This price strategy seems sustainable for at least a medium period of time. The company can afford this reduced ticket fare due to its continuously increasing number of customers.
However, there are a series of weaknesses that must be taken into consideration. Employee productivity is one of them. U.S. carriers and European carriers of similar size have similar numbers of employees per company. But for European carriers the number of employees per aircraft is double than that in case of U.S. carriers. This means that U.S. employees are able to handle a double number of passengers, therefore having double productivity.
In order to expand its business and increase its success, Ryanair should take advantage of certain opportunities. For example, the company should diversify and increase the number of...
Ryanair Case Analysis Vella, O'Leary, and Kelly (PPS Publications, 2008) Ryanair certainly has had an interesting history and represents an extraordinarily successful company. The company has pioneered the low cost leader strategy and crafted a niche for themselves in the European market in record time. Furthermore the company developed this niche to become the industry leader. Despite the company's success however, the industry is evolving and new challenges are constantly emerging. It
Ryanair Introduction & Recent History Ryanair is a leading discount airline based in Dublin. The company is known for its cost leadership strategy that has included some attention-getting publicity stunt ideas, and some that the company has actually implemented. The company is profitable, earning €544 million in the first half of fiscal 2012 and €400 million in fiscal 2011. The company flies low-cost scheduled flights around Europe and to nearby destinations in
Additionally, the speed offered by the flight, and the regularity of service could draw both tourists and business travelers for whom saving time is of premium importance. The fact that the Ryan family is building their business slowly and focusing primarily on a single route is likely to be of great advantage in terms of creating a strong and secure customer base through high-quality service. Weaknesses As an upstart company, Ryanair
Ryanair, the Dublin-based discount airline, has traditionally earned a poor reputation for customer service, to the point where it finished dead last in a survey of 100 companies as having the worst customer service in Britain (Smith, 2013). The company's response to the survey results was fairly typical of Ryanair's corporate communications strategy: "We surveyed over three million passengers on the Ryanair website last night. Only two of them had
Bargaining power of suppliers Price of aviation fuels is directly related to the cost of oil. Regional airports have little bargaining power as they are heavily dependent on one airline. 4. Bargaining power of customers Customer are price sensitive and switching to another airline is relatively simple 5. Threat of substitutes a. UK -- none b. Europe c. Driving holidays d. High- speed trains e. No loyalty of customers (Ryanair, 2009) B. Ryanair - Value chain analysis Cost-containment is the focus
Financial Appraisal of Ryanair Ryanair's Financial Appraisal In this report we provide an elaborate financial appraisal of Ryanair for a naive investor with no financial expertise. The key conclusions of this report are: - Ryanair has a very strong as well as continuously expanding market position which is enabled by its expansion of its fleet by 40 new aircrafts to a total of 272 as well as the opening of new routes (328) and
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now