Introducing
Prezi AI.
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
Loading content…
Loading…
Generic Strategies - Airline Industry
504
Transcript
Who's Wining?
Revenue Breakdown
Total Revenue €m
Functional Air Travel
Ryanair‘s Low-Cost Strategy
Cost Leadership Strategy
Some Facts.....
"To be the world’s leading global premium airline”
- Lower cost structure
- Sell goods or services cheaper than competitors
- Functional strategies
- Competitive strategies
- Set up 1985 by the Ryan Family
- Operating more than 1,600 daily flights (over 500,000 per year)
- Across 1,600 low fare routes
- Connecting 180 destinations in 29 countries
- Average fare €48 (incl. bag)
- Standardised Fleet
- Secondary Airports
- Internet booking & check-in
- Limited spend on advertising
- Quick turnaround
- Revenue from ancillary services
Introduction
The UK’s largest International Airline and one of the world’s leading global Airline
Principal place of business is in London, with significant presence at Heathrow, Gatwick and London City Airports.
Vision: To be the most admired airline across the world’s key cities
BA flies to more than 400 destinations worldwide.
Operating Expenses €M
Breakdown of expenses
Constance Doyle
Nicola Fisher
Sophie Harkin
Ciara Jones
What's next?
Ryanair Destinations
Remove toilets in order to create extra seats
Standing - only plane
Eliminating a co-pilot
Destinations
Expenses as % of Revenue
Agenda
Differentiation Strategy
Travel Classes
1) Porter's Generic Strategies and Airline Industry
2) Low Cost Strategy - Ryanair
3) Differentiation Strategy - BA
4) Who's winning?
Basis for Differentiation
A value added, differentiated service that customers want, which provides a basis for premium prices.
Orchestrating a high quality service to fill customer’s value-driven needs is their basis of differentiation.
Tries to make the experience of flying as effortless as possible.
Staff attend customer service training programmes
Introduction of fast track check in
Cabin crew are highly visible
Different products/services for different customer segments
Strategy is employed to increase the perceived value of a brand or products as a way to entice buyers to choose their products over similar products offered by their competitors
Depends on industry
Typically involves: features, functionality, prestige, reliability and brand image
Successful strategy?
Strategy Objectives
Passenger Load
Operating Profit €M
- Low Fares to stimulate demand
- Best Customer Service
- Frequent Point-to-Point Flights on Short-Haul Routes
- Keep costs low
- Enhancement of operating results through Ancillary Services
Today. Tomorrow.
Strategy and Objectives
Ryanair's Business Model
Clear Winners?
How much do you think you really pay?
The Big Picture : Airline Industry Overview
Michael Porters Generic Strategies
Factors affecting the airline industry
• 9/11
• Taxes
• Recession
• Fuel prices
Industry Players : Legacy Airlines Vs Low Cost Airlines
Fuel Prices
Fuel Prices Impact on Operating Costs
Thank You!
Any Questions
Strategic Positioning: Airline Industry
Monday 14th September 2013
Choose a template
Presentations from around the world
Learn more about creating dynamic, engaging presentations with Prezi