Brand Case

RYANAIR

- PEEST  Technological

o The technological environment does not appear to significantly impact the firm in a negative capacity as the firm appears to be in a cash position that can sustain purchase of new jets to remain competitive.

o Pro:

 Rise of the Internet  Internet booking, Online check-in  reduce its costs effectively and maintain good relationship with customers

 Fuel efficient engines and airframes

 (Security check technologies) ??

o Con:

 Rise of the Internet  impact on the bargaining power of buyers  has increased as it has made it easy for buyers to search the cheapest available fare or best service

 Teleconferencing for business matters  limits the need of face-to-face meetings and therefore less air travels required

* Main purpose in business  low fare airlines like Ryanair are therefore less vulnerable to the potential of videoconferencing as the majority of business travellers use full service airlines

- Porters five forces  Rivalry is High

(1) Rivalry between low fare airlines and full service airlines

o ??

(2) Internal rivalry between low fare airlines

o The LCC market is highly competitive.

o Most cost advantages can be copied immediately.

o Increasing number of entrants are trying to obtain a share of the market for low-price air travel  many of these operate from bases in certain regions of Europe

o First + direct rival: easyJet

 Only ryanair and easyJet have multiple-country bases across Continental Europe as well as the UK and Ireland

 In comparison they are only direct rivals on very few routes  seem to avoid direct rivalry

o Not much differentiation between services. Price is the main differentiating factor

- References

o Johnson, G., Scholes, K., Whittington, R., (2008). Exploring Corporate Strategy: Text & Cases. London: Pearson Education Limited

o Sørensen, T., (2005). An analysis of the European low fare airline industry - with focus on Ryanair. Aarhus: Aarhus School of Business