Brand Case
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RYANAIR
PEEST Technological
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.
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) ??
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
Rivalry between low fare airlines and full service airlines
Internal rivalry between low fare airlines
The LCC market is highly competitive.
Most cost advantages can be copied immediately.
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
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
Not much differentiation between services. Price is the main differentiating factor
References
Johnson, G., Scholes, K., Whittington, R., (2008). Exploring Corporate Strategy: Text & Cases. London: Pearson Education Limited
Sørensen, T., (2005). An analysis of the European low fare airline industry – with focus on Ryanair. Aarhus: Aarhus School of Business