Ryanair can lose their lead in competition because of lack of advertising. With their growing fleet and number of flights the competitive rivalry is low. 2.3 Strategy of Ryanair 2.3.1 Low Fares Ryanair sets their fares depending on demand on a particular flight and also by outstanding time before departure. If it is closer to the departure date the fare will rise due there will be a higher demand for it. Also Ryanair sets the low fares to stimulate the demand of their service.
1. Situation Analysis a) Company History Air Asia is an ease aerial shuttle organization which was secured in 1993 with its headquarter in Malaysia and found by Tony Fernandes in 2001. The organization has been developing and changing a ton with the title of 'World's Best Low Cost Airline' in the yearly world carrier study by Skytrax for consistent 5 years. Presently they flight 25 nations and 78 goals with partner organizations Thai Air Asia, Air Asia X, Philippines Air Asia Inc and Indonesia Air Asia Philippines Air Asia Inc. Air Asia X was secured in 2007 which flies long separation with ease by decreasing complex code imparting and additional costs for superfluous administrations. They continue putting endeavors to give both sensible cost
Ryanair could target fare-conscious leisure and business travelers who might prefer a substitute form of transportation by charging lower fares. 2. Low cost Ryanair could provide low cost in its operation by using a single model of aircraft. It allows for minimisation of training and maintenance costs, efficient management of spare parts inventory and more flexible scheduling of flight crews. Since Ryanair purchase a large number of aircraft from Boeing, they can negotiate
An airline company must make sure that the services provided don’t have any substitutes in the market. This is because the passenger will tend to go for the airlines company that offer lower price and high quality provided by the airlines services. In the market, there are a lot of competitors that provide a lower total cost of a trip that the passengers can grab compared to what Ryanair Holdings had offer. This is because, even though this airlines company offer low cost, eventually the price would still be expensive due to the additional cost for the services that are supposedly included in the ticket price such as online travel cot and golf clubs. There are also cost that are irrelevant to be charged to the passenger such as delay or cancellation fees that make the substitution are readily in the market because other airlines company are not charging their passenger with this kind of costs.
3. Global Marketing and Supply In terms of prices, Air Asia offered cheapest prices as it is affordable for all level of income. At the same time, they also provide comfortable flying experiences. The customer can book the tickets through online. Then, the company provided a different self check in styles in order to ease the process done by the customers.
2. Low fares For Ryanair, on a profitable basis, smaller costs facilitates to smaller fares. The average pricing at Ryanair is lower than any of its counter parts in Europe. Even after the inclusion of extra amenities like baggage costs, seat booking, on-board purchases and travel insurance, Ryanair 's revenue per passenger is lesser when compared to the other contenders in the European market. 3.
Another marketing strategy of Apple is creating an experience for their customers. Apple does this by having interactive stores. In all Apple stores, there are interactive devices that customers can use. This gives customers a feel for what new features are on a new device. Having interactive devices makes people remember going to an Apple store more than if there were no devices.
Centre for Aviation. (2014). Ryanair: Europe 's most profitable airline "not cheap and nasty". FY target raised after strong 2Q. Available at: http://centreforaviation.com/analysis/ryanair-europes-most-profitable-airline-not-cheap-and-nasty-fy-target-raised-after-strong-2q-194608.
Market Trends Past Before Ryanair was formed in 1985, Aer Lingus was the main airline in Ireland. However, since Ryanair restructured and re-launched as a low-cost carrier in 1991, competition has risen substantially. It took many years for Ryanair to catch up with Aer Lingus, but during the late 1990s and early 2000s, Ryanair achieved a compound annual traffic growth rate of 30.5%, which significantly threatened Aer Lingus’s profit and growth margins. However, Aer Lingus’s structural reformation into a low fare airline caused Ryanair’s profits to fall by 20% in 2003. Aer Lingus was losing approximately 2.5 million euros a day, with passenger numbers having fallen by 4.6% over the previous year (O’Connell and Williams, 2005).