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Low Fares
No Frills
Ancillary Revenue
Ryanairs Stratagems
19 August 2013 3
Issues At Ryanair
Risks & Challenges Fuel Prices Compensation To Passengers Terrorism & Security
Industrial Relations Safety Issues Customer Services
19 August 2013 Extra capacity building would create uncertainty about the success of new routes and locations Vulnerable to rising fuel prices Represents 35 % of the operating costs Regulation by the European Union
Added risks and costs to the industry IR with pilots was fraught Unions were not recognised Poor staff morale
Strengths
Low cost leader Innovative cost reductions 1st mover advantage Established market share Range of ancillary services
Weaknesses
Refused to recognise unions Volatile customer relations Dependence on Michael OLeary Antagonistic relationship with competitors
SWOT Analysis
Opportunities
Further growth Advanced cost reduction EU expansion Tourist destinations
Threats
Increased competition New low cost entrants Alliance/Mergers between competitors Industry criticism Substitute Transportation Cars, Buses Speed Trains
19 August 2013
Continuously concentrates on driving down its costs to offer the lowest fares possible and remain profitable
Offers minimum standards of service and very low prices for point-to-point, short haul flights
Strategic focus of having the lowest prices, being reliable within the marketplace, comfort and service and frequency
Eliminated extras such as in-flight meals, advance seat assignment, free drinks and other services
19 August 2013
European Competitors
easyJet
Greatest rival frequently attacked each other as part of their public relations Different business model- used more centrally located airports Struggled on the profit front
Air Berlin
Business model instead of point to point connections , it offered guaranteed connections via its hubs low fare alliances with Niki
bmibaby
Subsidary of bmi British Midland Leading low cost carriers in the Midlands and Northern England
FlyBE
Short and long haul services On the verge of bankruptcy by 2001 Achieves more than 3 times the short haul passengers eventhough their fares are slightly high Aer Lingus Was offered a bid for a merger with Ryanair
19 August 2013
Features
Original
Customised
Basic
Quality
Excellent
Average
Acceptable
Support
Comprehensive
Standard
Minimal
Availability
Restricted
Selective
Universal
19 August 2013
Reputation
Prestigious
Respected
Functional
10
International Strategy
Low Low
Multidomestic Strategy
High
11
19 August 2013
Suggestions
Expand into central & eastern Europe Continue aggressive acquisition Increase ancillary revenues focus on after-sales Overhaul the customer service Develop the smaller operating bases
Internet ticketing
Convert web traffic into e-commerce & advertising revenues
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