2) What would Edwards hope to gain from such a strategy?
The new marketing strategy could serve to bring a greater customer base to the company.
Case study: Dogfight over Europe (J.Rivkin, Harvard Business School case no. 9-700-115 / 116/117, rev. November 2007)
1) What is your assessment of Ryanair's launch strategy?
Ryanair ran four round trips each day and offered meals and amenities that were similar to Aer LInguis and British Airways. The company decided to distinguish itself by first, focusing intently on delivering first-rate customer service and secondly, charign a single fare for a ticket with no restrictions. Lowering of fares in May 1996 was met by Aer Lingus and British Airways with a lowering of their fare and in response Ryanair lowered its unrestricted fare in what was termed to be "predatory pricing…to take over market share." The initial performance of Ryanair was good with its flights being nearly 100% booked. While Rynaiar had startup losses in 1985, it posted profits of approximately 2 million in 1986 and even a larger profit in 1987. Ryanair expanded greatly with new routes being run by the company and eventually with five aircraft and 27 routes. The company was smart in its initital introduction prices then gaining a following through their excellent customer services.
2) Can the...
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