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Pricing Strategy for Ryanair Essay - 2075 Words

A company can base its corporate strategy on value derived by the customer from the organizations product by ensuring that customer value is maximized as put in Legace (2004). Ryanair has brought revolution to the air line industry by introducing budget airlines that have accorded ordinary airline passengers the luxury of travelling to Europe and enjoying weekend getaways at reasonably low prices. This strategy perspective by Ryan air is

Essay UK, Strategic management: ryanair.

Assignment Tasks
Carry out the following tasks in a max. 5000-word typewritten individual report. The aim of this report is to choose one of the low-fare airline (Easyjet/Ryanair/Flybe) and advise the management about entering new international markets, by proposing a 5-year internationalisation strategy (for 2013-2018).

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The European airline industry has been affected by the global economic recession and high oil prices. This has greatly affected the purchasing power of consumer’s world wide. Ryanair has adopted a low cost strategy that enables ordinary airline passengers to travel outside Europe and engage in weekend getaway despite the economic crunch. This has enhanced Ryanair’s survival in the industry by positioning its services to suit consumer needs.

The airlines low cost strategy is dependent on its ability to operate on low cost budget. Ryan air achieves this by ensuring that all its internal processes are operated in a manner that results in cost reduction. For example it uses a one aircraft type to reduce maintenance and repurchase cost associated with using a variety of air crafts, it contracts its ticketing and baggage handling services, ensure staff cost are reduced by pegging them on productivity and also closely motors its marketing and promotional cost.

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Ryanair's Marketing Environment and Strategy Essays

As argued in Karder et al. (2005, p.136) another concept in the unified theory is brand concept activation. This is achieved by ensuring that your brand reputation is constantly communicated on an international platform. Brand reputation relates to the established brand personality and identity as put in Kapferer (2008, p. 187). Ryanair will need to reinvent the brand personality to suit the international consumer and brand identity to incorporate the global culture. To be able to spread its brand reputation Ryan air will need to expand its promotional and marketing strategy to be able to reach the global consumer as put in Gelder (2003, p. 3). This can be achieved through use promotional media that is accessible to the global community by use of media such as the internet.

Ryanair the lowest cost carrier in Europe wants to continue growing but still be in a position to operate profitably despite the harsh economic conditions worldwide. This can be achieved by adopting a global strategy. The strategy will help the airline to grow and expand its business outside Europe.

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Strategy Clock Of Ryanair Free Essays - StudyMode

Cost measures evaluate an organizations ability to operate profitably at low cost as put in Legace (2004). Ryan air adopted a low cost strategy that offered its customers low fares. This is based on the assumption that customers were only interested in travelling as fast as possible at the low fares. Low fares will help stimulate demand for the airline which will enable it to operate profitably and maintain its position as the leading low fare airline in Europe. The low fares are achieved through ensuring that Ryanair operates at low cost by eliminating non essential services and maintaining low cost of operation.

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Produce a report which identifies the internal resources and capabilities that reside within Ryanair, using evidence to support your points. Do these provide a better explanation of its profitability and performance than an explanation which says that Ryanair has successfully applied a generic low cost strategy, according to Michael Porter’s framework.
You will need to illustrate your answer with some data and trends from 2004 to the present and demonstrate skills of accessing, selecting and using evidence to make your points.

17/09/2017 The Strategies of Ryanair UKESSAYS

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Question 2: [max. 3000 words]
On the basis of the strategic analysis and market selection carried out in Question 1, formulate market entry strategies for your chosen markets for Easyjet/Ryanair/Flybe, consisting of recommendations for:
a) Entry-mode strategies and exit strategies for selected country markets.
b) Functional strategies, including product, marketing, and operations decisions.
c) An organisational structure for the implementation of the above strategies.
d) A strategic control system for managing the implementation of the above strategies.
Justify your recommendations with fully referenced research evidence derived from the analysis and evaluation of information from your individual and action learning set research, as well as with logical arguments using appropriate theories.
The assignment is an individual report that builds on the research and analysis discussed in the Assignment Learning Activity (ALS) sessions. You are required to write this report individually; however you are allowed to build on the material and ideas that emerged from the collaborative work of your ALS.
The assignment focuses on the fulfilment of following Intended Learning Outcomes:
1 Identify, select and apply appropriate strategic frameworks, models or concepts for the analysis and development of international and/or global strategies for a specific
organization;
2 Demonstrate knowledge of research on contemporary globalization issues;
3 Critically evaluate and apply frameworks for strategic analysis, strategy
selection/formation and strategy formation.

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