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Ryanair
-Raman Kumar
-Ratna Bhatnagar
-Ravi Shekhar
-Ravi Shreshtha
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The beginning
Fight to survive Restyling
Shareholding pattern IPO
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No frills service strategy
Eliminating non-essential extras
Vigorous but steady growth ambitions
Ryanair generation
Frequency & punctuality
Ryanair: An Overview
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Financial statements recorded in Euro
Foreign exchange hedging
Fuel risk management
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13th Consecutive year of increased profitability
Staff efficiency ratio had improved by 15%. Market capitalization 4.73bn till 1st July 2003
Year 2003 (in m) 2002 (in m)
Total revenue 843 624
Total Op Expenses 579 461Operating Profit 264 163
Net Profit 239 150
Net Margin 28.4% 24%
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Declared itself No.1 for customer Service.
Claimed to be No.1 for
Punctuality,
Fewest cancellation,
Fewest lost bags,
Fewest complaints.
Lowest fares of all time on all routes Strive to deliver on-time performance
Allow flight and name changes with requisite fee
Provide complaint response within 7 days
Provide monthly service statistics
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Completed its deal to purchase buzz from KLM Royal DutchAirlines on 10thApril 2003.
The Irish-based airline has purchased the unit for 20.1m,reduced from 23.9m.
Ryanair acquired ten of buzz's fleet, a total of six Boeing 737-300s and four BAe 146s, and also retained up to 170 buzzemployees.
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Fleet commonality
Contracting out of service
Airport charges
Staff costs and productivity
Marketing costs
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EAI
9/11 shock
NewAirline Era
EAI Air ravel Dyna ics oves y ainstrea arriers
EAI
EU lauses
Ryanair
European Airline Industry
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Competitive Arena
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Awards & Recognition
Michaels Personality
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Increase the frequency of existing routes
Open new routes in Europe
Develop its small continental bases
Expand in Europe
Expand inNorthAfrica Aggressively seek market share from charter Market
Continue to find ways to reduce costs
Change online image
Improve employee relations
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A value chain describes the categories of activitieswithin and around an organization, which togethercreate a product or service.
Primary activities
Support activities
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Operate with lowermargins
Develop a uniquecost structure
Create efficiency inorganizational
capabilities
Focus on marketsegments with
low expectations
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Critical success factors (CSFs) are those productfeatures with which a organisation mustoutperform the competition because they are
particularly valued by a group of customers.
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Ryanair: ValueChain
MinimumCorporateHQ
LowCost
Training
Internet
Boeing
Discount
QualityTraining
LowCostSuppliers
AirportAgreements
NoFrills
LowCost
QuickTurnaroun
d
ReliableService
LowCostPromotions
Free Publicity
Internet
SalesYield
Management
LimitedResources
Basic/LowCost
High Productivity
Inbound
LogisticsOperations
Outbound
Logistics
Marketing
& SalesService
HRM
Infrastr.
Tech. Dev.
Proc.
LimitedCrew
Internet
Information
Alliances
ManagementControl
IntegratedSystems
Outsourced
In-houseLow TechMarketing
Internet Sales
Private
PerformanceContracts
n/a
LowCost
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Online kings
One lass ravel
icketless ar ing
nall cated eats lying t ec ndary
Air rts
int-t - int lying
N rills educed urnar und i es
N ef und licy
r rate artners i s
N argo ervice
Bargaining ower
NewAircrafts
OwnsOwn leet Operations Denominated in
uro
Hedge uel isk
Highly uccessf ul Ancillaryervice Off ering
Outsourcing of ervices atInternational Airports
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LowCostCompetitive Advantages
LimitedAirport Transportation
Advertising onAirplanes
Yield Management
Uniform Fleet
High Productivity
High Service Levels
General Cost Reductions
Eliminating seatback pockets No blankets or pillows
Airsickness bags distributed on request
Charges larger penalties for overweight luggage
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