Case Study Scenario: Ryanair
THE BRIEF Case Study Scenario: Easyjet/Ryanair/Flybe airline.
Easyjet/Ryanair/Flybe are the Europe’s leading low-fare airlines. The low fare airline is a budget airline, which is an airline that offers generally low fares in exchange for eliminating many traditional passenger services like meals. (http://en.wikipedia.org/wiki/List_of_low-cost_airlines).
Easyjet: http://www.easyjet.com/ Flybe: http://www.flybe.com/ Ryanair: http://www.ryanair.com/en
The CEO of Easyjet/Ryanair/Flybe, has stayed on with the company after the global financial crisis. At the time of the sale, the global economy was booming and the CEO was looking forward to overseeing the continued international expansion of the Easyjet/Ryanair/Flybe brand. Since then they had negotiated the opening of new routes in eastern Europe, Middle East and North Africa or even far east as well as operated more service such as Car rental, hotel, tour packages for customers.
However, the world economic outlook has deteriorated significantly since then, and the CEOs now would like some assistance with finding further internationalisation opportunities. They has appointed you as an external consultant to assist her in the development of a global strategic plan for the period 2013-2018, with the aim of finding new markets for Easyjet/Ryanair/Flybe. While the CEOs are open to suggestions on expanding in Easyjet/Ryanair/Flybe, she is particularly keen to find out about other parts of the world that may have escaped her attention.
Indeed, deciding about an economic area or a country market is just one part of the challenge. Easyjet/Ryanair/Flybeh service markets to pursue, given the diversity of their existing portfolio. Should they be opening more services like car rental, local bus, hotel or tour companies? Should they expand their more flight routes outside of Europe? Or How could they compete with other low-fare airlines like Wizz, Vueling and normal airlines for far east market? Could there be other brand extension opportunities that they have not thought about before?
Assignment Tasks
Carry out the following tasks in a max. 5000-word typewritten individual report. The aim of this report is to choose one of the low-fare airline (Easyjet/Ryanair/Flybe) and advise the management about entering new international markets, by proposing a 5-year internationalisation strategy (for 2013-2018).
Question 1: [max. 2000 words]
Carry out a strategic analysis of potential international markets for
Easyjet/Ryanair/Flybe that should include:
a) Analysis and evaluation of relevant external and internal factors.
b) Selection of appropriate country markets for Easyjet/Ryanair/Flybe.
Support your statements with concrete evidence and references, building on the findings of your individual research as well as the action learning set findings that were discussed in the ALS sessions.
Question 2: [max. 3000 words]
On the basis of the strategic analysis and market selection carried out in Question 1, formulate market entry strategies for your chosen markets for Easyjet/Ryanair/Flybe, consisting of recommendations for:
a) Entry-mode strategies and exit strategies for selected country markets.
b) Functional strategies, including product, marketing, and operations decisions.
c) An organisational structure for the implementation of the above strategies.
d) A strategic control system for managing the implementation of the above strategies.
Justify your recommendations with fully referenced research evidence derived from the analysis and evaluation of information from your individual and action learning set research, as well as with logical arguments using appropriate theories.
The assignment is an individual report that builds on the research and analysis discussed in the Assignment Learning Activity (ALS) sessions. You are required to write this report individually; however you are allowed to build on the material and ideas that emerged from the collaborative work of your ALS.
The assignment focuses on the fulfilment of following Intended Learning Outcomes:
1 Identify, select and apply appropriate strategic frameworks, models or concepts for the analysis and development of international and/or global strategies for a specific
organization;
2 Demonstrate knowledge of research on contemporary globalization issues;
3 Critically evaluate and apply frameworks for strategic analysis, strategy
selection/formation and strategy formation.
Question 1: [max. 2000 words]
?
Introduction
Identify terms of reference
Define the underlying problem
Provide brief overview of the region
Carry out a strategic analysis of potential markets for Easyjet/Ryanair/Flybe.
Explain what internal and external factors affect your market selection
Explain how potential markets were selected
Present key results of PESTEL analysis for
these
Explain what risk factors were taken into
consideration
Present key results of country attractiveness
analysis
?
Question 2: [max. 3000 words]
Formulate a new international market entry strategy for Easyjet/Ryanair/Flybe, consisting of recommendations for:
Define overall strategy for the region
Identify markets chosen
Identify timeframe and sequencing of strategy
?
1.Entry-mode strategies and exit strategies
Present entry-mode strategy for each market
Identify key sources of cross-border synergies
Present exit strategies for each market
2.Functional strategies
?
Formulate product, marketing, and operations strategies
3.An organisational structure for the implementation of the above strategies
? Present an organisational structure for Easyjet/Ryanair/Flybe operations
Explain fit between strategy and structure
4.A strategic control system for managing the
implementation of the above strategies
Present strategic control system for Easyjet/Ryanair/Flybenew international operations
Control system overview
Elements of control system
Explain fit between strategy, structure and
control
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