Air Arann Case - Peter Mcnamara Ucd, Dublin

What competitive strategy should Aer Arann formulate to survive in this sedulousness? What key steps should it take to implement this strategy? strategical option 1: stand and fight The question is whether nimbus Arann wants to grapple pricewise or benefitwise. Pricewise competition seems not very promising as Ryanair can exploit more economies of scale and thereby has overturn operating costs. Air Arann fuel efficiencies depend heavily on the load factor which is very likely to decline callable to a decreasing overall demand and Ryanairs competition on the same routes. Hence, as long as Air Arann and Ryanair argon competing in the same market, the scale benefit will be on Ryanairs side. Also, Ryanair is not depending on the inter-Ireland market and then can follow an aggressive price strategy correct with negative profit for some time in send to eliminate Air Arann. An increase in market grapple for Air Arann ascribable to degrade costs seems thus unrealistic. Benefitwise, due to a high service level, AirArann has a competitive receipts and the question is whether customers atomic number 18 willing to pay higher prices for that. Given the fact, that inter-Ireland flights are very short, it might be the miscue that customer do not value additional services, as the flight will only take 20-40 minutes.

They want to bewilder from A to B at the lowest cost possible. even out if they would value the better services of Air Arann, Ryanair could further lower the prices (see explanation above) and thereby make it even less sweet for customers to fly with Air Arann for higher prices. Strategic option 2: cut and run We doubt that there are many similar markets left which offer enough potential for Air Arann. Air Arann can for example focus on other, less frequented routes, but these are also less profitable. Eventough Air Aranns aircrafts are more fuel-efficient, this advatange is erradicated if they achieve a low load factor, which is preferably likely on less frequented routes. If they would decide to increase... If you want to shoot for a full essay, order it on our website: Ordercustompaper.com

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