...Executive Summary Ryanair operates as a cost leader in the European low cost carrier segment of the airline industry. As a cost leader they aim to achieve high volume sales by attracting customers with low prices. As a result of charging some of the lowest prices in the industry, Ryanair has seen growth in traffic and reported record revenues. To remain profitable the company focuses on maintaining low costs and efficient operations. The key issues facing Ryanair include how to remain profitable in light of rising fuel prices and currency exchange risk, the ability to maintain market share and growth in a segment characterized by intense competition, and whether or not it would be profitable to expand into the growing international/emerging markets and internet retailing space. In addressing these key issues, it is recommended that Costco focuses on opportunities in the internet retailing space to grow bottom and top line growth as well as increasing market share. It is also recommended that they remain committed to their low cost high inventory turnover strategy in order to continue to offer consumers the lowest prices and achieve high inventory turnover. By taking these initiating the strategies summarized above, Costco will be able to maintain their position as market leader and continue to operate profitably in the discount membership warehouse segment of the retail industry. Business Model & Strategy Ryanair operates as a cost leader in the low cost...
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..._Jelm Case 2: Ryanair 1-1-2011 Case 2: Ryanair Authors: Place: Leeuwarden Date: 22th of December2011 School: Education: Module: Strategic Management Year: 3 Version: 1 Word count Core text: 9706 Total: 7932 Table of content Preface 5 1. Summary of Ryanair 6 2. Problem statement 7 3. Corporate Strategy 8 3.1 Strategic development 8 3.1.1 Intended Strategy 8 3.1.2 Emergent Strategy 8 3.1.3 Strategic Lenses 8 4. Organizational Environment 9 4.1 PESTEL Framework 9 4.2 The Five Forces framework 12 5.2.1 The threat of entry 12 5.2.2 The threat of substitutes 12 5.2.3 The power of buyers 12 5.2.4 The power of suppliers 12 5.2.5 Competitive rivalry 13 5. Strategic capability 14 5.1 DuPont Analysis 14 5.2 Robustness 16 6. Competitive Strategy 18 7. Strategic Purpose 20 8. Business Economic Analysis 23 8.1 Liquidity 23 8.2 Solvability 23 8.3 Profitability 24 8.4 Efficiency 24 9. SWOT analysis 25 9.1 SWOT of Ryanair 25 9.1.1 Strengths 26 9.1.2 Weakness 26 9.1.3 Opportunities 26 9.1.3 Threats 26 10. TOWS Analysis 27 11. Alternative courses of action 28 12. Decision and Reasoning 29 9.1 Top 2 Alternatives 29 13. Implementation 30 Literature 31 Figure list 33 Preface The following report is written on behalf of the module Strategic Management, by students of Leisure Management. The case to write this report is “Ryanair” and the strategies that...
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...Table of Content RYANAIR THE COMPANY 3 Section A 4 Slow Growth 4 The impact of slow growth on the industry 4 Taxation 4 ECONOMIC FACTORS 5 Unemployment 5 GNP trends 5 Inflation 5 Exchange rates 5 Interest rates 6 Security Factors 6 The Threat of close substitutes and rivals 7 HIGH FIXED COSTS; 7 AIRPORTS 7 PORTER’S FIVE FORCES 9 Threat of new entrants 9 Suppliers: 9 Buyers: 9 Substitutes: 9 Competitive rivalry: 9 Section B 10 Firm Infrastructure 10 Human Resource Management 10 Technology Development 11 Procurement 12 Inbound logistics 12 Operations 12 Outbound logistics 13 Marketing and Sales 13 Service 13 Margin 14 Joint Venture 14 SECTION C 15 Ryanair Business Strategy 15 Low Fares: 15 Customer service: 15 Frequent Point-to-Point Flights on Short-Haul Routes: 15 Low Operating Costs: 15 Taking Advantage of the Internet: 16 Commitment to Safety and Quality Maintenance: 16 Enhancement of Operating Results through Ancillary Services: 16 Analysis of the airline business models 16 Ryanair’s strategy in future: 17 Focused Criteria for Growth: 17 New Aircraft-markers: 18 New design ‘standing seats’ 18 SWOT Analysis 19 Strengths 19 Weakness 19 Opportunities 19 Threats 19 BIBLIOGRAPHY 20 RYANAIR THE COMPANY The company was incorporated in 1995 and became Ryanair limited, and in 1996 it changed to a holding company for Ryanair limited. Registered...
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...Easyjet Airline was established in 1995 by Sir Stelios Haji-Ioannou a Greek Cypriot as part of EasyGroup Holdings Ltd. He envisaged it as a low cost airline which could impact on the existing domestic market in the UK which was at the time dominated by large British companies such as British Airways and British Midland. The Company started with two leased airplanes and began operating from London Luton to Glasgow and Edinburgh In 1996 they began operating from Luton to Amsterdam and now in 2014, operate on 633 routes across more than 30 countries and own 217 Airbus aircraft. They employ over 8,000 people including 2,000 pilots and 4,500+ cabin crew and in 2013 they flew over 60 million passengers They now claim that “over 300 million people within a one hour drive of an EasyJet airport” (Easyjet About Us 2013) The obvious move for the airline for further growth may now be outside of Europe and India may be the best market to consider. PESTLE Analysis Political/Legal Up to April 1997 the European Airline Market was regulated strictly and each county controlled their own airline companies. After 1997 and deregulation the European market opened up for carriers and subsequently for example an Irish low cost carrier like Ryan Air was allowed to operate between two other European countries. Since then European routes have increased by140% ( Ingdahl W. “Flying has never been safer” Spiked 19 03 2014) This was followed by the EU/USA Open Skies Agreement allowing any airline of either...
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...------------------------------------------------- Ryanair: Strategic Analysis ------------------------------------------------- Ryanair: Strategic Analysis Principles of Marketing and Management Principles of Marketing and Management Table of Contents 1. Executive Summary 2. Issues and Outlook Profile 3. External Analysis 4. Internal Analysis 5. Strategy and Implications from Analysis 6. Action Plan Executive Summary Ryanair is a low-cost Irish airline operating to 178 destinations within the European Union. It’s Chief Executive Officer, Michael O’Leary reported revenues of €3.629 Billion for the fiscal year of 2011, bringing profits of €374.6 Million. As can be seen in the Issues and Outlook Profile, there are a number of issues confronting the firm. Its controversial advertising, employee relations, susceptibility to oil prices and worldwide conflict, and its dependency on its CEO, are all areas which the firm needs to address. The success of the firm has been credited to the fact the company offer the bare minimum services for the cheapest price, negotiate cheap and rewarding contracts with mainly secondary airports, utilise a modern and thus efficient fleet of 291 aircraft, and charge for any additional services which the customer might require. Despite the success of the firm to date there are several areas in which it can improve. Firstly, by continuing its pursuit to purchase Aer Lingus the firm could become one of the largest and most profitable airlines in the world...
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...Management Research Report What has British Airways done during the recession to be competitive against Ryanair and Easyjet? Table of Contents 1. Introduction ………………………………………………………………………………………………….. 3 2. Methodology …………………………………………………………………………………………………. 4 3. Short History 3.1 British Airways ……………………………………………………………….……………………5 3.2 Easyjet and Ryanair………………………………………………………………………………..6 4. Prior to the Recession 4.1 British Airways ……………………………………………………………………………………..7 4.2 Easyjet …………….………………………………………………………………………………...8 4.3 Ryanair ……………………………………………………………………………………………... 9 5. Recession and Airline Industry 5.1 Impact of current recession on the airline industry …………………………………………….. 10 5.2 Impact of recession on British Airways …………………………………………………………... 11 5.3 Impact of recession on Easyjet and Ryanair …………………………………………………….. 16 6. The Strategies implemented by British Airways 6.1 Strategies implemented to compete against Easyjet and Ryanair……………………………… 18 7. Recommendation ……………………………………………………………………………………………… 23 8. Conclusion ……………………………………………………………………………………………………... 24 9. Reference and bibliography……………………………………………………………………………………. 25 1. Introduction This report will focus on the current economic crisis and the effect it has had upon British Airways. The passenger figures at London Heathrow, Gatwick, Standsted and other major airports have dropped by 7.4 per cent last...
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...Internal And External Factors Controlling Ryanair Commerce Essay The following report analyses how internal and external factors control to the strategy that Ryanair Plc is following. This report undertakes a detailed study of Ryanair which include a brief outlining of the company’s products and services. Mission, vision and values of the airline will be also explained. It evaluate company’s current strategy and the management of that strategy. It also gives a brief evaluation of Ryanair’s financial structure as well as an environmental analysis of the European airline industry and how this affects Ryanair. Each section of the following report represent the key findings. Introduction to company section includes Ryanair’s background, mission and vision statements, Corporate Social Responsibility policy, company’s stakeholders. External environment section include SWOT analysis. This analysis explain Internal (Strengthens and Weaknesses) and External (Opportunities and Threats) factors. Furthermore, PEST analyse is described. In order to understand company’s profitability in relevance to the competitors, the Porter’s Five Forces framework is used. In Financial sector the turnover , profit margins, operating profit, current ratio, solvency ratio, gearing ratio and the comparability of these during 2006-2008 period is explained. Using the Ansoft’s growth matrix the main strategic direction that Ryanair follow was indentified. The methods of development such as low cost, no-...
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...1: Case Study European Airline Industry Strategic Management Contents |Main Body |4-10 | |1 Introduction |4-5 | |2 Summary of macro-environment analysis |5-7 | |3 Summary of industry environment analysis |7-8 | |4 Other critical factors for the airline industry |8-9 | |5 Future directions/recommendations |9-10 | | | | |Appendices |11-26 | |1 Macro-environment analysis |11-16 | |2 Industry environment analysis |17-26 | Reference List 27 Main Body 1. Introduction The European airline industry is a vigorous industry with changing trends that relate to the overall European economy. Traditionally, the European airline industry was mainly comprised of full-service carriers, such as Lufthansa and British Airways. Nevertheless, this situation changed quite swiftly (Datta & Chakravarty n.d.). Government deregulations freed European airline markets from restrictions...
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...Master’s thesis M.Sc. in EU Business & Law An analysis of the European low fare airline industry - with focus on Ryanair Student: Thomas C. Sørensen Student number: 256487 Academic advisor: Philipp Schröder Aarhus School of Business September 13, 2005 1 Table of contents 1. Introduction 1.1. Preface 6 1.2. Research problem 6 1.3. Problem formulation 7 1.4. Delimitation 7 2. Science and methodology approach 2.1. Approaches to science 2.1.1. Ontology 2.1.1.1. Objectivism 2.1.1.2. Constructivism 2.1.2. Epismotology 2.1.2.1. Positivism 2.1.2.2. Hermeneutics 9 9 9 9 10 10 10 2.2. Methodology 2.2.1. Types of research 2.2.2. Types of data 2.2.2.1. Quantitative data 2.2.2.2. Qualitative data 2.2.2.3. Primary and secondary data 11 12 13 13 13 14 2.5 Reliability and validity 15 3. Theoretical framework 3.1. The structure of this thesis 16 3.2. Theory on strategy and competitive advantage 3.2.1. The Positioning School 3.1.1.1. Theory on Porter´s Five Forces model 3.2.1.2. Theory of Generic Strategies 3.2.2. The Resource-based School 3.2.2.1. Theory on SWOT analysis 18 24 20 23 25 27 4. The low fare airline business model 4.1. Introduction 28 4.2. Differences between the LFA model and the FSA model 4.2.1. The service factor 29 29 2 4.2.2. Turnaround times 4.2.3. Homogenous fleet 4.2.4. Point-to-point travel vs hub-and-spoke travel 4.2.5. Higher seat density 4.2...
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...QUESTION 1 Which developments in the global airline industry made possible the creation of S.A. ? The creation of Star Alliance had first been considered to remedee a situation of radical change in the airline industry’s financing sources. For decades, world governments overpassed the consequences of a substantial cash investment in their National Airline. At the time, State incentives to possess its own flag carrier were numerous. It was question of national pride as well as a sign of economic prosperity and power. But times have changed. As State capital investment became the norm rather than the exception, most of the developped countries had been able to run their own Airline, making it the norm. If governments had been burying their hands in the sands up to this point, they suddenly started questioning the worthiness of the investment. By cuting subventions, they would let airline companies face the harsh reality of competition. Both the government-owned carriers and those who had long been operating under a situation of false profitability filled for bankrupcy (i. e. Sabena, Swissair). Other, more solid carriers (i. e. Lufthansa, United, British Airways, American) were left with no other choice but to form alliances. 2 In addition, the phenomenon of deregulation forced leading carriers to take strategic decisions in order to avoid significant loss in market share. With the signature of open skies agreements that liberalized the rules of the international...
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... R E I N H A R D 301109\MBA FILES Druck: 20.11.13, 22:42 REPORT ABOUT EASYJET Seite 2/53 Executive Summary Deregulation has seriously changed the environment and structure of airline industry. Out of STEP analysis I have identified the following ain issues: Deregulation will stimulate competition, but also market growth Lower prices will cause focus on costs Focus on security measures will increase costs There is no need for added values in connection with prestige Analysing the airline industry by Porter’s “Five Forces” I have stated: Big Player and/or Alliances fight a price war, often using a second brand (Buzz, etc.) Big Players have not identified and reacted on the change in environment Few structural changes to support the need of cost effectiveness und to bring them in line with new customer requirements Because of the very static picture I have supported that analysis by BCG strategic model: BCG's Strategic Enviroments Matrix Many Source of Advantage FRAGMENTED Airline Industry SPECIALIZATION 2nd brand for Budget Segment STALEMATE Budget Airlines VOLUME Few Small Size of Advantage Big Global airlines which come from the „Fragmented Segment“ with a 2nd brand try to enter direct the „volume market“ taking their costs for product differentiation with them, causing not competitive costs Airliners like EasyJet coming from the “stalemate segment” into the “volume segment” are focused with their strategy on the real customer...
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...CONFIDENTIAL EXPERT REPORT Research Study of the Civil Aviation Sector in India SUBMITTED TO: The Ministry of Corporate Affairs, Govt. of India, India SUBMITTED BY: Nathan Economic Consulting India Pvt. Ltd., India www.nathaninc.com January 24, 2012 CONFIDENTIAL Table of contents 1. 2. 3. 4. 5. Executive Summary ................................................................................................................................. 1 Introduction .............................................................................................................................................. 7 Market Structure and Competition Issues ......................................................................................... 11 Identification of Anti-Competitive Provisions and Practices ......................................................... 15 Analysis of the Identified Issues .......................................................................................................... 24 5.1 Fleet and Equity Requirements ................................................................................................................... 24 5.2 Route Dispersal Guidelines......................................................................................................................... 29 5.3 Slot Allocation ..............................................................................................................................................
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...Australian airline industry. It has been faced with a marked decline in global tourism after the September 2001 terrorist attacks in the United States. Recently, there has been traffic loss which is attributed to the war in Iraq and severs acute respiratory syndrome (SARS) occurrences in parts of Canada and Asia. In addition, to this mayhem the industry has gone through main structural changes since 1990s. There were four airlines on the essential routes but currently they are two. In 2000, the local trunk routes were controlled by Ansett Australia and Qantas Airways with new competitors Impulse Airlines and Virgin Blue rising in niche market. Currently the industry has irregular two airline structures, with Qantas leading since its occupation of Impulse Airlines in 2001 and the Ansett group’s following collapse in September 2001. On the contrary, Virgin Blue is not a member of an association, its service frequencies are reserved in comparison with those of Qantas, and its local network is not as extensive as that of Qantas is dynamic. In reaction to Virgin blue success, Qantas is taking steps to expand its allocation of the budget travel market, while Virgin is now in quest of expansion past its vacation traveller position by developing its business travel market. The government is showing a liking for administrative way outs such as a certain number of local airline slots at climax times, a restriction on the number of hourly travels, and the noise clampdown to ‘economic’ way...
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...(stakeholders), and what makes the organization unique (justification for existence). Mission statements always exist at the top level of an organization, but may also be set for different organizational levels or components. A mission statement is simply an organization's reason for existing. Vision Statement: Vision statement identifies where the organization intends to be in the future or where it should be to best meet the needs of stakeholders. Incorporates a shared understanding of the nature and purpose of the organization and uses this understanding to move the organization toward a greater purpose. Objectives: After developing mission statement, objectives are required to define. Objectives are much specific than mission statement For example- I want to finish my assignment by 10 o’clock this morning. This indicates to perform a number of tasks including typing text into computer, reviewing some questions/criteria that have already be written, printing out the assignment for proofreading and so on. Goal: Goal is a target to achieve within a specific time. Without goal or aim, you cannot live (lead) your life happily and with the feeling of satisfaction. Goal can be one or more objectives that need to be achieved by specific time....
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...de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development DAF/COMP(2014)14 06-Jun-2014 ___________________________________________________________________________________________ English - Or. English DIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRS COMPETITION COMMITTEE DAF/COMP(2014)14 Unclassified AIRLINE COMPETITION -- Background Paper by the Secretariat -18-19 June 2014 This document was prepared by the OECD Secretariat to serve as a background note for Item IX at the 121st meeting of OECD Competition Committee on 18-19 June 2014. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. More documents related to this discussion can be found at http://www.oecd.org/daf/competition/airlinecompetition.htm. English - Or. English JT03358883 Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. DAF/COMP(2014)14 TABLE OF CONTENTS Introduction ................................................................................................................................................. 3 1. Features of the airline industry .........................................................
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