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Essay

Dogfight Over Europe: Ryanair - Case Study

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Issue:

Business

 

Written by:

Patricia C

 

Date added:

January 12, 2017

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 345

 

Was viewed:

7367 times

 

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Essay content:

In second, his position as late-movers, allowed them to enter in the market with a lower price than its competitors. A lower price is a good strategy to quickly gain market share. Last but not least important, thanks to his father’s money, they had sufficient financial resources to maintain their prices...
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How do you expect Aer Lingus and British Airways to respond? Why? The entry of a new competitor represents an entry price below the market’s price. Aer Lingus and British Airways had two different choices to react: maintaining their current level of prices, or start a price war with Ryanair. But both companies have a significant disadvantage, they have a cost structure very difficult to cut (Staff + Accommodation, ground… + Selling + Handling and catering represents more than 45% of the costs per passenger, approx 90L and they need to add landing fees and oil); also it was too difficult to start an strategy based in differentiation because Ryanair was trying to offer a service of a similar quality to these companies (first-rate customer service)...
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