which allows customers live access to over 20 DIRECTV channels at no additional cost. American Airlines serves four continents, trailing Delta Air Lines and United Airlines, which both serve six. This company has been in the industry for 69 years. It is one of many airlines that have played an important part in the history of air transportation in the United States. Starting as a mail company called "Aviation Airways", which carried bags of mail from Chicago to St Louis is how this company began to rise. In 1934 American airways became American Airlines, Inc. A few years later it ... Get more on HelpWriting.net ...