In this paper we will analyze the airline sector using various theories and tools to examine it. As part of our strategic focus, we will first study the overall market and then, by using the example of Ryanair, look at the features of a low cost airline.
The passengers of the airline industry can be segmented based on the type of passengers (business or leisure) and in terms of distance (medium or long haul).
This analysis highlights the factors that are essential for their success, these include:
- Cost control: A factor that is essential for generating margins and will be beneficial.
- Lobbying to the state and the CAA shortage to fix the problem of place in airports.
- Expansion will result in more reservations for customers and the development of internet bookings.
The main stakeholders are:
Traditional airlines,
The low cost airlines
Aircraft Industries
Airports,
The airline catering companies,
The central booking flights.
The term 'Low-Cost' is an English expression that is used to refer to airlines whose prices are very low. They are able to sell tickets at low prices thanks to a rigorous policy of low costs, planning activities as early as possible and the maximum use (or elimination) of benefits that are traditionally performed by employees.(Glossary Definition Marketing, Business & MD)
Tags: business strategy of low cost airlines; Ryanair, analysis of strategy
[...] Therefore, the outsource part of their number of destinations is business. limited. OPPORTUNITIES THREATS Development of online - Fear of terrorism. sales and reservations (lower - Development of management fees). low-cost airlines (eventually Alliances and mergers/ will be 30% of the market share acquisition of other airlines and is a threat to national (cost control) companies). Failure of some - Increased cost airlines (redistribution of market (higher price of oil). share for other companies) Correlation between air traffic The Business Class and and economic conditions. frequent flyer program. [...]
[...] Problem of finding new customers. External market analysis of national airlines This analysis highlights the factors that are essential for their success, these include: - Cost control: A factor that is essential for generating margins and will be beneficial. - Lobbying to the state and the CAA shortage to fix the problem of place in airports. - Expansion will result in more reservations for customers and the development of internet bookings. The main stakeholders are: ¬ Traditional airlines, ¬ The low cost airlines ¬ Aircraft Industries ¬ Airports, ¬ The airline catering companies, ¬ The central booking flights. [...]
[...] -The low-cost offers only secondary zones. Substitutes: (Medium) -At the national level- High Car, fast trains, video-conferencing, telephone - Internationally - Low Despite the video-conferences, the planes remain the primary mode of transport to attend meetings in other places. New entrants: (Low) ⎫ High investment ⎫ Cost of expensive location Bargaining power of suppliers: (High) ⎫ 2 suppliers - Boeing & Airbus ⎫ High cost of transfer. Restructuring (pilot s,mechanism etc.) ⎫ Fuel Prices Competitive intensity: (High) ⎫ Airlines can be easily imitated. [...]
[...] Question How can the low-cost airlines create added-value with strategic positioning? The term ‘Low-Cost' is an English expression that is used to refer to airlines whose prices are very low. They are able to sell tickets at low prices thanks to a rigorous policy of low costs, planning activities as early as possible and the maximum use (or elimination) of benefits that are traditionally performed by employees.(Glossary Definition Marketing, Business & MD) External analysis of the low-cost airline sector OPPORTUNITIES THREATS Market shares of - Dependence on oil low-cost companies increase. [...]
[...] National airlines and low-cost airlines. airlines + national Width range - low cost companies - vertical integration + Vertical integration Width range The airlines have agencies Creating international such as ‘Opodo voyagesge'. platforms or ("Forums"), the National Coupled with the performance large number of planes and Airlines of their computer multiple international reservation systems, agreements allow optimal airlines have an extensive geographical coverage. distribution network. Their strength lies in the Low-cost airlines have only low costs that the company low-capacity aircraft and did Low cost offers. [...]
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