Get Full Essay Get access to this section to get all help you need with your essay and educational issues. This route was one of the most traveled air routes inEurope, which meant that Ryanair was taking a big risk by deciding to enter this market. At the moment the airline passenger market was a complex one, since the governments would highly control it.
Industry Life Cycle Figure 3: Ansoff Matrix Figure 7: Basic figures of Ryanair and UK competitors Table 2: Service performance and average fees of Ryanair and UK competitors Table 5: Price comparison Ryanair and train services Table 6: Competitive factors in the airline industry Table 7: For example, it takes into account recent global incidents, such as the volcanic eruption in Island or the public turmoil in Libya.
In particular, this part deals with strategic human resource management, corporate social responsibility, lean thinking and diversification.
Due to the complexity of the aspects covered in this report and the need to clarify some of them more comprehensively, appendices are provided to promote understanding.
A more detailed analysis of the low-cost airline industry can be found in the appendices on page The high fixed costs for operating scheduled flights necessitate a relatively high passenger number to at least break even. In fact, seats which are not sold today are virtually worthless tomorrow.
Airlines have attempted to improve their processes as well as provide excellent customer service in order to gain competitive edge. Table 1 shows that Ryanair ranks on top in terms of passenger numbers and profit compared to its UK rivals.
More detailed information can be found in the appendices on pages Basic figures of Ryanair and UK competitors Source: Company annual reportswebsites. Abbildung in dieser Leseprobe nicht enthalten 4. Ryanair has markedly tailored its activities to be more efficient than any other rival.
In order to succeed as a low-cost carrier it is of paramount importance to develop the critical resources needed in order to gain profits and outpace competitors. A single modern fleet entails cost-advantages with regard to operations, staff training, maintenance as well as purchase and storage of spare parts.
Likewise, flexibility in terms of staff scheduling and equipment handling significantly increases.
In this regard it adheres to the highest European standards Ryanair, Labour costs are controlled by continually improving the productivity of employees through performance-based pay incentives. Ryanair, ; Ryanair, It is worth mentioning that employees are expected to pay for trainings, uniforms, meals and drinks and even mobile phones used at work BBC, a.
Ryanair flies direct non-stop short-haul, single-class routes and favours secondary less congested airports that ensure lower handling costs, fewer delays and faster turnaround times to increase aircraft utilization.
These, for example, encompass on-board sales of food, drinks or merchandise as well as the sale of products and services of strategic partners including public transport, car rental, accommodation and insurance. In addition, Ryanair sells advertising space on its planes and charges high fees for services such physical check-in, excess baggage, hotline calls and ticket cancellation.
Table 3 shows that Ryanair has the highest prices for in-flight food and drinks compared with competitors. It enabled Ryanair to reduce costs through process automation and disintermediation as customers are now obliged to book tickets and check-in online.
Tickets are sold at discount prices months before the actual flight. Prices then increase depending on demand and the time between the booking and the flight. If a capacity target cannot be reached discounts are offered to increase demand.
A ticket price comparison can be found in the appendices on page It is worth noting that many key value chain activities are outsourced to third-parties in order to significantly increase cost-efficiency, whereas Ryanair favours fixed-prices, hedging and multi-year contracts. This, for example, includes employee training and aircraft maintenance Ryanair, Ryanair Marketing Mix.
Aer Lingus to vote on board pay – BBC News Online – 5th June Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only. Published by. Ryanair Case Study Analysis.
1. Strategy of Ryanair Overview of the Company from the story of David and Goliath the company go after the big guys for a slice of the action and end up smashing the Aer Lingus or British Airways high fare cartel on the Dublin-London route. The staff increased from mere 57 to staff members and the plane.
Ryanair case study Source: Johnson and Scholes 8th edition Page 14 RYANAIR - THE LOW-FARES AIRLINE 1 Companies UK, 'Ryanair sets its cap at local rival Aer Lingus.
2 Commission Decision of 27/06/ declaring a concentration to be incompatible with the common market and the EEA Agreement (Case No COMP/M – Ryanair / Aer Lingus). Ryanair Case Study. Uploaded by. Stakeholder analysis on Ryanair’s bid for Aer Lingus The stakeholder analysis clearly shows the opposition to Ryanair’s bid for Aer Lingus.
The chances of the key stake-holders changing their mind agreeing to a merger are quite low.
But, it is recommended that Ryanair hold on to it's current shares in Aer Lingus as it would be a good buffer against a possible take over of Aer Lingus by one of it's rivals like Easy Jet. Ìf the financial struggles at Aer Lingus continues and it keeps loosing money then Ryanair can. Dogfight over Europe: Ryanair (A) Case Solution. They are expected to become the toughest competitors of the Ryanair after it is launched on the same route as they are government owned company, therefore the losses or decrease in profit would not affect them as much as the others in . We will write a custom essay sample on Case Study: Ryanair specifically for you for only $ $/page. especially for Aer Lingus. But then Ryanair appeared and, as we know, the entry of a new competitor represents an entry price below the market’s price. Ryanair Case Study Questions ; Ryanair and easyJet Case Study ; Ryanair.
Aer Lingus is the national airline of Ireland, operating 63 aircraft on routes to destinations in the UK, Europe, and North America, carrying 12 million guests annually. As Ireland’s only 4-Star airline, its mission is to connect Ireland to the world and to become the .