...3.1 Competitive Strategy: It is a fact that the competition in global airline industry has increased to the greater extent. As a result, airline companies have to develop and maintain the competitive advantages to attract and maintain the customer 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...
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...------------------------------------------------- ------------------------------------------------- Ryanair Q1. The business model framework is composed of several items; the price, the services, the distribution/the communication, human resources, organization/management, and operation/processes which should all be serving the strategy that the firm wishes to pursue. The following explains how Ryanair has been able to offer low fare tickets in Europe, using the above mentioned elements in the framework. The core business of Ryanair is to be a budget airline, and its strategy in order to achieve competitive advantage in that market is, regarding pricing, focused on keeping them as low as possible by cutting all extra expenses. Ryanair manages to offer lower prices than its competitors by sticking to only offering the basic service- which is the air transport from one city to another. All the extra services that are usually included in the price of other conventional airplane companies are charged as extra-costs by Ryanair. For instance, Ryanair’s clients have to pay for checking in luggage, as well as food and beverages inside of the airplane. In relation to Ryanair’s product offer, its service, the firm pursues the following to keep prices low. In order to limit the number of ground staff at the check in desk, Ryanair’s customers are increasingly encouraged to check in online. Furthermore, Ryanair does not offer its customers the ability to reserve seats, but instead a priority ‘check...
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...Ryanair has thrived since the early 90’s due to a number of factors were luck was on their side but also through innovative and creative ideas. Ryanair’s strategy was to become the first European budget airline. Ryanair made key strategic decisions regarding the long term direction of the company and the scope of their activities while considering the external environment in order to achieve strategic fit. The first strategic move in order to become a successful low-cost airline was to recruit Michael O’Leary in 1992. O’Leary introduced many changes to Ryanair by implementing a strategy similar to that one of Southwest airlines from the USA. First of all, O’Leary aimed to increase the number of cheap flights on Ryanair’s offer. The next step was to decrease the age of Ryanair’s aircrafts from 7 to 2.4 years. Thus, Ryanair was able to save costs as the new aircrafts produced 50% less emissions, 45% less fuel burn and 45% lower noise emissions per seat. This way Ryanair was able to offer cheaper prices than the competitors, but at the same time still be environmentally friendly. Another source of competitive advantage is the strong branding. Ryanair was claimed to be the largest travel website in Europe and the fifth most recognized brand on Google (case, p. XX). The exceptional branding was a great opportunity for Ryanair to enter the e-commerce market where it receives revenue from advertising car rentals and hotels. Ryanair’s most important stakeholder is their customers...
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...The development and future strategy of Ryanair Ryanair became in 2009 the airline company which carry the most passengers in Europe. That is the result of its strategy which is based on a ‘no frills’ service in order to offer the lower prices. The business model of Ryanair is different from the classic carriers’ in the way that 20% of its revenue is generated from ancillary revenue, such as its “buy on board” program or extra fees for luggage. As we have seen above, the airline industry is very dynamic, and the apparition of alliances within the market forces Ryanair to stay competitive in its environment. Until now, the company did it very well by being emergent, its flexible structure and culture allowed Ryanair to be the number one on its market. To keep this place, Ryanair needs to adapt itself by choosing a development strategy. For that, there are different directions that Ryanair might take. Development opportunities “In a decade or so, airlines will pay the travellers to distribute people around Europe” Michael O’Leary, the Ryanair’s CEO summarizes the future direction of its company with this sentence. Therefore, Ryanair has to continue to find innovative cut reduction methods, as well as innovative revenue generation methods. In order to remain competitive with its business model, Ryanair will need to have the largest amount of routes in Europe and the lowest fare. It is now clear that there is only room for one or two major actors in the low-cost airline...
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...Yahuan Chen Przemysław Czerklewicz Concepción Rodríguez Vázquez Emre Vatansever Haojun Zhu Ryanair: brief analysis of its entrance strategy. As we all know, from the perspective of time, Ryanair entrance to British market was only just a beginning of its story of success and its path to an incredible leadership. This, however, was not that clear if we consider the company’s situation in the very moment when it all started. In this brief work we will try to analyze Ryanair’s strategy, disposing only of the data that was available to the company back then and we will try to estimate if this strategy is going to be successful. In order to do that we will describe the industry using Porter’s five forces and generic strategies framework. Industry examination: Suppliers: The importance of suppliers in this industry is huge due to a limited number of possible solutions that in some cases is close to a monopoly. Main suppliers are fuel and oil providers, unions of staff and pilots, airports, companies that lease aircrafts and specialized personnel like technicians or engineers. Most of them are unique and work with major airlines and a small airline, operating in one connection has no power to negotiate any conditions. The only way for an airline to dispose its self of their influence is backwards integration. New entrants: Airline industry is a particular case in which we can observe some really strong barriers of entry. On one hand, the cost of an air fleet, though planes can be leased...
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...Strategic Planning STRATEGIC BUSINESS PLAN for (company name) for Period January 2002 to December 2005 (dates are examples only) Approved by (name), (position), on (date) Update Status: (amendment number), on (date) TABLE OF CONTENTS Executive Summary Section Page 1. Strategic Focus 2. The Business 3. Market Analysis 4 Products 5 Marketing 6 Research and Development 7 Production and Delivery 8 Supply Chains 9 Business Systems and Processes 10. Stakeholder Relationships and Alliances 11. Organisational and Management 12 Environmental and Social Impacts 13 Risk Factors and Regulatory Compliance 14 Corporate Governance 15 Financials 16 Application of Investment Funds 17 Strategic Action Plan 18 Plan Improvement Appendices: 1. 2. 3. Some Thoughts on Writing this Plan before We Start • Clearly identify the readers of this document. Then write the plan in a style that is easily understood by readers • Remember that this plan is a working document that has the clear purpose of initiating focussed action and generating clear and measurable results. Avoid the excessive use of descriptive adjectives to 'pad' or over-sell the plan. Flowery, highly descriptive language can cloud key issues, blur the plan's focus and slow/confuse its implementation • Keep the plan 'tight'; ensure it remains concise, balanced, clear...
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...Easy Jet and Ryanair; pricing strategies Flying high with low prices Introduction Easy jet and Ryanair and the two largest low cost airlines in Europe, they dominate the industry. They introduce low prices to entice customers; the earlier the customer’s book, the cheaper the price. By introducing these prices, Easy Jet and Ryanair have forced other airlines such as British Airways and Lufthansa to lower their prices. Both airlines have copied the American ‘South West airlines’ business model and introduced it to Europe. Easy Jet and Ryanair are able to provide the low prices by maintaining low costs. They cut costs in areas such as administration. With the online booking system, this saves them thousands of pounds every year. While cutting costs, the service given on board flights is not as good as the superior companies such as British Airways and Virgin Atlantic. It doesn’t have to be, as customers know that with the low prices comes low customer service. And for the cheap prices customers pay to fly with Easy Jet and Ryanair, they don’t mind. Ryanair Ryanair is the leading low cost airline in Europe. Founded in 1985 by the Ryan family they began with one flight and one aircraft flying between Waterford and Gatwick airport. Shortly after, they began flying regularly between Dublin airport and London Stanstead, competing with British Airways. ‘Carrying fewer than 700,000 passengers annually in its early years, the figures grew to 21.4 million years...
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...Compare the operations strategies of Ryanair and a full-service airline such as British Airways or KLM. 2. Low-cost airlines like Ryanair and EasyJet differ from classier bigger companies like the British Airways. There are reasons, why Ryanair is much cheaper than the British Airways. Main difference is the service itself. British Airways offers everything with a wider variety, and everything a little better. The seats are bigger, with more legroom, there is a wide menu available including special orders considering kosher, vegetarian, or any kind of allergies. You get better baggage limitations, are allowed to take wider variety of special equipment with you (some need to be declared). The baggage care is also better, low cost companies frequently mess with you luggage throwing the bags around far from a neat manner. The destinations and flight schedules are also much less and less flexible in low-costs. But there is a difference like these for a reason. The low costs like Ryanair have their segment – people who don’t really care that much about the service and the flight meal. Such people just want to reach the destination and are not willing to pay twice as much for a classier service. Both types of companies reach their segments. Ferrari vs Renault Clio 3. The main thing is they both meet up the expectations. A Ferrari is a car which you dream about. Every little teenage boy would look at the poster of a Ferrari and says, when I grow up, I’ll buy one for myself. No one...
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...Ryanair – the low-fares airlines Case Study By Sid Hegde Ryanair – the low-fares airline Table of Contents Q1. Why ha s Ryanair been successful thus far? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Q2. Is Ryanair's strategy sustainable? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Q3. Would you recommend any changes to Ryanair's approach? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Q4. Should Ryanair continue to pursue the Aer Lingus bid? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Q5. Evaluate the strategic leadership of Michael O'Leary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Appendix . . . . . . . . . . ...
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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 were...
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...Ryanair’s implementation of low cost strategy………..6 Recommendations………………………………………….6 Conclusion…………………………………………………...7 Reference List……………………………………………….7 Appendix………………………………....…………………..8 12.1 Presentation’s slides…………………………………8 Word count 1,744 (excluding reference list and appendix) 2 Besmir Lika 1.0 Introduction Strategic Management Individual Report Richard Jump The notion of underlying the concept of generic strategies is that competitive advantage is at the heart of any strategy, and achieving competitive advantage requires a firm to make a choice, if a firm is to attain competitive advantage, it must make a choice about the type of competitive advantage it seeks to attain and the scope within which it will attain it (Porter, 2004). The purpose of this report is to assess the key strategies chosen by Ryanair within cost leadership and that were likely to generate competitive advantages to the organisation. Furthermore, this paper will analyse the Ryanair’s decision to become a low cost airline through Porter’s five forces. It will help to understand the industry attractiveness and competitive forces. PEST analyses will be directed in order to analyse the business environment where Ryanair operates. SWOT analyses will be piloted to diagnose the strategic capabilities of Ryanair. Porter’s five forces will explain the strategic choice made by Ryanair. VRIO frame work deeply diagnoses the strategic capabilities of Ryanair, it evaluates and explains the reasons...
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...To what extent has Ryanair met the critical success factors for the sector in the last five years? 1. Loyalty: The most important factor for being successful in service industry is loyalty. Quality of service, communication with the current and potential clients as well as promos and discounts can help airline companies to attract more travelers. As Ryanair is a low-cost airline, they do not invest in any particular loyalty program, like majority of full-cost airlines do. The attitude for the low-cost airlines could be described as ‘you get what you paid for’. Looking for other big companies, it is essential, that a properly working loyalty program needs big investments and proper, continuous management that would essentially increase costs of operation for Ryanair. Despite this fact, during the research it was investigated, as Ryanair is one of the leading European low-cost airlines, it already has a base of loyal customers, mostly because of simplicity (a lot of destinations offered, cheap prices, and relatively new aircrafts). 2. Access: Airports are usually out of the cities. Passengers are spending a lot of time in traffic jams on the way to and from the airport. In addition, passengers are spending a lot of time in the airport, as usually they must check-in in advance. Reducing advance time and developing transportation can reduce the overall time of the trip. Access factor for Ryanair a is topic for discussion, as majority of airports they operate in are very far from...
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...Ryanair – the low-fares airlines Case Study By Sid Hegde Ryanair – the low-fares airline Table of Contents Q1. Why has Ryanair been successful thus far?..................................................................3 Q2. Is Ryanair's strategy sustainable?..................................................................................4 Q3. Would you recommend any changes to Ryanair's approach?.......................................5 Q4. Should Ryanair continue to pursue the Aer Lingus bid?..............................................6 Q5. Evaluate the strategic leadership of Michael O'Leary..................................................7 Conclusion...........................................................................................................................8 Bibliography........................................................................................................................9 Appendix............................................................................................................................10 A1. PESTEL Analysis...............................................................................................................10 A2. 5-Forces Analysis...............................................................................................................11 A3. Ryanair SWOT Analysis.....................................................................................................12 A4. TOWS Matrix....................
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...pricing strategies is the element of a firm’s decision-making concerned with the setting of process that will attract the target market and allow profit objectives to be met. Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passengers’ airline through continued improvements and expanded offerings of its low-fares services. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. A good pricing strategies had help Ryanair to achieve the objective and aims. Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way 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 charges on flights with higher levels of demand for bookings made nearer to the date of departure. Ryanair’s tight cost control was the backbone of its low-price strategy. As a result of this cost focus, Ryanair had by far the lowest costs in Europe, about 40% lower than its closest competitors. One of the elements of Ryanair’s cost-control strategy is the...
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...Chain and Logistics Management. Module: Module 2 – Strategy, Logistics and Marketing. Essay: What is Strategy? Date: 1st May 2012. Contents: Page. 1.0 Summary. 1 2.0 Introduction. 1 3.0 The Principles of Lean. 2 3.0.1. Understanding your customers’ requirements or value. 3.0.2. Identify the value stream 3.0.3. Make the value flow through the value stream 3.0.4. Pull the value from the value stream. 3.0.5. Strive for perfection. 3.0.6. The ten rules of lean production. 4.0 The Tools of Lean. 4 4.0.1. Kaizen. 4.0.2. Jidoka. 4.0.3. JIT or Just In Time. 4.0.4. Heijunka. 5.0 Recommendations. 6 6.0 Conclusions. 6 7.0 Bibliography. 7 8.0 Web links. 7 1.0 Summary. In this exercise I have tried to convey the meaning and value of strategy and its importance while constructing a strategic analysis using SWOT, STEP and Porter’s 5 forces. I have also used Porter’s generic strategies model to establish what business we want to be in and have articulated this business model in a vision and mission statement. The target company’s I have used in my exercise is predominantly Ryanair plc. 2.0 Introduction. What is strategy? The term strategy is a military concept and comes from the ancient Greek word “strategia” meaning “office of the general “ or “generalship”. Many of the concepts of strategy have been borrowed from the military and adapted for...
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