Assessment 1 Marketing

GBE: 804 BUSINESS ENTERPRISE OPERATIONS: MARKETING
Surname Ferry
First Name Sajitha
Student ID 2015013973
Name of Programme Post Graduate Diploma in Business Enterprise
Name of Paper GBE.804 Business Enterprise Operations: Marketing
Facilitator Julian Galt
Assignment No. 1
Unit Standard No. NA
(If Applicable)
Total No. of pages
(Including cover) 32
Submission Date 22.11.2015
Date received by facilitator
Date returned to student
Page | 1
Group Members
Name Student Id
Ashley V King 2015004171
Isuru Samarasinghe 2015013669
Pooja Parmar 2015014143
Romit Poddar 2015015424
Sajitha Ferry 2015013973
Word count is 3002 (excluding cover sheet, group member page, table of contents,
glossary and references)
Page | 2
No Index Page
Introduction 4
Purpose 4
1 Marketing Opportunity 5
A. Business Opportunities for AAI 5
B. Business Objectives for AAI 5
C. Intended Marketing Strategy of AAI along 5
Figure 1 6
2 AAI’s Key Macro and Micro Environment Factors 6
A.1. Macro Environment 6
Figure 2 7
A.2. Micro Environment 7
Figure 3 8
B. Implications of the Macro Environmental factors for AAI’s entry into the Indian Market 8
Table 1 9
Table 2 11
3 Environmental Factors experienced by Ryanair and AirAsia India 12
A. Impact of the environmental factors experienced by Ryanair on AAI 9
Table 3 13
B. Influence of external environmental factors on the marketing strategies of Ryanair 14
C.1. Ryanair’s internal capabilities 15

C.2. Assessment of Ryanair Capabilities 16
Figure 4 17
Figure 5 18
Figure 6 19
4 Importance and Application of Core Competencies 20
A. Ryanair’s contribution to the creation of customer value and customer equity 20
B. Opportunities for AAI’s adoption of Ryanair Competencies 21
Table 4 21
5 AAI’s Intended Marketing Focus 22
A. Critical Assessment of AAI’s Marketing Intensions 22
Figure 7 23
B. Recommended Marketing Mix for AAI 25
Figure 8 26
C. Proposed Marketing Mix Response for AAI 26
Figure 9 27
6 Evaluation of the Marketing Issues Application to Ryanair 28
A. Key Elements of Ryanair’s Marketing Mix 28
Figure 10 28
B. Comparison of Ryanair’s Marketing Mix with AAI’s proposed Marketing Mix 29
Table 4 29
Conclusion 30
References
Page | 3
Marketing environment comprises of the actors and forces outside marketing

management’s ability to develop and maintain successful transactions with its target
customers.
Kotler, 2013, p.116
INTRODUCTION
Marketing Environment plays a major role in all the business of this modern competitive
world. AirAsia India, the India-Malaysian low cost carrier (LCC), was a joint venture
between AirAsia Berhad, Tata Sons Limited and Telstra Tradeplace Private Limited.
Ryanair started its venture as a full service conventional budget airline. AAI is an
emerging low cost carrier, whereas, Ryanair is a successful LCC in the Aviation industry.
Though the target market of these two companies is different but they maintain various
similar marketing strategies.
Purpose
The main purpose of this research is to analyse the marketing environment of two aviation
companies AAI and Ryanair. The study also involves critical analysis of how AAI can
implement some of the capabilities and core competencies of Ryanair and move on to
establish itself in the Indian aviation industry.
Page | 4
Chapter 1
1. MARKETING OPPORTUNITY
A. Business Opportunity for AA
AirAsia received its Indian Aviation permit on 7th May 2014 and commenced operation
from 7thJune 2014. Tony Fernandez, the Chief Executive Officer of AA LCC saw the
potential of a billion travelers in the Indian market. The business opportunities that AA
perceived in the Indian market are
 Affordability of travel
 The gradual upturn in the Indian economy resulted in higher national income
which came from the continuous growth of the Gross Domestic Product at 9.6
percent
 By 2020, India has the potential to become the third largest civil aviation industry
in the world
B. Business objectives for AAI
The business objectives of AAI for its entry into the Indian market are outlined below:
 To be a major player in Indian LCC Aviation market

 Achieve air craft utilisation rate of 16 hours and turnaround time of 25 minutes
(Jayakumar, 2014, pp.1-4).
C. Intended Marketing Strategy of AAI
The marketing strategy that Air Asia intended AAI to pursue within the new market is
represented in the Figure 1:
Page | 5
Figure 1
Intended Marketing Strategy of AAI
Implications
For the cost effective utilisation and different lean processes used by AAI help for a
comprehensive and aggressive marketing approach. Streamlined operations and self-
tagging baggage services were the Unique Selling Propositions. For a low cost carrier
model low price with efficient processors have always been a crowd puller and the use
of fuel efficient aircraft helped in ways of managing the ever increasing high taxes on
aviation fuel. Secondary connecting destinations are going to help AAI to compact
competition as well as tap potential markets though out the country.
Chapter 2
2. AAI’s KEY MACRO AND MICRO ENVIRONMENTAL FACTORS
A. 1. AAI’s Key Macro Environmental Factors
The key macro environmental factors for AAI’s success in the Indian market are
diagrammatically represented in Figure 2:
Page | 6
Figure 2
Macro Environmental Factors
AAI’S KEY MACRO ENVIRONMENTAL FACTORS
Demographic
Economic Natural Technological Political/Legal Cultural
•The growth •Expected •Temperate to •Modernized •Open sky •Domestic

of working GDP growth tropical airports policy/ leisure travel
age group •Hike in climate •Greenfield deregulation •Foreign
•Rapid average •Strategically airports •FDI limits tourist
urbanisation income located in •Online ticket •Unstable •Status symbol
•Growth in between booking government •Security issue
tourism 9% ASEAN region •Video policies and terrorism
•Rising ATF •Burgeoning conferencing
price population of
•Affordability India
of travel as a
result of an
increase in
the national
income
•High airport
fees
A. 2. AAI’s Key Micro Environmental Factors
The key micro environmental factors for AAI’s success in the Indian market are
diagrammatically represented in Figure 3.
Page | 7
Figure 3
AAI’s Key Micro Environmental Factors
• The top • Aircraft

management suppliers
• Operations • Food supplier
• Finance • Fuel Suppliers
Company Suppliers
• Marketing • Indigo • Media

intermediaries • Spicejet • Internal
• Financial • Jetlite • Local
intermediaries • Vistara
Intermediaries Competitors Public
B. Implications of the Macro Environmental Factors for AAI’s entry into the
Indian market
Assessing the market potential is important to identify and justify the entry of the
company into specific markets (Kotler, 2013, pp.116-141). Assessment can be in two
levels, at the macro and micro levels. The table 1 shows the implications of key macro
environmental factors (academia.edu, n.d.) on AAI’s success in Indian market.
Page | 8
Table 1
Market environment and implications from a macro perspective
Page | 9
Page | 10
The table 2 shows the implications of key micro environmental factors on AAI’s success
in Indian market
Table 2
Market environment and implications from a micro perspectives
Micro Factors Implications
The company  Effective top management

 Operations
 Finance
-CEO Tony Fernandez is seen working with his team which
allows him to get to know his staff better and to listen to
customers’ feedback
The suppliers  Provides resources to the company to produce goods

and services
 With limited resources, AirAsia India has been able to
fulfill its consumers’ needs by collaborating with
partners
The Intermediaries  Marketing intermediaries
-Help the company to sell and distribute its products
 Authorised travel agents provide uncomfortable
travelers with making their bookings over the internet.
 Financial intermediaries
-Deals with travelers without credit cards by allowing them to
pay their tickets by cash
Competitors  Gained competitive advantage though positioning its
product against competitor’s product
 Managed to be the first airline in Asia to introduce
budget airline model.
Page | 11
 Offered savings up to 60 percent compared to other

LCCs
Public  Media public

-Increased media coverage on LCC’s helped consumers
understand the no-frills concept
 Internal public
-are the employees who work in a cooperative environment
 Local public
-Pleased the local publics who were worried about long
distance travel by launching more flights to regional
countries
-Influences on a company’s ability to achieve success.
Chapter 3
3. ENVIRONMENTAL FACTORS EXPERIENCED BY RYANAIR AND AIRASIA
INDIA
A. Impact of the Environmental Factors Experienced by Ryanair on AAI
Comparison between the operating environments (Slideshare.net, 2008) for Ryanair

with that of AAI has been represented in the Table 3.
Page | 12
Table 3
Operating Environment of Ryanair and AAI
RYANAIR AAI
Political
 Increased trade union Pressure • FDI limits
 Strict Health and safety • Unstable government policies
regulations
 Climate Protection charge
Economic
 Fuel Price instability • Expected GDP growth
 Regional subsidies • Hike in average income
• Growth in tourism 9%
• Rising ATF price
• Affordability of travel as a result of
an increase in the national income
• High airport fees
Social
 Increasing travelling life styles • Domestic leisure travel
 Increasing business travelling • Foreign tourist
• Status symbol
• Security issue and terrorism
Technological
 Increased internet competition • Modernized airports

 Technology expansion • Greenfield airports
o Internet sales/gambling • Online ticket booking
o Satellite television • Video conferencing
o Low fuel consumption
cars
o High speed trains
Legal
 Allegations of misleading • Open sky policy/ deregulation

advertising
 Law suits
o Illegal subsidies from
Airports
o Wheelchair charges
Page | 13
B. Influence of External Environmental Factors on the Marketing Strategies

of Ryanair
Porter’s Five Forces analysis (slide share, 2014) has been done to assess the
influences of external environmental factors on the marketing strategies pursued by
Ryanair.
Porter’s five forces
 Threat of New Entrants

- There is a substantial threat of new entrants due to the increase in demand for
short flights. However, the costs of starting an airline company are relatively high
and this means that the threat of new entrants is not too high but medium
 Bargaining Power of Suppliers
- Boeing has been traditionally the main supplier
- Shows Ryanair’s increasing bargaining power towards its main supplier
 Bargaining Power of Customers
- High bargaining power since switching to another airline is simple and without
additional expenses
- Increased level of price sensitivity of Ryanair customers
 Threat of Substitute Products or services
o Railway
o Sea transports
o Coach transports
o Car rental firms
 Competitive Rivalry
- Increasing
- due to deregulation, more competitors on more routes creating over capacity and
growing power of customers
- potential trend among some competitors add some “frills” and “flexibility
o virgin Express adds comfort
Page | 14
o easy Jet adds flexibility
C. 1. Ryanair’s Internal Capabilities
Internal capabilities give a company an added advantage over its competitors in the
same industry. Following are the internal capabilities of Ryanair.
 Decision-maker characteristics
o Prior business experience and international orientation
o Good leadership insight
- Positive impact on its international expansion.
 Internal resources
o physical assets
 aircraft/fleet
 machinery
o intangible assets
 unique business processes
 licenses and patents
 Reputation
o Human resources
 Talented and knowledgeable employees
o Financial resources
 Ryan family
 Share holders
 Investors and creditors
o Intellectual resources
 Knowledge, skills, abilities and talents
- lead to competitive advantage through the alignment of
 Creating superior value and equity for their customers
 Supplying their better value-adding activities in an effective manner
 Possessing over the resource base which is essential to perform the
value-adding activities
Page | 15
 Distribution channel adaptation

o Internet based reservations and ticketing service
 Offer the carriers the opportunity to manage their revenue
management system by receiving direct revenue of all bookings.
 Ensure that the airlines capture key details regarding customers for
their database
 Provide services more closely to customers’ needs.
 Cost management capabilities
o Fleet commonality
o High fleet utilisation
o Fuel costs
 Reduced through flying slow policy
o No dividend policy
o Cost cutting/yield enhancing measures such as
 Priority boarding
 Web based check-in
o Point to point route policy/airport access and handling costs
 Reducing airport charges by avoiding main airports and choosing
secondary and regional destinations.
o Ancillary revenues
 In flight services – beverage, food and merchandise sales.
 Web based travel insurance, car rentals and accommodation.
- Enable to achieve cost advantages (Scribd.com, 2009).
C. 2. Assessment of Ryanair Capabilities
Internal Analysis help firms to achieve competitive advantage and superior economic
performance. Internal analysis provides a comparative look at a firm’s capabilities, its
strengths and weaknesses (Scribd.com, 2009). It also helps to compare these strengths
Page | 16
& weaknesses to competitors. The Internal analysis has been done in two steps –
Resource based and Situation based to assess and rate the capabilities in accordance
with relative importance to market response.
Resource Based Analysis
The figure 4 gives a view of resource based analysis of Ryanair Capabilities.
Figure 4
Resource Based Analysis
We are analyzing the above mentioned resource based view with the help of figure 5.
Page | 17
Figure 5
VRIO Framework
VRIO FRAMEWORK
Competitive
Valuable Rare Organized
Inimitable Advantage
If the resources of the firm are valuable, rare, costly to imitate and the firm is
organised to make use of these resources, then the firm can expect to have the
benefit of competitive advantage
From the resource based analysis and VRIO Framework, we can understand that if the
internal resources are valuable, rare, costly to imitate and organised to exploit, then the
organisation can attain competitive advantage.
Situational Analysis of Ryanair
SWOT analysis has been done to rate the internal capabilities of Ryanair in accordance
with relative importance to market response. Figure 6 represents the situational analysis
against Ryanair’s marketing environment.
Page | 18
Figure 6
SWOT Analysis of Ryanair
Page | 19
Chapter 4
4. IMPORTANCE AND APPLICATION OF CORE COMPETENCIES
A. Ryanair’s Contribution to the Creation of Customer Value and Customer

Equity
Ryanair’s customer value and customer equity is placed on the following:
o Cheapest possible fares

o On Time Arrivals and departures 88% - 95 %, 25 Minute turn around.
o Reduce % of Lost baggage compared to Air Lingus or others
o Use of smaller airports therefore lower landing charges.
o Because of the size of Ryanair’s fleet, they set the price and tell people
what they are prepared to pay Boeing versus Airbus, airports Dublin &
Stansted.
o Green and Environmental
o Fuel saving through hedging S
o Wingtips on planes save 2 %
o Same planes i.e. Boeing 727 saves money on Parts (Inventory),
maintenance and Staff training.
o Building bigger planes, same staff numbers bigger returns (O’Higgins,
2011, pp.618-629).
Page | 20
B. Opportunities for AAI’s adoption of Ryanair Competencies

Opportunities for AAI’s adoption of Ryanair competencies (Scribd.com, 2009) is
presented in the table 4.
Table 4
AAI’s adoption of Ryanair competencies
Fleet Commonality Airasia India should use more Boeing 737 aircrafts as
Ryanair which is now a days the most usually operated
ones to keep a similarity in fleet and reduce maintenance
repair and overhaul to have cost effectiveness.
Contracting out Outsourcing of aircraft handing, ticketing , baggage handling
service and other ground service functions to third parties resolves
the exposure of AAI to high overhead costs and also
contracting helps for maintaining different competitive rates in
muti-year contracts and sometime fixed prices for renewals
There is lot of savings and the company can avoid direct
employee relations and disputes.
Airport charges and AAI should choose interesting category 2 and 3 secondary
route policy airports to decrease on various airport terminal related fees to
make their market penetration worthwhile.
Staff costs and To reduce cost for human resource performance oriented pay
productivity structure is to be devised to control employee consumption
expenses.
Marketing costs Reducing on incentive and commission rates for
intermediaries like agents will help to reduce marketing costs
as alternative forms like print, media and online is being used
in full swing (O’Higgins, 2011, pp.622-625).
Page | 21
Chapter 5
5. AAI’s INTENDED MARKETING FOCUS
A. Critical Assessment of AAI’s Marketing Intentions
AAI’s marketing intensions aimed to create a revolution in the Indian Aviation market by
pursuing its characteristic aggressive pricing strategies, together with extremely
competitive operational targets (Jayakumar, 2014, pp.4-8).
If we analytically measure the TOWS matrix, then it provides us not only a SWOT but
also critically accesses the AAI’s situation. Figure 7 shows the diagrammatic
representation of TOWS matrix
Page | 22
Figure 7
Diagrammatic Representation of TOWS
Weaknesses
Strenght to
to avoid to
gain
again
opportunities
opportunities
Eradicating
Using
weaknesses
strengths to
which can
shut out
become
threats
threats
STREANGTH / OPPORTUNITIES
 In the ASEAN region, it is a well know name in aviation services. The good track
record except one or two hiccups have made it a valuable brand among
customers. All these success stories along with efficient aircraft ultilisation will
help AAI to make inroads into the Indian skies.
 Initially it has started with maybe two aircrafts but the LCC has a supporting fleet
of over 120 aircrafts which it already inherits from the parent company.
 It has expansive connectivity and numerous networked hubs and subsidiaries
internationally which helps its global image in India.
 It’s trying to establish itself as a market nicher by concentrating specifically the so
called ultra-low cost segment of the market as the existing domestic LCC players
have moved up the value chain creating this void.
Page | 23
 AAI has the capacity to undertake long trail flights due to its streamlined
operative and aircraft utilisation measures.
WEAKNESSES / OPPORTUNITIES
 To avoid complacency, even if they are robust in nature as an organisation and

have strong communication, promotion and marketing skills.
 Quick expansion to numerous routes within the length and breadth of India will
be a challenge and should be executed perfectly to avoid potential capture of
untapped market.
STRENGTH / THREATS
 Using overall cost leadership in pricing in the market, differentiation in product

mix and services and focus on distribution and promotion, AAI can cut down on
the threats of intense competition in the industry.
 Sustaining the operating costs by better operational excellence AAI can manage
the threats of rising fuel costs.
 Specifically concentrating on a particular market strata that is niching will make
AAI different and it can relax even if new foreign players come in as the FDI
norms have been relaxed.
WEAKNESSES / THREATS
 AAI should continuously support its claim for over 30% lower fares than market
so that it can avoid the threat of competitor cost leadership.
 It should always try to achieve the turnaround time of 20 minutes which AAI have
promoted extensively as its objectives. If they fail frequently to get this right, then
customer sentiments will be hit and they might get dissatisfied immediately.
From case studies’ perspective India was likely to be major growth market in the future.
AAI planning to offering fares 35% cheaper than the competition. They have set their
Page | 24
own challenge and being “low cost” was no guarantor of success (Jayakumar, 2014,
pp.4-6).
Strategy must compete successfully in short and long term, so AAI has to understand
their operations, but also frequently reinvent their strategies, differentiated and relevant.
Then only they can compete with the ever changing environment. I would suggest AAI
to do “SWOT” analysis to understand company’s situation.
B. Recommended Marketing Mix for AAI
Marketing Mix will always be essential for a new entrant like AAI in a new market.
Recommending on this we highlight on these points.
As Airasia India is supposedly in the growth portion of product life cycle and it’s trying
penetrate more markets with its existing products and services. The product/market
expansion grid is represented diagrammatically in figure 8. So the recommended
marketing mix will incorporate minor extensions and modifications (Kotler, 2013. p.68).
Lowering down prices and heavy advertising are the basic strategies taken by AAI to
increase volume and margins in the Indian market.
Page | 25
Figure 8
The Product/Market Expansion Grid
C. Proposed Marketing Mix Response for AAI
Recommending on the marketing mix, we feel that the 4Ps have always been the centre
stage for the target market analysis. But in new age marketing concept we place this
customer centric 4Cs in place of seller oriented 4Ps. Figure 9 is the diagrammatic
representation of the proposed Market Mix response for AAI.
Page | 26
Figure 9
Diagrammatic Representation of Marketing Mix AAI
Page | 27
Chapter 6
6. EVALUATION OF THE MARKETING ISSUES APPLICABLE TO RYANAIR
A. Key Elements of Ryanair’s Marketing Mix
The figure 10 represents the key elements of Ryanair’s marketing mix.
Figure 10
Diagrammatic Representation of Ryanair’s Marketing Mix
PRODUCT(or Service) PLACE

Direct marketing techniques to recruit and retain
Turnaround time is 25 minutes - planes are more customers, and to extend products and services to
productive and can make more journeys per day. them.
Seats are not allocated - saves time and Online booking.
management cost. Choice of location (eg: Stansted Airport) - resulted in
No free food or drink onboard (Food and drink are cost savings.
income streams). Use of secondary airports - turn aircraft around more
Ancillary revenue from car rental, and a number of quickly.
hotel businesses as well as from phone cards and bus
tickets.
MARKETING MIX
Ryanair
PROMOTION
PRICE
Spend little on advertising.
Low fares, no frills.
Use simple adverts that tell passengers that Ryanair has
70% of seats are sold at the lowest two fares, 30% at low fares.
higher fares and the last 6% at the highest fare.
Employs controversy to promote its business.
Predatory pricing - drive the competitors from the
market to open up the opportunity for prices to be Some of their aircraft are decorated in the costume of
raised and the profits to be earned. advertisers e.g. News of the World, Jaguar and Kilkenny
(beer).
Page | 28
B. Comparison of Ryanair’s Marketing Mix with AAI’s Proposed Marketing

Mix
The similarities and the differences between Ryanair’s Marketing Mix and AirAsia
India’s proposed Marketing Mix has been presented in the Table 4.
Table 4
Comparison between Ryanair’s Marketing Mix and the AAI’s recommended Marketing
Mix
Place
 1. Direct marketing techniques to recruit 1. Should need to continue with the use of
and retain customers, and to extend secondary airports.
products and services to them.
 2. Online booking 2. Should add more destinations
 3. Choice of location (e.g. Stansted Airport)
Resulted in cost savings
 4. Use of secondary airports - Can turn
aircraft around more quickly.
Promotion
 1. Spend little on advertising. 1. Improve on advertisement –guerrilla
 2. O’Leary (CEO) himself oversees much of marketing and promotion
the promotion of Ryanair. 2. Giving extra luggage allowances
 3. Use simple adverts that tell passengers 3. Expand business sponsorship to
that Ryanair has low fares. increase income
 4. Employs controversy to promote its 4. Expose and maintain the brand in future
business.
5. Some of their aircraft are decorated in
the costume of advertisers e.g. News of the
World, Jaguar and Kilkenny (beer).
Conclusion
Page | 29
We have not only critically analysed the marketing environments of AA India in

conjunction with Ryanair but also recommended future marketing strategies for AAI to
implement within the Indian subcontinent.
Page | 30
Glossary
AA AirAsia
AAI AirAsia India
FDI Foreign Direct Investment
ATF Aviation Turbine Fuel
LCC Low Cost Carrier
ASEAN Asia and South East Asian
GDP Gross Domestic Product
NRI Non Resident Indian
EU European Union
TOWS Threat Opportunity Weakness and Strength
SWOT Strength Weakness Opportunity and Threat
VRIO Valuable Rare Inimitable and Organised
Page | 31
References
Jayakumar, T. (2014). AAI: Clash for the Indian Skies. Ivey Business School.
Kotler et.al. (2013). Marketing (9th ed). Frenchs Forest NSW: Australia: Pearson.
O.Higgins, E. (2011). Ryanair: The low fare airlines – future destinations? Harlow:
Pearson Education Ltd.
http://www.scribd.com/doc/18152552/RyanAir-Case#scribd, RyanAir Case, Dian

Ratnasari, 05 August 2009.
http://www.slideshare.net/joostnarraina/ryanair-strategic-management , Ryanair
Strategic Management & Marketing Strategy, 24 February, 2014.
http://www.slideshare.net/The_E_group/Ryanair-Study-version-7, Ryanair Strategic

Study, 22 December 2008.
http://www.slideshare.net/vipulaurange/airasia-india-strategies-for-next-3-years, AirAsia
India: Strategies for Next 3 Years, 09 January, 2014.
https://prezi.com/vtt4c0emtjs3/copy-of-case-study-on-air-asia/,
Case Study on Air Asia, Wong Pui Lam, 19 February 2014
https://www.academia.edu/6803327/AirAsia_The_Indian_Challenge, AirAsia: The India

Challenge, n.d.
Page | 32
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GBE: 804 BUSINESS ENTERPRISE OPERATIONS: MARKETING

First Name Sajitha

Name of Programme Post Graduate Diploma in Business Enterprise

Name of Paper GBE.804 Business Enterprise Operations: Marketing

Facilitator Julian Galt

Unit Standard No. NA

Total No. of pages

Submission Date 22.11.2015

Date received by facilitator

Date returned to student

Ashley V King 2015004171

Isuru Samarasinghe 2015013669

Pooja Parmar 2015014143

Romit Poddar 2015015424

Sajitha Ferry 2015013973

C.1. Ryanair’s internal capabilities 15

Marketing environment comprises of the actors and forces outside marketing

Kotler, 2013, p.116

A. Business Opportunity for AA

B. Business objectives for AAI

 To be a major player in Indian LCC Aviation market

C. Intended Marketing Strategy of AAI

Intended Marketing Strategy of AAI

A. 1. AAI’s Key Macro Environmental Factors

Macro Environmental Factors

AAI’S KEY MACRO ENVIRONMENTAL FACTORS

•The growth •Expected •Temperate to •Modernized •Open sky •Domestic

A. 2. AAI’s Key Micro Environmental Factors

AAI’s Key Micro Environmental Factors

• The top • Aircraft

• Marketing • Indigo • Media

Market environment and implications from a macro perspective

Market environment and implications from a micro perspectives

Micro Factors Implications

The company  Effective top management

The suppliers  Provides resources to the company to produce goods

 Offered savings up to 60 percent compared to other

Public  Media public

A. Impact of the Environmental Factors Experienced by Ryanair on AAI

Comparison between the operating environments (Slideshare.net, 2008) for Ryanair

 Increased internet competition • Modernized airports

 Allegations of misleading • Open sky policy/ deregulation

B. Influence of External Environmental Factors on the Marketing Strategies

 Threat of New Entrants

o easy Jet adds flexibility

C. 1. Ryanair’s Internal Capabilities

 Distribution channel adaptation

- Enable to achieve cost advantages (Scribd.com, 2009).

C. 2. Assessment of Ryanair Capabilities

Resource Based Analysis

The figure 4 gives a view of resource based analysis of Ryanair Capabilities.

Resource Based Analysis

Situational Analysis of Ryanair

SWOT Analysis of Ryanair

4. IMPORTANCE AND APPLICATION OF CORE COMPETENCIES

A. Ryanair’s Contribution to the Creation of Customer Value and Customer

Ryanair’s customer value and customer equity is placed on the following:

o Cheapest possible fares

B. Opportunities for AAI’s adoption of Ryanair Competencies

Diagrammatic Representation of TOWS

 To avoid complacency, even if they are robust in nature as an organisation and

 Using overall cost leadership in pricing in the market, differentiation in product

B. Recommended Marketing Mix for AAI