...of low fares. The branded airlines argue that passengers are willing to pay more for a better level of service. You can pre-assign seats. You get food and drink onboard, and can choose a higher level of service e.g. business class. However the large flag carriers have taken notice of the low-cost model and have employed it as part of their own more differentiated business model. In 2009 the company settled for 30% of its local Irish rival Aer Lingus after a prolonged takeover bid. Tough trading conditions meant that Ryanair made its first annual loss in 2008/9. O'Leary put this down firmly to rising fuel costs (as did British Airways in the same year). The company also needed to take into account the burden of purchasing its stake in Air Lingus. So in reality things are looking good for Ryanair and its budget operation - since the business aimed to fly...
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...Ryanair’s Business Class I am going to analyze this article using VRINE model but first I will explain briefly what VRINE model is. The first letter V stands for valuable and it means a resource or capability is valuable if it allows a firm to take advantage of opportunities or to fend off threats in its environment, for an example Union Pacific Railroad’s rail system is a tangible resource that allows UP to compete with other carriers in the long-haul transportation of a variety of goods. The second letter R stands for rarity and it means a useful resource or capability that is scarce relative to demand, for an example when McDonald’s signs an agreement to build a restaurant inside a Wal-Mart store, it has an intangible advantage over Burger King that is valuable and rare. The third letter I stands for inimitability and it means a resource or capability is inimitable if competitors cannot acquire the valuable and rare resource quickly, or face a disadvantage in doing so, for an example Barnes & Noble’s large store network gave it access to customers and purchasing power that was inimitable. The fourth letter N stands for non-substitutability and it means if a competitor cannot achieve the same benefit using different combinations of resources and capabilities then it is non-substituable, for instance using the previous Barnes & Noble’s large store network as an example because it was inimitable so people found Amazon.com as a substitute with better deals. Lastly...
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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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...portfolio. While reviewing and analysing the competitive strategy of Ryan Air, it is observed that the company is offering the low cost products to its customers (Ryan Air, 2012). In other words, the Ryan Air believes that the low cost services and products is the key ingredient of its success as yet. This product strategy also defines that the company has applied and executed the cost leadership strategy as suggested under the Porter’s Generic Strategies. The aim of Ryan Air through low fare is to stimulate the demand. As a result, it helps the company to attract the travellers those are price conscious, rather than quality (Kahawatte, 2010). However, it does not mean that Ryan Air does not comply with the health & safety regulations, but it only focuses on the basic necessities to avoid extra costs. In addition to the above, the Ryan Air does not bind its customers to book two way tickets which also motivate customers. 3.2 Product Strategy: Developing and executing the appropriate product and service strategy has always been one critical area for Airline companies. Ryan Air, being the cost leadership in the global Airline industry promises to offer the excellent customer services which help it to satisfy the customers’ demands and expectations (Mennan, 2005). However, the prices are set in accordance with the demand which eventually fluctuates and the price list always fluctuates. This has helped the Ryan Air to create its demand, increase its market shares and attract cost...
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...through the internet, books, newspaper articles and other related material. Introduction Slaters Colwyn Bay Slaters of Colwyn Bay are a local Vauxhall and Saab main dealer. They specialise in the sales and servicing of new and used Vauxhall and Saab motor vehicles. Slaters offer an extensive range of second hand cars ranging through various manufacturers; depending on cars they have taken in part exchange. Slaters also provide an on site parts department, stocking mostly Vauxhall and Saab parts, but also offering a range of products from other leading manufacturers. Slaters also have a bodywork shop based at their compound in Mochdre, where they offer services like body repairs, paint work and alloy wheel refurbishment. Ryan Air Ryan Air operate over 1400 flights per day from 44 bases, and over 1100 low fare routes across 27 countries, connecting 160 destinations. They employ a team of more than 8000 people and carried approximately 73.5 million passengers within the last year. Vodafone Vodafone Group plc provides mobile communications in Europe, Africa, the Asia Pacific, the Middle East, and the United States. The company owns and manages approximately 2,100 stores selling services and providing customer support, as well as operates approximately 7,600 Vodafone branded stores to sell its products and services through franchise and dealer arrangements. The company has approximately 341.1 million mobile customers. They currently employ nearly 85,000 people...
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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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...DOG FIGHT OVER EUROPE – RYAN AIR Protagonist. Cathal and Declan Ryan of RyanAir. Macro & Micro Industry Analysis. * 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...
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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...
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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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...May 12, 2014 The Media and its Responsibilities The media should follow certain ethical standards for the information they present to the public. Most people get their information from watching the news, the internet, listening to the radio and other forms of media. The reporters and journalists providing the information through media outlets have a responsibility to provide neutral and honest information to the general population. The media must remain accountable for producing information that can be verified with records. They must also be liable for the consequences of reporting their stories. If the story that is being reported is not done appropriately it could lead to negative consequences. Media outlets need to follow sets of ethical guidelines to ensure that they are providing accurate and valuable stories. The media needs to provide information that is ethically sound so that people are able to receive the news in a non-biased, factual way. This includes opinions on political stances, as well as reports on current events in our communities. If the media reports a story in a way that could sway the viewer, or misrepresent the facts, it could affect how the public reacts to this event. Misrepresenting the facts in a story can lead to pretty severe problems for the people. The people could be angered or panicked from the news they hear, or it could lead to false reports about an innocent person among many other potential negative impacts. A solid way to analyze...
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...of the reasoning by which the conclusion was reached. A sound argument is both true and valid. B ■ ERRORS AFFECTING TRUTH Errors affecting truth are found by testing the accuracy of the premises and the conclusion as individual statements. The first and most common error in this category is simple factual inaccuracy. If we have investigated the issue properly and have taken care to verify our evidence whenever possible, such errors should not be present. We will therefore limit our consideration to the more subtle and common errors: ISBN 1-256-46689-1 • • • • Either/or thinking Avoiding the issue Overgeneralizing Oversimplifying 209 The Art of Thinking: A Guide to Critical and Creative Thought, Tenth Edition, by Vincent Ryan Ruggiero. Published by Pearson. Copyright © 2012 by Pearson Education, Inc. 210 Chapter 12 Evaluate Your Argument on the Issue • Double standard • Shifting the burden of proof • Irrational appeal Either/Or Thinking This error consists of believing...
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...RYAN FUNERAL HOME CASE INTRODUCTION On a warm Chicago evening in August 2005, Regina Ryan leaned back in an overstuffed armchair in her brightly lit apartment above Ryan Funeral Home. Seventy-five years old and a widow, Regina smiled as she looked at the sons and daughters gathered before her: Maureen, Patrick, Sean, Brendan, Conner, and Siobhan. Finally she spoke: “Your father was proud to own his own funeral home. He built this from nothing to what it is today. By serving local families so well, the name Ryan Funeral Home has come to mean compassion, integrity, and quality to those in this area. Reputation is everything in the funeral business. “He’s gone now, and I must decide what’s to become of all this. I always thought it would be a simple decision: pass the business to the next generation.” “It’s not so simple. The funeral industry has changed dramatically from what it was when we started out. It’s much harder to make a living than it once was. Nonetheless, I know that the reason your father started this business was because he wanted something to pass on to his children. This was to be his legacy.” As her mother spoke, Maureen thought about how important the future of Ryan Funeral Home was to her personally. She was the only one of the six children who had become a funeral director, and she has worked alongside her father for eleven years. Maureen often met with families to make funeral arrangements when her father was busy elsewhere...
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...Case Study Questions: 1. What is the difference between a pull and a push strategy? Which of these strategies did the Fred Astaire Super Bowl campaign exemplify? According to Week 6 lecture notes: “Consumer Sales Promotions use Pull Strategies, which means "The use of incentives to motivate end users to purchase a brand and thus pressure retailers to stock that brand." This consumer demand then pulls the product through the distribution channel. Trade Promotions use Push Strategies, which means "The use of incentives to motivate the buying and reselling of products." These strategies push the product through the distribution channel.” The case study clips actually state that “The Astaire campaign was designed to pull Dirt Devil products through traditional indirect distribution channels.” Not only did it have the 45 seconds of air time that was memorable to create the buzz about the product but it gained added publicity through the “200 television stories and a 1100 printed articles, giving Dirt Devil an estimated $5 million worth of total publicity from the Superbowl campaign.” This was a definite positive use of MC to create brand recognition and motivate the end user to purchase the product. b) In your opinion, why was this successful campaign? It was a successful campaign for two reasons: 1) Dirt Devil used the power of the media to create the buzz about its new product. By having air time during the Superbowl you are actually...
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...• Be competent in discussing the major concepts underpinning business level strategy and applying these in business case settings. • Be capable of applying a series of fundamental business strategy tools (including industry analysis, competitive strategy and resource and capability tools) and techniques to the formulation and analysis of value creation and capture at a strategic level. Porter 5 Force analysis Porter framework assumes: 1. industry structure drives competitive behaviour 2. Industry structure is (fairly) stable. [pic] Case: Airline Industry …. Porter’s 5 forces – purpose: Identifying the different stakeholders, or ‘forces’, which affect: • The level of competition in an industry. • The ability of a company to become powerful in that industry. Threat of New Entrants : • Company’s Point of view • Industry Point of view • Huge Capital Required • High Maintenance Cost • Brand Identity. • Govt. Policy Supplier’s Bargaining Power • Aircraft Manufacturers • Fuel Companies Buyer’s Bargaining Power • Travel Agents • Business Travelers Threat Of Substitute • Railway service • Bus service • Water Transport • Video conferences (for business flyers) Competitive Rivalry • Highly Competitive Industry. • Can work as growth driver for Industry. External Analysis: Porter’s Five Forces...
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...gas inside by drilling or injecting fluid into the ground at high pressure. According to thedangersoffracking.com each job uses from 1 to 8 million gallons of water mixed with chemicals to make fracking fluid. The fracking fluid contains up to six hundred chemicals including numerous carcinogens and toxins. In this essay I will be explaining why fracking should be stopped. First, the air quality around the fracking sites has become dangerous. The emissions are leaking from wells; the most notable offender being methane which is a greenhouse gas commonly is linked to being a component of global warming. The air has contained chemicals like benzene, sulfur dioxide and hydrogen sulfide. These chemicals have been known to cause lung related issues as well as several types of cancer. In high enough doses these chemicals could cause death, in humans and livestock alike. Volatile organic compounds are released into the atmosphere from the waste fluid produced during fracking. These waste fluids are unsafely left in open air pits to evaporate creating acid rain, ground level ozone and contaminated air. All of these unnatural occurrences are devastating to surrounding communities, and ecological systems. The once pristine fields in Wyoming now have an ozone count higher than LA on its worse days (Jackson 3). The amount of children with asthma has risen from nine to twenty five percent of children in Texas. The ozone levels have been found to cause dangerous changes in the heart, leading...
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