The internal situation of Ryan Air based on the TOWS analysis highlights its leadership in the low cost strategy which was the result of its cost reductions schemes. The additional revenue from various ancillary services was also a plus. However, the reliance of the…
This antagonism caused criticism from the industry tarnished the image of the organisation (Using TOWS Matrix, 2009; Case Study).
The threat of substitute transportation and the entry of other competitors who could deliver better the gaps that Ryan Air left behind, along with its failure to rectify its weak spots and problematic areas could propel the company to face some serious problems in the future. But then again, the continuous expansion of EU and the burgeoning of the budget sector seeking low cost services provided excellent opportunities for further expansion and rapid growth.
Using Porter’s Five Forces, the rivalry within the industry is very high. This is characterized by the number of competitors servicing the same market within EU with easyJet, AirBerlin, Aer Lingus, FlyBe among others not to mention the long haul carriers (Appendix).
On the other hand, both the threat of potential entrants and the threat of substitutes are within the medium range. Barrier to entry is high because of the low cost strategy but switching cost of the customers is low. Terrorism threat which required stricter rules in airport which resulted to additional inconveniences could drive customers to switch to trains while the rising popularity of low fuel consumption cars posed as substitute threats to airlines with short haul service (Case Study).
The bargaining power of buyers is on the medium scale as switching cost is low. Because of the size of the market, customers could also easily choose which type of service to avail depending on needs and preferences. At the other end, the bargaining power of suppliers’ ranges from medium to high depending on given scenario. It is especially high with regard to fuel suppliers as petroleum prices are dictated by the world market (Hunger and Wheelen, 1996).
Ryan Air’s competitive positioning was based on capturing a segment of the market, focusing on it with a strong ...
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These exposures, i.e. Transactional, Operational and Translational Exposures are presented as follows: Transactional Exposure Availability of Finance / Capital Raising Sources Apart from fuel costs related risks, the company aims at expanding its existing fleet size by acquiring new aircrafts; however, any occurrence of an unfavourable event in relation to the availability of the credit could have an unfavourable impact on the company’s ability to generate the required finance for the expansion project and as a result the continued growth of the company may be hampered (Ryan Air 2011, Kevin 2009).
Nonetheless, human resources leaders who happen to be increasingly effective, tend to be primary advisers to the CEO, seeking advice on critical business concerns such as organizational readiness for key business transitions, while, at the same time, preparing the company for the future by means of succession planning, as well as initiatives of leadership development.
Change of policies pertaining to the European Union owing to outbreak of viral epidemics and also rise of terror threat tends to affect its spontaneous flight services in several European regions (Hagele, 2006, p.2). Economic RyanAir’s operation in the European region is held to grow owing to the sustenance and growth of political and economic situation of Europe.
However, after four years the costs for the firm increased rapidly, making it to make losses amounting to ?20 Million and despite the fact that consumers continued to fly with it because its costs were very low, the firm needed some changes during this time, and this could have enabled it to revamp (Ryanair).
These formal expressions emanate from the works of Frederick Winslow Taylor who developed the idea of scientific management. Prior to the introduction of scientific management, employees were provided the flexibility to perform their work at such a speed and quality which they believed were fit for them.
Business firms have realized that they cannot survive without marketing. Marketing plays a significant role in the sustainability of an organization. In this paper, marketing in service industries is discussed (ICFAI Center for Management Research (ICMR)).
This paper highlights these strategies that were taken by Ryanair, and also their resources and capabilities which made them one of the biggest airline industries in Europe. It also identifies the future steps that Ryanair will take in response to the challenges ahead of it.
The main objective of conducting a marketing audit is to identify the potential threats and opportunities that are likely to exist in the external environment of the organisation. With the identification of opportunities and threats, the process of developing
According to the author of the text, the business was set up by Mr. Bernard Ryan and specializes in Building Services Engineering, Sustainable Design, Energy Conservation, and Project Management. Notably, Mr. Ryan is a Building Services Engineer with over nine years experience in both technical and managerial positions.
31 Pages(7750 words)Essay
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