Swot Ryanair

Essay text:

For instance Ryanair is threaten in Europe by Eurostar or the Thalys. Customers make there choice in terms of spot of arrival, price and distance, therefore they will always compare every mean of transport each time they have to travel. It implies a very low fidelisation rate and Ryanair understood it by not having a fidelity program. LOW MID HIGH COMMENTS Threats of entrants Economies of sales X To get economies of scale a plan should be implemented all over the business area Product differenciation X Each airline provides a different product, the distinction is made on services provided, prices, spot of arrival Capital requirements X It is the biggest barrier due to high value of a fleet Cost Disavantages X Can be numerous such as upward trend in fuel price, airport tax or cost of maintaining a viable fleet Access to distribution Channels X No nationalised companies free market rules in this industry Governments policy X Quite easy thanks to web sites Not necessary to have agencies, evrething can be virtual Past behaviour of incumbents X Existing companies ignore new entrants Maturity X Difficult to enter a mature market unless huge investments LOW MID HIGH COMMENTS Treat of substitution X Internal Rivalry Number&size of competitors X Industry Exit Barriers X Capacity Increment Size X Net fixed Costs to Total Cost X The proportion is between mid and high Total Net Assets to Sales X Diversity of firms X Maturity X Product differenciation X