ipl-logo

Business Strategy Case Study: Ryanair

1067 Words5 Pages

1. Low fares
Ryanair becomes Europe’s leading scheduled passenger airline that offers low fares compared to the other competitors. Ryanair’s average fares are lowest than the average short-haul fares of other competitors in Europe. There is no fuel surcharge imposed on any fare. 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 …show more content…

Moreover, flights are booked one way only and the passengers’ must check-in online 15 days before departure time. Boarding pass must be printed and presented at boarding. It makes the process easier and quick so that the passengers do not have to long queue.

Weakness
1. Misleading advertisement
Ryanair has been accused of providing misleading advertisement relating to its statement “fair dealing”. They also have made exaggerated claims about the availability of flights at advertised prices which not include taxes and fees. For example they claimed that its flight from London to Brussels was faster and cheaper than travelling by Eurostar train, used a model in schoolgirl-style clothes with headline “hottest back to school fares” and played down the effect of aviation on the environment by claiming that the industry accounts for just 2 percent of carbon dioxide emissions.

2. Bad customer service
There has been claimed on customer services provided by Ryanair on European airline and cancellations, missing bags and denied boarding. Even, the new CEO O’Leary suggests that Ryanair’s customer services are poor. It is because they too focus on reducing the cost until they neglect to serve their customers …show more content…

Charter flights are offered by low fare as well as offer schedule services that might be a big competitor to Ryanair. Even though Ryanair has lowest fares but in the survey by The Telegraph, it is shown that cost of a flight on a low-cost carrier can escalate when all fees added. Thus, it makes the price of the traditional flight such as British Airways become more

Show More
Related

  • Swot Analysis Of Air Canada

    1235 Words  | 5 Pages

    The competition between Air Canada, a traditional carrier, and West Jet, low cost carrier is rigorous in Canadian airline industry. Though Air Canada is Canada’s domestic and international airline and has dominant hold in the Canadian market, West jet is giving the airline tough competition with its effective price point, profitable routes with greater focus on domestic market. The rivalry competition is moderate to

    Read More

  • Economic Factors Affecting Qantas

    315 Words  | 2 Pages

    This article concerns various elements of the economic environment and their impact upon Qantas, such as significantly lower fuel prices. Representing its largest cost, lower oil prices as a result of oversupply and lack of demand have reduced Qantas’ fuel costs by $597 million since the previous year (O’Sullivan 2015a). Another contributing economic factor has been the Abbott government’s repeal of the carbon tax as part of its fiscal policy, which is said to have boosted Qantas’ pre tax earnings by $116 million (O’Sullivan 2015b). This article further relates to the economic environment as it discusses the impact of the falling value of the Australian dollar on Qantas. Its 25% decline since mid-2014 has encouraged Australian residents to

    Read More

  • Nt1330 Unit 3 Essay

    573 Words  | 3 Pages

    This part is very important because every that airline, who is connected to our system would be shown on our website and we must have access to those airlines’ database, because database is very important in our case, we must have all the information about that airline. Because when a client will ask about information of a specific flight and if we have access to that database, only in this case we would be able to inform the client.  Ticket Reservation This module will allow the client to search of a specific flight, choose flight, details, confirmations, cancellations etc. 

    Read More

  • United Airlines Market Segmentation

    1027 Words  | 5 Pages

    Quality vacationers: These customers treat the travel as a part of their holiday experience and therefore they fly with carriers that provide extremely superior services. Frugal flyers: These types of customers tend to seek out the lowest-cost carriers for economic reasons, but still expect their flight experience to be a good

    Read More

  • Transnational Strategy Of Lufthansa

    1545 Words  | 7 Pages

    For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory

    Read More

  • Aviation Value Chain Analysis

    1601 Words  | 7 Pages

    1.1. The aviation value chain The value chain shown below describes all the activities involved in air travel. Airports serve as a gateway to aviation and hence are a key link in the air transport value chain. They play a vital role in facilitating tourism and business travel and global supply chains as well.

    Read More

  • Ritz Carlton Business Analysis

    840 Words  | 4 Pages

    Specify organisational standards of customer service So the customer segment of the Ritz-Carlton is a wealthy clientele who has very high expectations since they use to get upscale products because they are ready to pay more to have more. Therefore, the differentiation of the Ritz-Carlton is made on an efficient and effective customer service. As we know the needs are general but the wants are specific, so the companies have to make the difference so as to become the customer’s wants. For example, customers will need to book an hotel room but some customers will want to book an Ritz-Carlton hotel room.

    Read More

  • Jetblue Airways Swot Analysis Essay

    801 Words  | 4 Pages

    Executive Summary JetBlue Airways is a company that applies innovative technologies to offer high quality travel services at a lower cost (Shrivastava, 2012). A SWOT analysis of JetBlue airlines shows that despite the numerous opportunities and strengths it has, it is exposed to threats and weaknesses that pose challenges in its operations. The threats include issues like strong competition from other airlines and the volatility of the fuel prices. JetBlue Airlines is relatively new to the market when compared to its major competitors such as the Southwest and Delta Airlines. Most of its strategies have worked to its benefit.

    Read More

  • The Pros And Cons Of Ryanair

    1339 Words  | 6 Pages

    During the 2011, Ryanair have decided to decrease the airfare rate as a lower cost airline, but the controversy started when they started charging passengers for various reasons that are not necessary. The passengers concluded it as the cheaper but not cheerful airline. Ryanair charged extra for the name change on the passengers boarding pass, a boarding pass fees, excessive luggage fees per kilo, credit card use fees of the total amount, a checked musical instrument fees, a reserved seat fees, and the charges for a water bottle that requested by the passengers. Besides that, Ryanair also happened very often in poor customer service, hidden credit card charges, frequent delays the flights, and extra payments for fees or taxes. Nevertheless, the main controversy was caused by the charges where happened inside the cabin of the plane.

    Read More

  • Business Strategy Case Study: Delta Airlines

    742 Words  | 3 Pages

    Delta created its separate subsidiary in response to competitive threat of low-cost airlines. In addition, its subsidiary used pilots of its parent airline with independent decision-making authority. Does song have an effective strategy? Evaluate strategies by using three tests of effectiveness? Low-cost airline: Faster growth of low-cost aviation industry with homogenous service makes this industry fragmented across the United States.

    Read More

  • Strategic Management: Strategies, Deliberate Or Emergent

    3600 Words  | 15 Pages

    With a rise in fuel prices and environmental factors (such as terrorist threats) reducing air travel, airlines continue to struggle. In union environments, where staff (like pilots and flight attendance) is heavily unionized, the industry has not been able to cut their labor costs. New low-cost industry entrants are adding to the pressure the traditional

    Read More

  • Swot Analysis Of Philippine Airlines

    980 Words  | 4 Pages

    > Founded in 1941 and based in Pasay City, The Philippine Airlines is the country 's ultimate flag carrier and oldest airlines. The monopolization of the airline occurred in 1995 when Lucio Tan, an affluent Chinese-Filipino businessman purchased the airline and became its chairman and CEO. . Global competition in the industry > Threat to new entrants: In spite of the low switching costs and the absence of proprietary goods and services, generally speaking, there is a low threat to new entrants in the airline industry. The huge amount of capital make reprisals against new entrants through a price drop.

    Read More

  • SWOT Analysis Of Flydubai: Low Fist Airlines

    1467 Words  | 6 Pages

    For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive

    Read More

  • Ryanair: The Transformation Process In The Airline Industry

    855 Words  | 4 Pages

    2.0 Inputs - Transformation Process - Outputs 2.1 Inputs Operations management concerns with the conversion of inputs into revenue-creating outputs through the transformation process (Mahadevan, 2010, p.5). Slack et al. (1995 cited in McMahon-Beattie and Yeoman 2004, p.30) mention that inputs are divided in transformed and transforming. Transformed are those that are transformed in some way and transforming inputs are those that are used to carry out the transforming process.

    Read More

  • Essay On Misleading Advertising

    979 Words  | 4 Pages

    Introduction “The term ‘misleading advertisements, is an unlawful action taken by an advertiser, producer, dealer or manufacturer of a specific good or service to erroneously promote their product. Misleading advertising targets to convince customers into buying a product through the conveyance of deceiving or misleading articulations and statements. Misleading advertising is regarded as illegal in the United States and many other countries because the customer is given the indisputable and natural right to be aware and know of what product or service they are buying. As an outcome of this privilege, the consumer base is honored ‘truth in labeling’, which is an exact and reasonable conveyance of essential data to a forthcoming customer.”

    Read More

More about Business Strategy Case Study: Ryanair

Open Document