Ryanair: success before love

2015 ◽  
Vol 31 (8) ◽  
pp. 1-3 ◽  
Author(s):  
Mark Thomas
Keyword(s):  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Public Image ◽  
Necessary Condition ◽  
Sustainable Competitive Advantage ◽  
Value Proposition ◽  
Content Type ◽  
The Public ◽  
True Value

Purpose – This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry. Design/methodology/approach – The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models. Findings – The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.

Shapeholders: managing them as allies, partners and significant constituents

2017 ◽  
Vol 45 (5) ◽  
pp. 41-48 ◽  
Author(s):  
Oleksiy Osiyevskyy ◽  
Vladyslav Biloshapka
Keyword(s):  
Business Models ◽  
Social Activism ◽  
Business Success ◽  
Content Type ◽  
Building Relationships ◽  
The Public ◽  
Short Run ◽  
Common Interests ◽  
The Subject ◽  
Practical Implications

Purpose The authors review the concept of building relationships with Shapeholders,: a broad group of players that have no financial stake in the company yet can substantively influence it. The process for doing this is the subject of a new book by Mark Kennedy, Shapeholders: Business success in the age of social activism. Design/methodology/approach The authors examine Mark Kennedy’s framework for managing the firm’s shapeholders, a model composed of seven basic steps (7A’s): Align with a purpose, Anticipate, Assess, Avert, Acquiesce, Advance common interests, and Assemble to win. Findings Managing corporate reputation in alliance with enlightened shapeholders is a potential defense against self-aggrandizing schemes to wantonly maximize shareholder value in the short run. Practical implications Managing shapeholders is part of the messy democratic process that works when power is apportioned fairly among those affected by a firm’s decisions, and this process underpins the winning business models of true market leaders. Social implications Stakeholders previously discredited as mere “mosquitos” have gained new power, particularly when their legitimate concerns and unfair treatment resonate with the interests of a significant segment of the public and influential shapeholders. Originality/value Shapeholders can create enormous opportunities for smart managers capable of effectively engaging with them.

WASPAS based MULTIMOORA method under IVIF environment for the selection of hub location

2020 ◽  
Vol 33 (5) ◽  
pp. 1233-1256
Author(s):  
Nezir Aydin ◽  
Sukran Seker
Keyword(s):  
Decision Making ◽  
Airline Industry ◽  
Low Cost ◽  
Evaluation Criteria ◽  
Hub Location ◽  
Content Type ◽  
Efficiency And Effectiveness ◽  
Decision Making Processes ◽  
Product Assessment ◽  
The City

PurposeLow cost carriers (LCCs) have become one of the most significantly growing parts of the airline servicing market. This new player has redesigned the whole airline industry, which was previously led by the national/international full-service airline companies. Considering such advancements, the hub locations of LCCs became an important issue than ever before. Within this concept, a guiding framework is developed for an LCC company, which is in search of a new hub airport location within Turkey to satisfy the demand and attract new passengers.Design/methodology/approachAn interval-valued intuitionistic fuzzy (IVIF) sets based weighted aggregated sum product assessment (WASPAS) and multi-objective optimization by ratio analysis (MULTIMOORA) methods are developed for decision-making processes.FindingsFive airport locations are evaluated using the developed method. Results showed that in determining hub locations for LCCs, potential number of passengers of the city, airport quality and the number of hotels within the city are obtained as the three most important criteria among 12 evaluation criteria. The best location for the LCC company is determined as Antalya Airport.Research limitations/implicationsTo apply the proposed method to a different set of alternatives, data gathered on comparing location of alternatives from experts should be updated.Originality/valueProposed hybrid framework is presented as the first time in the literature as a decision-making tool. In order to validate framework's applicability, efficiency and effectiveness, a comparison and a sensitivity analysis are conducted at the end of the study.

Air Asia India: competing for air space in an emerging economy

2017 ◽  
Vol 27 (5) ◽  
pp. 516-532 ◽  
Author(s):  
Tulsi Jayakumar
Keyword(s):  
Multinational Enterprises ◽  
Business Models ◽  
Joint Venture ◽  
Low Cost ◽  
Emerging Market ◽  
Secondary Data ◽  
Emerging Economy ◽  
Competitive Strategies ◽  
Content Type ◽  
Country Specific

Purpose The purpose of this paper is to understand the competitive landscape of emerging market economies (EMEs) and the implications of business models and strategies used by multinational enterprises (MNEs) to enter and operate in such landscapes. It does so by considering the aviation sector in an emerging economy – India, and by studying the strategies pursued by AirAsia India – the Indian joint venture of AirAsia Investment Limited and Tata Sons.. Design/methodology/approach The paper follows a case study approach. Secondary data sources from the library, company website and newspaper articles have been used to build a case that would encourage students to discuss and analyze the competitive strategies followed by MNEs in EMEs. Findings Emerging markets offer attractive investment opportunities to MNEs across several industries. However, their markets for intermediate goods and services possess imperfections. Competitiveness in such markets will require going beyond country-specific and firm-specific advantages. MNEs will need to integrate location-specific advantages with internalization advantages of these market imperfections to operate successfully in the complex environments of EMEs. A one-size-fits-all approach of transposing successful strategies from home markets will fail to create value. Practical implications MNEs, such as AirAsia, will need to develop participatory skills to leverage the location-specific-advantages of EMEs and reduce their own curse of foreignness to be able to succeed in EMEs. Originality/value This paper contributes to extant literature by studying the competitive strategies pursued by a global leader in an EME. The case of the “World’s Best Low-Cost Airline” – AirAsia’s India operations seeks to go beyond the Eclectic Paradigm and the country-specific and firm-specific advantages framework, to provide a location-internalization paradigm for operating in EMEs.

Europe's airlines will see more restructuring

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Terrorist Attacks ◽  
Content Type ◽  
Underlying Condition ◽  
The Past ◽  
Low Cost Carrier ◽  
The Eu

Subject Europe's airline industry. Significance Despite good performance over the past year, the underlying condition of the European airline industry has not changed. Major carriers are still facing competitive challenges from long-haul airlines based in the Gulf, especially Emirates, Qatar Airways and Etihad Airways, and from the European low-cost carrier (LCC) sector. Impacts The fallout from recent terrorist attacks could hit the industry's fragile recovery. Labour unrest in France will affect Air France, as its pilots voted on May 30 to go on strike over pay conditions. A UK exit from the EU would force its airlines, some of the most efficient in Europe, to reconsider the focus of their operations. New opportunities may arise from the Commission's efforts to negotiate aviation agreements with such countries as Brazil as well as ASEAN.

Ailing Kenyan carrier will face more competition

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Air Travel ◽  
Recovery Strategy ◽  
East African ◽  
Content Type ◽  
Profit Margins ◽  
Low Cost Carriers ◽  
Fuel Costs ◽  
Air Carriers

Significance Despite low fuel costs and the global airline industry running profitable operations, Kenya Airways has recorded multiple years of losses, leading the company to consider a recovery strategy that includes selling aircraft and shedding jobs. Impacts East African air carriers could benefit from industry rationalisation, but domestic political concerns could obstruct regional reforms. Low-cost carriers have emerged in Africa but struggle to make headway against publicly owned airlines. Once Kenya Airways exits fuel-hedging commitments, lower prices should improve profit margins. Without airline liberalisation and local carrier rationalisation, foreign airlines will benefit most from growing African air travel. Government protectionism, high taxes and regulation will restrict competition, especially from low-cost carriers.

Pakistan’s census will prompt redistributive measures

2017 ◽  
Keyword(s):  
Family Planning ◽  
Population Growth ◽  
Population Control ◽  
Low Cost ◽  
Content Type ◽  
The Public ◽  
Afghan Refugees ◽  
High Population Growth ◽  
Common Interests ◽  
Low Cost Housing

Subject Implications of Pakistan's sixth census, completed this year. Significance The provisional results of Pakistan’s sixth census were in August presented to the Council of Common Interests (CCI) before being revealed to the public; the previous census was in 1998. High population growth will generate challenges for the state in managing elections and making policy. Impacts Pakistan’s government may draw up schemes for population control, emphasising family planning. Demand will grow for low-cost housing in cities. Islamabad may step up plans to repatriate Afghan refugees.

Survival strategy of OEM companies: a case study of the Chinese toy industry

2016 ◽  
Vol 36 (9) ◽  
pp. 1065-1088 ◽  
Author(s):  
Dezhi Chen ◽  
William Wei ◽  
Daiping Hu ◽  
Etayankara Muralidharan
Keyword(s):  
Business Models ◽  
Low Cost ◽  
Transition Process ◽  
Labor Costs ◽  
Original Design ◽  
Content Type ◽  
Industry Chain ◽  
The Status ◽  
Toy Industry

Purpose Although there have been many discussions on the status and development of original equipment manufacturers (OEMs), theory on how they survive is minimal. Little is known about how OEMs survive and upgrade to other business models, such as original design manufacturers (ODMs) and original brand manufacturers (OBMs), in emerging economies. The purpose of this paper is to extend the theory on the survival path of OEMs from the perspective of emerging countries by examining how OEMs survive cost pressures and upgrade to ODMs or OBMs. Design/methodology/approach Using a multi-case study method, this study analyzes the survival path employed by OEMs by examining eight firms in the Chinese toy industry. Findings This study shows that OEMs remain weak in the global toy industry chain due to labor costs. While some OEMs move to low-cost regions, others turn to OBM management, after transitioning through an ODM model, by investing in research and development and marketing. Originality/value This study explores the survival paths of OEM enterprises, showing that OEMs can first upgrade to ODMs and then to OBMs, or they can directly upgrade to OBMs. Shifting from OEM to ODM is an important step in the transition process, although the contract that OEMs have with their foreign partners does not change significantly.

US airline collusion charges could save Open Skies

2015 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Department Of Transportation ◽  
Predatory Behaviour ◽  
Content Type ◽  
Fleet Size ◽  
Us Economy ◽  
The Us ◽  
Low Cost Carrier ◽  
Lock In

Subject Outlook for US investigations into airlines collusion. Significance Three carriers, United, American Airlines and Delta, account for 80% of US domestic air travel; Southwest, the leading low cost carrier (LCC) takes much of the remainder. The Department of Justice (DoJ) and the Department of Transportation (DoT) have both launched major investigations into the pricing practices of the airlines. Both regulatory moves imply that the rationalisation of the US airline industry has left passengers vulnerable to predatory behaviour, which would worsen if the US market were further closed to foreign competition. Impacts Low oil prices may provide a long-term boost to profits if airlines move to lock in new hedges. However, manufacturers will be hit hard by an economic slowdown in China, home of two of the largest airlines by fleet size. Increasing wages elsewhere in the US economy will add further pressure to airline labour costs.

Marico – competing with an innovative business model

2018 ◽  
Vol 8 (2) ◽  
pp. 1-20
Author(s):  
Sumit Mitra ◽  
Ranjith V.K.
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Product Innovation ◽  
Business Models ◽  
Subject Area ◽  
Sustainable Competitive Advantage ◽  
Strategy Formulation ◽  
Content Type ◽  
Innovative Company ◽  
Executive Mba

Subject area Strategic Management. Study level/applicability MBA, Executive MBA. Case overview This case deals with Harsh Mariwalla’s struggle to develop an innovative company from scratch. The journey of innovation is not an easy one. Marico was forced to compete with multinationals in many markets where it operated. Constant pressure from rivals has made the company develop a new innovative business model, which is expected to generate profitability and sustainable competitive advantage. Expected learning outcomes Students will be able to appreciate the business models, understand the competitive moves by rivals, understand strategy formulation and implementation, understand product innovation and competitive advantage and understand the ability to tackle competition with innovation. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

Viable Business Models for M-Commerce

2011 ◽  
pp. 837-852
Author(s):  
Jiaxiang Gan ◽  
Jairo A. Gutiérrez
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Competitive Strategy ◽  
Business Models ◽  
Market Segment ◽  
Value Proposition ◽  
Value Network ◽  
The Public ◽  
Profit Potential ◽  
Viable Business

As mobile applications increase in popularity, the issue of how to build viable business models for the m-commerce industry is becoming a clear priority for both organizations and researchers. In order to address this issue, this chapter reports on five mini cases used as a guideline, and applies the theoretical business model from Chesbrough and Rosenbloom (2002) to each of them to find out the most important components of viable business models for their m-commerce applications. The study then uses cross cases analysis as a research tool to compare and contrast each of the mini cases and to find out how the different organizations fit within the researched theoretical business model. Finally, this chapter confirms that there are 7 important components of viable business models for m-commerce which are: value proposition, market segment, value chain, profit potential, value network, competitive strategy and firm capabilities. This study also highlights the fact that the public visibility of these 7 components is uneven. Some components such as value proposition, value chain, value network and firm’s capabilities are more likely to be presented in public by organizations. However, aspects such as cost structure and profit potential, market segment and competitive strategy are more likely to be hidden from the public due to their commercial sensitivity.

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