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 of the low cost airline and includes the following:
Cost containment realized through spending as little money possible for advertising with all marketing identified as 'in-house' marketing to customers to increase turnover;
Cost containment realized through turning the costs of food and drinks on a flight into a revenue stream through making drinks and a selection of food available at a reasonable price;
Cost containment realized through creating additional revenue through such as car rental, travel insurance and travel reservation services;
Cost containment realized through exploiting the lack of provision of airport air bridges;
Cost containment realized through enforcing strict policy that is a 'no refunds' policy;
Cost containment realized through maintaining a homogenous fleet that results in maintenance efficiency and lowers pilot/employee training costs;
Cost containment realized through not selling tickets for connecting flights; and Cost containment realized through primarily flying to secondary airports offering lower landing and handling fees. (Ryanair, 2009)
C. Ryanair -- SWOT Analysis (Strengths, Weaknesses,
Opportunities & Threats)
This strategic plan addresses the following key strengths, weaknesses, threats and opportunities which apply to Ryanair Airlines now and in the foreseeable future:
1. Strengths
Low cost leader
Innovative cost reduction
First- mover advantage
Established market share
Substantial growth
High load factor
Established image
Established routes / network
Major earning from innovative ancillary scheme
Single model of aircraft reducing training, maintenance and supervisory costs
High turnarounds resulting in maximum aircraft utilization
100% e-tailing eliminating intermediaries and distribution costs
Lowest labour costs due to non-unionized labour forces....
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