... Routes Operated by Aer Lingus: 14 SWOT Analysis: 23 Conclusions & Recommendations: 25 Bibliography: 26 Introduction: The aims and objectives of this marketing research investigation are to analyse how the airline is currently competing in this business area. There are a number of factors in which we can examine to determine this: 1. Find the main source market profiles? * To get this result I will be using Primary Source information by sending a questionnaire. 2. How is the company continually expanding? * Quantitative paragraph researches how Aer Lingus has progressed over the last 10 years and how the new focus today is for an ever expansion of its long haul flights. 3. What differs Aer Lingus to other airlines? * Qualitative we have a look at the service levels that make this airline unique. * Secondary Data shows who Aer Lingus is partnered with to connect Ireland with the rest of the world. * Strategy specifies why Aer Lingus cannot be a Ryanair. * Routes Operated by Aer Lingus is more central to the peripheral airports offered by Ryanair. * SWOT analysis goes into further detail on how this airline is distinctive from others. History: Aer Lingus was founded by the Irish Government in 1936 to provide air services between Ireland and the UK. Its name is derived from the Irish 'long' meaning 'ship' and is therefore translated as 'Air Fleet.' On 27 May 1936, Aer Lingus made its maiden voyage...
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...Company Profile •Aer Lingus is the national airline of Ireland. It is headquartered at Dublin Airport, Ireland. •The airline operates 43 aircraft and carries on average 10 million passengers per annum. •The airline's primary mission is to connect Ireland with the world and the world to Ireland by offering its customers the best product in the Irish airline market at a competitive price. The airline’s primary markets are Ireland, the United Kingdom, Europe and the United States. The Irish people typically undertake several overseas flights a year. This is partly driven by Ireland’s status as an island nation but also reflects the inherent propensity among the Irish to travel to visit overseas destinations. tgp2012 1 Marketing orientation Marketing orientation In 2001 after the 9/11 effect on the airline industry Aer Lingus introduces their first model of low fares to compete with other low fare In 2001 after the 9/11 effect on the airline industry Aer Lingus introduces their first model of low fares to compete with other low fare airlines. The airline was close to bankruptcy and they had to find new waysairlines.how to keep the company afloat. They carried out numerous to see The airline was close tosurveys within the industry to find new what was needed/wantedtheorder to prosper. They carried out numerous bankruptcy and they had to identify ways to see how to keep in company afloat. So after the initial surveys they lowered their fares and altered/removed/added new...
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...Methodology; 7 Findings; 8 KLM-Air France 8 Aer Lingus 9 Conclusion 10 Bibliography 11 Terms of Reference; This report has the objective of informing the reader on the approach of two companies to the ongoing financial crisis from 2009 and on. By the means of a comparative analysis, the reader will get a summarized overview of the measures of the two companies and will be able to reflect on them. There are two persons involved in this project; It will be written and submitted by Julian Koster. The final assessment will be done by the lecturer, Ms. Gina Noonan. Who is also responsible for correcting the drafts as well as grading the report in the end. The timeframe of this project is as follows; Date: | Event: | October 25, 2011 | First Draft of Executive Summary submission. | November 8, 2011 | First Draft of Methodology submission. | November 15, 2011 | First Draft of Comparative Analysis and Conclusion. | December 2, 2011 | Final Submission of Entire Project. | The structure of the report is made up of the following points; * Cover Page * Table of Contents * Terms of Reference * Methodology * Executive Summary * Comparative Analysis 1. KLM-Air France 2. Aer Lingus * Conclusion * Bibliography Executive Summary; This report was written to examine the way in which two companies handled the economic crisis of the late 2000s. The companies are; KLM – Air France and Aer Lingus. The research conducted focuses on the policies...
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...explain the extent to which Ryanair has been able to propose low fares to its passengers. 2- Apply the SWOT analysis to the Ryanair case and figure-out four possible strategic options using the TOWS matrix (one possible option in each case). 3- Should Ryanair continue to pursue the Aer Lingus bid? N.B : Before attending their case study sessions, students are asked to carefully read the case and to answer these 3 questions in teams. Please refer to the syllabus for the submission deadlines and guidelines. Master 1 - Business Management Track 2012- 2013 NO. Accoring to the value network analysis we have done in the previous questions, It’s not suggested for Ryanair to continue its bid after Air Lingus. In fact, the majorties is not optimistic about this consolidation. Shareholders of Aer Lingus formed a alliance and went against the bid. This alliance presented 47% of Aer Lingus shares, including 25.4% retained by the Irish government and 12.6% controlled by ESOT (Aer Lingus Employee Share Ownership Trust). And apprantly, employees of Air Lingus hold a negtive attitude towards its rival: 97% members of ESOT voted for rejection. The orgnization cultures of Ryanair and Air Lingus can not combine well. As the former Chief Executive Dermot Mannion stated, merger of these two companies would be like merging Manchester United and Liverpool football clubs. Besides, Ryanair is facing stress from the European Commission. Additionly, Ryanair and even the the whole...
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...* The aviation industry over Europe and Atlantic routes was a heavily regulated and subsidised by the respective governments. * Most were heavily ‘unionised’. * Recessions of 70’s and oil crisis lead to a period of losses in most operators and were borne by the state in one manner or other. * Gradual ‘privatisation’ of the operators was in progress and allowed introduction of some new players but the market was not ‘even keel’. * In the British – Ireland segment the larger player ‘BA’ and Irish carrier Aer Lingus were established. * BA had a large ‘ticket sales network’ and was effective in a large volume through such agents 83%. * Aer Lingus was operating in loss as far as Trans Atlantic segment was concerned but making a profit in non transportation businesses it had diversified in. * Competition also existed in form of ferry service which took nine hours but costed only £55 for a return trip as compared to I£208 for BA and Aer Lingus. Problem Identification * Evaluate the possibility of sustaining the operation of RyanAir with two routes. Observations. The problem of Ryanair is basically concerned with three major components:- * Defining the Value Proposition to the Customers. In this case the values of air travel in a country which typically does not lend itself to commercial aviation in comparison to a cheaper option of rail / ferry travel. Therefore customer service with a much lower single fare than the competitors. * Benefit...
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...sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services, regardless of fare. Ryanair sets fares on the basis of the demand for particular flights and by reference to the period remaining to the date of departure of the flight, with higher fares charged on flights with higher levels of demand for bookings made nearer to the date of departure. Ryanair’s Dublin to London (Stansted) route is its largest route in terms of passenger volume, with fares ranging from 0.99 to 199.99 (excluding government taxes and passenger service charges). Ryanair’s competitors generally do not operate a one-way pricing policy, so direct comparison is not possible, but current round-trip fares on Aer Lingus, Ryanair’s largest competitor on the LondonDublin route, for travel in September 2004 were 82.27 for economy restricted return tickets, 218.27 for economy flexible return and 353.75 for business class tickets. In July 2004, Ryanair launched a fare promotion offering a total of one million seats on certain routes for “ 0.99” (excluding government taxes and passenger service charges) for travel during the period between September 7, 2004 and January 31, 2005, and launched a similar fare promotion in...
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...Change Work and Diversity (British Airways) HR 0277 Change, Work and Diversity Part 1 Jasmine Koh W11039857 Word Count: 1893 Contents |Description |Page | |Executive Summary |3 | |Introduction |3 | |Change Management in British Airways | | |Organisational Context (British Airways: 2009 – 2011) |4 | |The Strategic Change itself as outlined by its management |4 | |The nature and extent of the strategic changes |5 | |The change management strategy |6 | |The challenges and management difficulties in implementing such change strategy |6 – 7 | |Conclusion |7 | |References |8 | |Appendices | | Executive Summary This report is a research on British Airway’s (BA) change program that resulted in long-running industrial disputes between its management and crew members in 2009 – 2011. It outlines the contextual information about BA, its strategic change as outlined by its management, the identification and evaluation on the nature and extent of such strategic changes, the change management strategy adopted and implemented and the challenges and management difficulties faced. The report also provides an insight on an understanding of change of management practice from standpoint through the change kaleidoscope; contexture features. Introduction British Airways, UK’s largest international scheduled airline which operates one of the most extensive international scheduled airline route networks, across 300 destinations worldwide, is a leading and established...
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...adding activities. Their strategy benefited with the economic downturn and financial depression, due to low air fares and people’s perception that it is the cheapest airline. S.W.O.T Analysis S: • Ryanair’s CEO: Michael O’Leary • Growing and making profits during an economic recession • Europe’s largest carrier by passenger numbers and market capitalisation in 2009 • Achievements – winning international awards • Profitable airline • Cost per passenger low • Low fares • Good on-time record • Few cancelations • Few lost bags • Using smaller lower cost airports enabling 25 minute turnaround times • Labour force is productive and flexible • Low fares • Frequent point to point flights • Low operating cost W: • Acquiring Aer Lingus • Accumulating losses of IR£20 million • Cutting cost by replacing lossmaking routes in UK and Ireland with more profitable routes (limited frequency in certain routes) • Airline noted for being controversial – bad media reports (e.g. annoying the Queen of Spain, plans to charge passengers to use the toilets during its flights) • Not recognising workers unions • Accused of poor working conditions • High turnaround could impact on high CO2 emissions O: • Economic recession assists Ryanair – the reduction in flights by the other European carriers in their plight to cut cost, is beneficial for Ryanair. • The EU expansion plans creates more opportunities for Ryanair T: • EU has established an Emissions Trading Scheme which will...
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...airlines took advantage of their discounted charges to put Europe’ system of regulation in pressure. Despite some attempts of IATA to contradict this trend, heavily regulated and fragmented airline industry collapsed and the liberalization of the European airline industry took place in late 1980s as a combination of OPEC oil embargo and Single European Act, predecessor from an agreement to the abolition of “pooling agreements”, pricing fixing and government subsidies. Competition: 1) British Airways: In 1986, BA become one of the world’s most extensive airlines routes (near 80% of its passengers passed to London Heathrow Airport). Ticket prices were offered accordingly to services desired, ranged from first class to economy. 2) Aer Lingus: Aer Lingus specialized on routes between Ireland and...
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...Dogfight over Europe : Ryanair (A) 1. Assessment of Ryanair's launch strategy To analyze the launch strategy of Ryanair i.e. its direction & purview to achieve advantage over rivals by adapting with available resources & build competency we need to first look into the industry level analysis, profitability potential & competitive dynamics and then assess its launch strategy. PORTERS FIVE FORCES * COMPETITORS : * Deregulation-increased rivalry, Competition for marginal customers * Strategic Alliances eg - Aer Lingus & BA * Comfort & premium services to Business Class * Increased use of online ticketing Ryanair’s Perspective: Intense & increasing competition (Aggressive) * ENTRY BARRIER : * Rise of Charter flights in Europe * European Deregulation-New Competitors; Pricing, routing, pooling abolished * Huge financing to enter may cause high entry barrier for new entrants * High maintenance costs & personnel costs * Low/unstable prices & profitability Ryanair’s Perspective: Moderate threat of entry * SUBSTITUTE : * Accessibility: Other cheaper form of transports eg-fast rail & land travel * Charter flights for Holiday goers * Flights bundling ancillary services such as lodging along with cheap fares Ryanair’s Perspective: Low threat from Substitutes * BUYER POWER : * Increased customer base for air travel due to increased competition...
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...Dogfight over Europe: Ryanair (A) Case In 1986, Ryanair announced that it would begin flight service between Dublin and London. The founders of Ryanair are brothers Cathal and Declan Ryan who essentially grew up in the airline world. At this time, the company had already been operating for a year, flying between Ireland and London with their 14 seating plane. In terms of competition, these two locations did not pose a challenge. However, the Ryan brothers recognize the competitiveness and complicated industry as they attempt to enter the European aviation business world. The European aviation business environment has been heavily impacted by the European national government. Following World War I, several private commercial airlines arose carrying the flag of their nations. These “flag carriers” and other airways gradually became owned by or subsidized by their national governments. Governments began focusing on international routes from their respective capital to colonies and other areas of national influence. World War II brought several advances in the airline industry as air travel became increasingly economical for the average individual. The war also brought the threat of American dominance in the airline industry as efficient and privately owned carriers of the United States would have captured a large portion of the international market. As time passed, European governments continued to consolidate airlines, impose further restrictions on international routes, create...
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...Ryanair was set up in 1985 by the Ryan family and transformed the air service market in Ireland by competing with the then more powerful Irish carrier, Aer Lingus. Through its rapid growth, Ryanair has also transformed the airline industry in Europe over the past decade. According to Doganis (2001), Ryanair was indeed the first low-cost, nor frills airline that had an impact on the European airline industry. 1. By using the business model framework, explain how Ryanair managed to reach profitability in the overloaded European airline industry. There are as many definitions of business model as there are authors. Most of them emphasize the link between the concepts “strategy” and “Business Models”. To a certain extent, business model “may be defined as an abstract representation of some aspect of a firm’s strategy” (Seddon et al., 2004, p.440), as the “stories that explain how enterprises work” (Magretta, 2002, p.87). The business model framework encompasses both an external and an internal analysis. External Analysis The External Analysis examines opportunities and threats that exist in the environment in which a firm competes. Opportunities refer to favorable conditions that could produce rewards for the firm if acted upon properly, whereas threats refer to conditions that may prevent the company from reaching its objectives. Both exist independently of the firm. The External Analysis is also known as the PEST Analysis, an acronym for political, economic,...
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...1. Identificación de Competidores por medio de la Cruz de Porter Hemos decidido para hacer un examen más exhaustivo del caso realizar el análisis de la Cruz de Porter por completo. No sólo enfocándonos en los competidores (Aer Lingus, British Airways) sino también ver las otras variables para poder comprender mejor el escenario en el que se desarrolló la nueva compañía. RYANAIR Clientes Proveedores Sustitutos Competidores ENTORNO COMPETITIVO ESCENARIO Poder de negociación de los Clientes: Ryanair ha decidido finalmente ingresar al mercado interno que ofrece la ruta Dublin-Londres. Como consecuencia de la inclusión de una aerolínea adicional a este mercado, resultará inevitable un aumento en la competencia, que se traducirá en bajas de precio a favor del consumidor (Ryanair oferta sus vuelos sin restricciones a un precio de penetración un 52% menor que los que proporcionan AerLingus y British Airways) pero a su vez en altas en los costos para mantener las ventajas competitivas que los hermanos Ryan pretenden resaltar. Si éste precio de penetración (98 libras irlandesas) no resulta lo suficientemente llamativo como para que el consumidor elija Ryanair como su principal aerolínea para cruzar de Dublin a Londres en lugar de optar por las 2 compañías más tradicionales de la zona, la empresa se encontrará ante una fuerte presión por parte del consumidor, que podría llegar a desestabilizar su estrategia. La fuerza negociadora del cliente, podría obligarlos a replantear...
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...| Dogfight over Europe: Ryanair (A) | Case Analysis | MGMT 480 BUSINESS PLANNING AND STRATEGYDR. Ayman Ismail DR. Iman Seoudi | Farah Amin | 10/22/2015 | I. External Environment Analysis A. PESTEL Trends Analysis Political and Legal: Deregulation of airline industry in the late 1970s. In the 1970s there was a general trend to deregulate the airline industry which had previously been mainly controlled by governments. So each government set fares rates, routes, customer service policies, entry and exit, intercarrier agreements, mergers, and consumer issues for its flag carriers as well as private businesses. However, in 1978, the US airline industry became partially deregulated through the Airline Deregulation Act. And even though this movement started in the US airline market it started to spread through European countries when the European commission proposed the deregulation in 19842. This would later result in less involvement of governments in policies of airline businesses. Oil Embargo in 1973–1974 As a result of the Arab-Israeli War in 1973, the US government decided to re-supply the Israeli military in its war against Arab countries. Consequently, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States, which was extended to other European countries that supported the Israeli government. This embargo resulted in the ban of petroleum exports to those countries and introduced cuts in...
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...Alper Küçükaslan S000773 COCA-COLA WARS CASE ASSIGNMENT 1. Compare the economics of the concentrate business to that of the bottling business: why is the profitability so different? (Use 5-forces analysis for both industries) Concentrate business requires relatively less capital investments. This factor makes easier entering to the market. Less material usage and few input requirements also makes threat of substitutes and services more applicable however, Coke & Pepsi grants %72 of the market so that there is a high risk of market entrance in concentrate business. Also, high costs of marketing (advertisement & promotions) require a solid brand image and sustainable budget so that it’s hard to compete in such a market. Furthermore, customer loyalty and economies of scale makes this market profitable for huge players such as Cola and Pepsi. Bottler business on the other hand requires high investment capital and too much operational cost which makes harder for new entrances to the market. Bottlers’ gross margin exceed %40 whereas their operational margin is %8 which is 1/3 of concentrate businesses. Bottlers are responsible for their own logistics and sales forces territorially and they are bounded on their pricing strategy through their contract with suppliers (Coke & Pepsi) so that their operational profitability remains low. More inputs and operational costs weaken bargaining power of suppliers however; because of high sales volumes and solid brand image with...
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