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Ryanair 1990 Essay

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Below is an essay on "Ryanair 1990" from Anti Essays, your source for research papers, essays, and term paper examples.

During its cash crunch in January 1991, Ryanair was faced with the following options: shut down, become a feeder airline for US carriers, mimic Southwest Airlines’ no frills model, or add a high-fare business-class service. To recommend the most strategic option, Ryanair’s environment, management values, organization, and capabilities/resources must be examined.
During the later part of the 1980s, Ryanair competed vigorously, especially through predatory pricing, with other traditional high-cost airlines such as publicly-owned British Airways (gaining the business travelers) and state-owned Aer Lingus (targeting tourists), while adding additional routes and jet aircraft. It had favourable public perception (“heroes”), used creative solutions to bypass government policies (“touch-and-go” service), ran cheeky advertisements to boost its reputation (“Aer Lingus anniversary”), and focused on customer service. Its single unrestricted ticket price meant to be 10% below competitors’ prices was in a price war with the highly diversified Aer Lingus. Also, according to M. O’Leary, Ryanair’s finance director, the company had “no control over money at all”. Hence, despite the increase of passengers and the route separation policy of the Irish government, the company’s poor cost management caused it to lose its money. Nonetheless, three opportunities were present in the environment: the appearance of the internet, the success of Southwest Airlines low-cost model, and the European Community’s liberalization measures deregulating pricing zones, passenger thresholds, and access to airports. These measures along with the price wars have decreased the barriers of entry for new start-ups. Ryanair’s rivalry with Aer Lingus and non-Irish carriers has increased due to the limited market and available routes. Demand has increased as air travel became more affordable to the detriment of rail and ferry services, which were more time consuming. In addition, considering that the European...

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Ryanair 1990. Anti Essays. Retrieved December 19, 2018, from the World Wide Web: http://cassandralynndesignllc.com/free-essays/Ryanair-1990-27417.html