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Date Submitted: 02/23/2011 08:29 PM
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Ryanair – Flying High at Ryanair |
Assignment #1 - MGMT 420 Strategic Management, Spring, 2011 |
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WRITTEN BY: Deborah Hill
Date: January 27, 2011
Table of Contents
The benefits and weaknesses of low cost airlines… 3
General 4
Demographic Segment: 4
Projected Population in 2020 6
Economic Segment 7
Political/Legal Segment 9
Sociocultural Segment 9
Technological Segment 9
Global Segment 10
Industry 11
Porter’s Five Forces 11
Core Competencies 14
Porter’s Value Chain 16
Annex A – Map of European Union 17
Bibliography 18
Introduction
The benefits and weaknesses of low cost airlines…
The purpose of this report is to provide an external and internal analysis on low-cost airlines based on the Ryanair Company, the case study provide and my research of the low cost airline industries. Typically low cost airlines fly to smaller cities or secondary airports, where landing fees are lower and where fewer airlines compete for landing slots. Large airports often operate at maximum capacity that lead to delays and canceled flights, where smaller regional airports still have room for additional flights, which many low-cost airlines take advantage of. However, low-cost airline travelers need to be flexible and willing to consider secondary airports or smaller cities as a destination. Other travel issues faced by those who use low-cost carriers low-cost carriers are that they usually offer only one passenger class and often have no assigned seating. Many times tickets from low-cost airlines are non-refundable and flight dates often cannot be changed.
To save cost and make extra money, low-cost airlines charge for food or drinks, and typically baggage and weight allowance to be very low, or charge for every checked bag. Airport taxes, fees, and fuel surcharges are often listed separately from the low advertised fare. Many low-cost airlines sell their tickets almost exclusively online, and few travel agents are...