In the paper “RyanAir and Its Dominance in the European Low-Cost Airline Market” the author reviews discourse on RyanAir strategy and how it has positioned itself within the market. It is submitted that a review of the way in which RyanAir has managed to position itself…
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To this end, the literature indicates a factor in Ryanair’s success being the ability to continue to innovate in line with Schumpeter’s “creative destruction model” through being the first to enter a high demand niche market with low supply (Page, 2009. Indeed, leading economist Joseph Schumpeter incorporated the term “creative destruction” as a central element of the contemporary capitalist business model; arguing that innovation was the key to business success (Schumpeter, 1942). Schumpeter further argues that internal innovation within a business operational framework produces lower costs, which in turn permits companies to sell products at lower prices, which is referred to as dynamic efficiency (Utterback, J. 1996).
This is particularly evident in relation to the European airline industry particularly as a result of EU initiated deregulation, which intended to remove competition barrier thereby opening the market for exploitation by others. Moreover, the proliferation of different business models, work patterns have meant that the success of the working organization is inherently dependent on greater participation and employee empowerment, through the concept. Furthermore, Hamal and Prahalad argue that a central element of this is the shift in how companies compete with each other, with the underlying basis of competition moving towards “soft” factors such as reputation, service and market placement and positioning. This, in turn, reflects the evolution of the “knowledge-based economy” (Hamal and Prahalad, 1996). From the airline industry perspective, the fall in profits in the current economic downturn and global pressures has clearly created a need to manage costs and flexibility, which in turn creates the need to change the dynamic of the work organization in order for Ryanair to sustain its position (Fageda et al, 2010).
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... check in also greatly improved the efficiency of the airline. The airline charges some money for excess luggage as a way of discouraging passengers to carry heavy loads of goods. This has increased efficiency in the checking system. 5.0 Ryanair’s competitors The budget airline industry in Europe has been growing substantially. The lowcost carriers had 18 % of the market for all European flights in three months which ended 30 September compared to 15 % a year earlier. According to the case study, there were 19 actors in the lowcostairline industry in 2006. On top of that, the airline is also competing against international airlines such as British Airways (BA), Lufthansa and other established companies in the industry. Thus... ?Executive...
...? How can Ryanair maintain itsdominance in the Europeanlow-costairlinemarket? Table of Contents Introduction 4 LowCostAirlinesMarket in UK 5 Macro Environment Analysis of the Industry (PESTLE) 6 The company: an Overview 10 Research Methodology 10 Research Question 10 Research Methods 11 Secondary Data Analysis 12 Competitive Analysis of Ryanair (Porter’s Five Force Analysis) 12 Current Positioning (BCG Matrix) 14 Ansoff Matrix for Current Strategies presently Adopted by the Company 16 Brand Positioning 18 Product...
... is, it needs to keep a watchful eye on the competitive environment it operates in, in order to maintain its success. References Amason, A. C. (2010). Strategic Management: From Theory to Practice. Taylor and Francis. Creaton, S. (2004). Ryanair: How a Small Irish Airline Conquered Europe. Aurum Press. Hoffman, S. (2007). The Low-costAirlineRyanair: Critical Evaluation of the Ryanair Phenomenon and Its Future Prospects with Taking the EuropeanAirline Industry Into Consideration. Taylor and Francis. Jones. (2002). Introduction to Business. Tata McGraw-Hill Education. Mennen, M. (2010). An Analysis of Ryanair’s Corporate Strategy. GRIN Verlag.... can be applied to Ryanair, and its operations in the aviation...
...?How Can RyanAir maintain itsdominance in the Europeanlow-costairlinemarket? Europeanlow-costairlinemarket Table of Contents Introduction 3 2.Brief Overview of RyanAir 4 3.The Market of LowCostAirline in Europe 5 4.The Market Trends and Current Strategies of RyanAir 7 4.1.Ansoff Matrix 7 4.2.Generic Strategy 8 5.Sustainable Competitive Strategies for RyanAir 9...
...- Centralwings: This airline is based in Lodz, Poland. It was established in December 2004 and started operations in February 2005.
Yielding to the LCCs:
Low-cost carriers dominate about one-third of the US market. The recent LCCs run on 60% of the routes. It is a legend that low-cost carriers do not follow any specific income method and simply use verious tools that measure different things. Sabre started planning income management methods for the low-cost model in 2002. Some aspects of the LCC model are making income management even more important (www.atwonline.com)....
..., multi-tier fare pricing and sngle-classs air transportation. Having overtaken EasyJet, Ryanair is now the largest low-cost carrier in Europe In January 2000. (Doganis, 2001) The company offers approximately 475 scheduled flights per day serving 84 locations in 14 EU countries.
9/11, SARS Iraq War
The worldwide commercial aviation has suffered from terrorist attacks of 9/11. The tragedy dramatically decreases the number of passengers and pushed Airline industry facing deterioration in their financial positions. Similarly, impact of SARS and Iraq War reduce willingness of people to travel outside their countries.
The EU policy...
...with itself (O’Connell and Williams, 2005). Even when many Europeanairlines are cutting their staff, the airline keeps hiring and promoting which attests to its commitment to caring for their staff. The firm is renowned for being outspoken on job creation and provision of job security for its members of staff which is based on the belief that grateful employees will always be more effective than a disgruntled and unsecure one. According to a document released on their website, the firm mission an vision for is; to improve the productivity of the already highly productive staff through commissions for booking on-board sales and employee compensation...
...authorities to take legal action against top management of Southwest airlines. Quite unequivocally, the company has history of safe, secure and trouble free travelling but it could not be guaranteed that Southwest might continue offering safe trips in the presence of old aircrafts.
The issue could easily be resolved if strategic planners of Southwest Airlines opt to upgrade the fleet through induction of latest aircrafts of same model produced by same company. Indeed, the British lowcost carrier named Ryanair has also followed this strategy as it included similar aircrafts in its fleet, which not only reduced...
...stakeholders who also deserve lowcosts, but with extra privileges, such as wheelchair use. The management of Ryanair must exercise discretion in responding to its diverse market segments (Rueda-Manzanares et al. 2008: 188). They should not treat their customers the same at all times, because some have special needs too that garner international respect and acknowledgment.
2.3.2 Antagonism against unionisation and union activities. Ryanair is criticised for refusing to recognise unions and providing poor working conditions (Higgins 2007: 6). For instance, Ryanair appealed to the Irish Supreme Court over a former ruling...
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