Luxury and the Montblanc brand Essay

It is generally acknowledged that western consumption of luxury in the 1980s and 1990s was motivated primarily by status-seeking and appearance. This means that social status associated with a brand is an important factor in conspicuous consumption. The baby boom generation luxury consumer has a passion for self-indulgence while maintaining an iconoclastic world view, which is transforming the luxury market from its ‘ old ’ conspicuous consumption model to a totally new, individualistic type of luxury consumer one driven by new needs and desires for experiences ’ . The expression of ‘today’s luxury’ is about a celebration of personal creativity, expressiveness, intelligence, fluidity, and above all, meaning. LUXURY AND POSTMODERNISM Recent arguments have been sounded that aspects of contemporary luxury consumption have reflected the phenomenon of postmodernism. Postmodernity means very different things to many different people’. Postmodernism is essentially a western philosophy that ‘refers to a break in thinking away from the modern, functional and rational’. In terms of experiential marketing, two aspects of the postmodern discourse are most relevant: hyper-reality and image. Hyper-reality refers to ‘the blurring of distinction between the real and the unreal, in which the prefix ‘hyper’ signifies more real than real. When the real that is the environment, is no longer a given, but is reproduced by a simulated environment, it does not become unreal, but realer than real’. The example of Bollywood to illustrate the so-called ‘Disneyfication’ of reality within the context of contemporary Indian society: ‘Bollywood captures not only the imagination in the form of song, music and dance but fairy tale settings, romantic melodrama and heroic storylines immerse the viewer in ‘simulated reality’. Traditional marketing was developed in response to the industrial age, not the information, branding and communications revolution we are facing today. In a new age, with new consumers, we need to shift away from a features- and-benefits approach, as advocated by traditional approaches to consumer experiences. One such approach is experiential marketing, an approach that in contrast to the rational features-and-benefits view of consumers takes a more postmodern orientation, and views them as emotional beings concerned with achieving pleasurable experiences. EXPERIENTIAL LUXURY MARKETING When a person buys a service, he purchases a set of intangible activities carried out on his behalf. But when he buys an experience, he pays to spend time enjoying a series of memorable events that a company stages to engage him in a personal way. Experiential marketing is thus about taking the essence of a product and amplifying it into a set of tangible, physical and interactive experiences that reinforce the offer. Experiential marketing essentially describes marketing initiatives that give consumers in-depth, tangible experiences in order to provide them with sufficient information to make a purchase decision. It is clear that the fact that many luxury goods are almost always experiential puts luxury marketers in a unique position to apply the principles of experiential marketing to their activities. Dimensions of the luxury experience The term ‘involvement’ refers to the level of inter-activity between the supplier and the customer. Increased levels of involvement fundamentally change the way in which services are experienced, that is, suppliers no longer create an experience and pass it to the customer; instead, the supplier and customer are interactively co-creating the experience. The term ‘intensity’ refers to the perception of the strength of feeling towards the interaction. The four experiential zones are not intended to be mutually exclusive; the richness of an experience is, however, a function of the degree to which all four zones are incorporated. Those experiences we think of as Entertainment, such as fashion shows at designer boutiques and upmarket department stores, usually involve a low degree of customer involvement and intensiveness. Activities in the Educational zone involve those where participants are more actively involved, but the level of intensiveness is still low. In this zone, participants acquire new skills or increase those they already have. Many luxury goods offerings include educational dimensions. For example, cruise ships often employ well-known authorities to provide semi-formal lectures about their itineraries – a concept commonly referred to as ‘edutainment’. Escapist activities are those that involve a high degree of both involvement and intensiveness, and are clearly a central feature of much of luxury consumption. This is clearly evident within the luxury tourism and hospitality sector, characterised by the growth of specialised holiday offerings. The launch of the Royal Tented Taj Spa (Taj Hotels Resorts and Palaces) at the Rambagh Palace in Jaipur (India) recreates the mobile palaces used by the Mughal emperors of the sixteenth and seventeenth centuries, with chandeliers, royal pennants and Indian love swings. When the element of activity is reduced to a more passive involvement in nature, the event becomes Aesthetic. A high degree of intensiveness is clearly evident within this activity, but has little effect on its environment such as admiring the architectural or interior design of designer boutiques. The six-storey glass crystal design of the Prada store in Tokyo conceptualised by the architects Herzog and de Meuron has become a showcase for unconventional contemporary architecture.

Death and How You Can Heal It

Death and How You Can Heal It Free Online Research Papers This note is for you, just for you, as i missed being with you every single day, seeing you grow with me. The way you used to smile at me every morning waving your wide spread arms. What havent we shared? Where have you gone? When i saw your face, i knew i was doing okay. The life that was to recede was brought back by you. Now youre gone. The day is not far. Ill be gone in no time too! Where have those days when you shrouded me when the storm blew everything up gone? Where have those days when you gave me all the warmth when i was stamped by all gone? Where have those days when you gave me a wide spread smile every morning gone? Where have those days when you gave me shelter during times of floods gone? Where have those days when we enjoyed the bliss of dancing in rain together gone? I am here, a thousand miles away from you. Broken heart. Those dark secrets that we shared, those conversations that only us and none were able to understand has gone by the wind. You cant make this any good, for youre taken; youre plundered from the very root. Those trucks, bulldozers and the people just din leave you here. Its so hard. I tried so fiercely, but nothing went well. I stood back holding my tears, seeing those imprint of your roots. Seeing you go so far and then you vanished in no time. I stood here for years unaccompanied, none to shroud, warm, or dance with me. Today i am 100 years old i believe, waiting to get my parts chopped to make oils, papers and cup boards. I am happy today for i am going to be no longer alone. Its time for me. I am happy today as i think about this. Those tears with which i stood still when they took you away, the warmth that i missed for years, the rain dance that never made me happy after you were gone, have all withered like dead petals now. And as i am chopped now, i again reiterate, i am gone too with the wind in no time! This wont change. They want us badly. I am taken in the truck. I go with them seeing the imprints of my roots. How much those deep roots have seen. Tears.Smile.Hug.What not? I look back to see if anyone is crying for me, and i just see a bright sun shine! And i was gone! Research Papers on Death and How You Can Heal ItThe Spring and AutumnHip-Hop is ArtPersonal Experience with Teen PregnancyThe Masque of the Red Death Room meaningsThe Effects of Illegal ImmigrationThe Hockey GameBook Review on The Autobiography of Malcolm XNever Been Kicked Out of a Place This NiceTwilight of the UAWMoral and Ethical Issues in Hiring New Employees

Concept of human rights and its role in the legal,moral and political Outline

Concept of human rights and its role in the legal,moral and political world - Outline Example Much more job is required to inject human rights and the voice of the migrants into the mainstream of making policy in this area. â€Å"The wider vision of human rights allows for consideration of the problems of hunger, poverty, and violence facing billions of people† (Clapham 2007). In their human rights vision, persons are endowed, by cause of their humankind, with certain basic and unchallengeable rights. Idea of human rights offer the vocabulary for arguing regarding which interests must prevail and how best to accomplish the ends we have selected. Human Rights dealing with contempt subjects on occasion have to balance the competing interests and benefits of the constitutional right to a fair trial and the require to protect. The aspect of human rights to privacy and confidentiality, or the need to be left to oneself, is inherent to every human being. This is more apparent in the areas of hospitalization, medical care and defense of patient records. It is proposed to first think the aspect governing Human Rights Act regarding attaining consent of the patients in medical study settings previous to accepting them for bio-medical or medical research use. â€Å"So far we have resisted the temptation to claim that human rights are about balancing individual free doms and the collective interests of the community. Such claims say very little about these rights as they melt away into the interests of the majority to live in peace and security† (Clapham 2007). The push of worldwide human rights rule is that curtailment of rights should be vindicated by reference to pre-existing rules that permit for proportionate action essential to accomplish a legitimate aim. It is seen from the theories and cases discussed above that public view is significant aspect which wants to be accepted by citizens, celebrities or otherwise. At the same time as a certain amount of accommodation and restraint wants to be offered to citizens in terms of human rights and respect for

H&M and their Blue Ocean and Red Ocean Strategy Essay

H&M and their Blue Ocean and Red Ocean Strategy - Essay Example This paper talks about a brief history of the company H&M and the strategies that it has used and is using that have contributed majorly to their growth and expansion. The paper focuses on two very different strategies, the Blue Ocean Strategy and the Red Ocean Strategy and their characteristics. It attempts to answer whether H&M really used the Blue Ocean Strategy or were they only able to utilize strategies in the Red Ocean. Anyone who is fashion-forward and fashion-conscious would certainly recognize the brand name H&M. Popular for selling and creating trendy pieces at an affordable price, it is no wonder that a lot of people choose to buy from the retail store. Created by Erling Persson in the year 1947, the company H&M had its roots back in Sweden as a fashion retail store that sold only women’s clothing. His first store was named Hennes, the Swedish equivalent of â€Å"hers†. Twenty one years later, the name was changed to â€Å"Hennes and Mauritz† after Persson purchased a hunting store located in Stockholm named Mauritz Widforss. The hunting store sold not only supplies for hunting, but men’s wear as well. It was only then that the store catered to both men and women’s fashion. Over the years, H&M continued to expand and opened numerous stores all over Europe. Their clothing line expanded to cater to men, women, teens, and children. H&M opened their stores in several countries such as USA, Canada, Dubai, Kuwait, Hongkong, China, and Japan. The fashion label will also open stores in Tel Aviv, Jerusalem, and South Korea by 2010. The company line also offers online shopping limited to countries in Europe namely Austria, Denmark, Finland, Germany, Holland, Norway, Sweden, and Swedish Finland. In the past, the H&M also featured one-time collections made by popular, well- known designers such as Karl Lagerfeld back in 2004 and Stella McCartney in the year 2005, and Viktor & Rolf in

Motivation Essay Example | Topics and Well Written Essays - 1000 words - 1

Motivation - Essay Example Although different motivational theories focus on improving employee performance, their approaches differ substantially. As a result, all the models have their unique similarities and differences. This essay focuses on the similarities and differences between Maslow's theory, Herzberg's theory and the Equity theory as theories that organizations use to motivate their employees. All motivational theories focus on improving employee performance in the job (Hoffmann, 2007). As the developers of these theories pointed out, every human resource department should aim at improving the employee satisfaction in order to improve their level of output. Although they propose on different approaches of achieving employee satisfaction, the reality is that their main goal is improving organizational performance through specific ways. They emphasise on different factors that lead to employee satisfaction. As these theories point out, employee satisfaction is the most essential factor in improving em ployee satisfaction in their work places. Increase in employee satisfaction increases their level output to a certain level. Actually, most of the theories insist on the need for the organization treating an employee as an asset. The models provide the criteria for increasing employees’ job satisfaction. ... Herzberg’s theory focuses on motivation hygiene. According to the theory, there are factors that in the workplace that cause employee satisfaction. Whenever an organization puts into consideration these factors and ensures that their full satisfaction, the result is increased employee satisfaction, which generally translates into highly motivated employees. Equity theory points out that the manner in which an organization distributes its resources largely determines the level of satisfaction of the employees. Fair distribution of resources on the organization leads to increased levels of job satisfaction while unfair resource distribution leads to low motivational levels. Therefore, a major similarity between the three models us their ultimate goals that focus on the employee satisfaction and subsequently increasing their levels of satisfaction. Despite their similarities however, the organizations these theories have a number of differences. One of these differences is the ap proaches proposed by every theory in motivating employees. While some of the theories insist on the organization as the main source of motivation, others insist on the employee as the main reason for employee satisfaction. Although some of the motivational theories focus on the growth of the employee as an individual, others focus on general employees in the organization (Hoffmann, 2007). What such theories do not differentiate well is that different motivational factors work different to different employees. Nonetheless, differences in the departments and the hierarchy that employees hold in an organization influence how different motivational factors affect their levels

New Media Technologies And News Production Essay

New Media Technologies And News Production - Essay Example On the other hand, families saw the need of sitting and watching the television after a day’s work rather than reading newspapers to acquire information. Additionally, the advancement in to the World Wide Web era gave birth to personalized consumption of information since it a was faster and more detailed way of news reporting. News production and the internet Moreover, the information transmission through the internet led to great cultural diversifications in the way of consuming news. The internet is a platform of free culture in that the information provided costs less or is free. Sequentially, the newspapers in the developed nations are unable to compete with the internet in terms of revenue accumulation. Undoubtedly, journalists who find themselves on the receiving end of losing their jobs because of the financial strain in the world today have implemented the use of blogging sites on the internet (Schubert, 2011:5). These blogging sites provide an avenue for the airing o f their views through cheap and reliable means (Stuart 2003:36). They do not find themselves answerable to any one except authorities of their lands of origin. Therefore, the internet has offered a way of bridging the professional gap from that of being unemployed to that of independence for practicing journalists across the globe. On the contrary, citizens have also had their fair contribution in reporting, as the internet offers a platform for posting photographs and amateur video footage on happening events. This is what citizen journalism entails (Greer & McLaughlin, 2010:1045).Once these pictures find their way to the internet, they give room for research where the researching on more facts surrounding the developing story may get to the public domain... This essay stresses that the media has a way of portraying protests and demonstrations by the public in a violent and the non-attractive way. Usually, they portray the demonstrators as those who have high traits of anarchy. This depicts the influence of the media in explaining the actual state happening events. However, governments have emphasized the need for positive reporting rather than negative reporting through the showing of disturbing images. Ideally, negative reporting may affect a country’s economy in that it may bring down a country’s attractiveness to potential investors. Modern day media forms should act as public relations features rather than weapons of ruining public image. Therefore, the media has a role to play in restoring public trust in institutions like the police force that have had the repute of violence and brutality to the public. This paper makes a conclusion that The transformed media has a critical place in the present society because many use it as a matter of the need to feel informed. In this regard, responsible journalism should be the foundation for any coverage of information intending to reach the public domain. Ideally, the media is a tremendously powerful tool that which can influence the society either negatively or positively. Subsequently, the transformed media should ensure that it is impartial and steers the society towards the right direction. Finally, the transformed media forms have defined the standards of living for many of the urban citizens since the reception and production of news is immense quality and class.

Ryanair Business Strategy: Internal and External Analysis

Ryanair Business Strategy: Internal and External Analysis Ryanair:  Case Analysis Report Introduction Ryanair, established in 1985, is considered the main instigators of the â€Å"low cost â€Å" airline carriers, creating a new niche in a market previously dominated by former national airlines such as BA. The company has grown to a position where in 2005 it has 15 bases and 150 aircraft operating throughout Europe, carrying thirty million passengers (see figure 1), with a five year target to increase this to seventy million (Ryanair 2007). This position has been achieved by creating a â€Å"no-frills† approach on price (Pettigrew et al 2002), which gave it a competitive advantage over the established airlines (Porter 2004, p.207 and Kotler et al 2004, p.407), although attempts to extend this to include charging for ice used in in-flight drinks (Creaton 2004, p.169) was rescinded after customer complaints. The objective of the business is to become Europe’s leading â€Å"low-cost† airline and first for customer service, the latter position which was first reached in 2002 according to independent sources (see appendix A, figure 3). Similarly, the company also seeks to maintain value growth for shareholders. External Analysis Liberalisation of the airline industry in the 1970’s opened up the industry to new entrants and a new business model. Being one of the â€Å"first movers† in this new sector (Faulkner and Campbell 2006) Ryanair has taken advantage of the growth opportunities offered by creating a â€Å"low Cost† model based on the successful Southwest Airline (2007) strategy. This move has been partially responsible for increase in passenger numbers using UK airports in the last three decades (see table 1), with expectations of a threefold increase by 2030. Table 1 Airline passengers Year Passengers (m) 1980 50 1990 90 2000 180 With former eastern bloc countries converting from communistic to democratic political structures this growth is set to continue, providing the business with further opportunities (see appendix A, figure 4). Many of these former Baltic States have now joined the EU, which also provides Ryanair with the opportunity of expanding its destination network. However, the industry growth has also seen new competitors enter this niche market, including EasyJet, BMI, Virgin express and Aer Lingus. To maintain its competitive advantage the two major players have sought to consolidate their position by strategic acquisitions. In this area Ryanair, with its successful acquisition and integration of the â€Å"Buzz† lo-cost carrier, has been more successful that EasyJet’s experience when acquiring â€Å"Go.† Although the major airlines such as BA have responded to threats from Ryanair, to date these have not proved successful. The creation of this niche industry sector has also led to significant changes in the consumer’s perception (OConnell, J., and G. Williams 2005). Demands for cheaper fares has increased as prices have fallen, and the consumer perception and lifestyle has changed with regard to types of holidays has expanded rapidly, with weekend breaks and formerly unknown destinations increasing in popularity. Ryanair has also made full use of the advances in technology and digital processes within its â€Å"low-cost† business model. It was one of the first â€Å"low-cost† airlines to recognise the changes in the consumer buying habits resulting from these technological advances, using this diffusion to improve its services, encourage further consumer change and continue cost reduction advantages (Johnson et al 2007, p.481). Evidence of this can be found in the business move to paperless tickets, with more bookings being made through the Internet and, more recently, a move towards automated booking–in procedures at the airport, reducing the need for expansion of human resources to meet demand increase. At the same time, this technology use also helps Ryanair to maintain one of its key corporate objectives, which is to return success and value to the shareholders. There are two other external factors that impact upon the business and affect the determination of strategy. The first is environmental issues., which includes the concerns expressed by consumers and governments relating to the impact that air travel growth has upon the local communities and infrastructure and the second is the natural environment, where businesses are now required to consider the impact that their operations have upon issues such as climate change. The second issue is in the increase of legislation, particularly from the EU. In this respect Ryanair operations have to comply with regulations in terms of fair competition, which affects mergers and acquisitions and unfair practices, and targets set by the EU in relation to emission reductions required to address climate change.[PL1] Internal Analysis As Lynch (2006) and Faulkner and Campbell (2005) stated within their respective researches, for organisation’s such as Ryanair, who have targeted their strategy at a â€Å"low-price† product, it is imperative that, to maintain competitive advantage, who submitted that to achieve and maintain low price in the market place, the business itself had to be structured in a way that provided a limited cost base throughout all aspects of the business, in order to retain a profitable result. Porter (2004) suggests that this cost reduction process has to be communicated throughout the value chain (see appendix B, figure 6). Michael O’Leary, and the Ryanair management team have strived to achieve this position through a number of measures. Use of resources Ryanair makes good use of its resources. For example, all of the aircraft are of one design, the Boeing 737-800 series. This has several positives. Firstly, the company receives a discount from Boeing. Secondly, It reduces costs in terms of maintenance and training. In the latter case, unlike EasyJet, which has to train pilot and cabin crew to operate on a number of different aircraft designs, Ryanair’s staff only have to familiarise themselves with the one. Similarly, the turnaround of aircraft at destinations is quick and efficient, thus reducing unit cost. Human resources Despite the number of routes operated and the logistical problems of running a business of the magnitude of Ryanair, the company operates with a minimalist attitude towards head office, admin, aircraft and maintenance crews and administration staff. At the end of the 2005 financial year the business employed around 2,800 personnel, a figure which has changed very little over a five-year period. All of the Ryanair employees are expected to multitask. For example, cabin crew are required to clean cabins and remove rubbish between flights. Technology As mentioned earlier, Ryanair computerises as many services as possible. With Internet booking, paperless tickets, automated booking-in processes and many other parts of the operations being streamlined in this manner, this ensures that production and other costs remain low. Destinations Another imp0ortant aspect of the Ryanair cost reduction strategy is the concentration of its destinations into secondary rather than primary airports. Landing fees and other charges at these airports is substantially lower than the main airports and, even with the â€Å"sweetners† paid by Ryanair, the unit costs per passenger of flight into these destinations remains cheaper. Travel format Finally, the product itself has been simplified. There is only one class on a Ryanair flight and no pre-booking of seats. Furthermore, virtually everything but the seat costs. This includes drinks, meals and the other retail products available on board, with even free levels of baggage is limited. The success of this strategy can be evidenced when comparing the met profit margin of Ryanair with other carriers. The following data, taken from the various organisation’s websites and financial statements show the differnce (see table 2 below): Table 2 Net profit percentages Company Percentage Ryanair 17.81% EasyJet 7.98% British Airways 7.28% Diagnosis of current challenges However, like all businesses, Ryanair is not immune from challenges as it moves into the future. From the analysis of the business operations it is apparent that these challenges and threats will come from five main areas (appendix A, figure 4). Competition As mentioned earlier, with the emerging democracies within Europe, together with the regional and global harmonisation of competition rules, Ryanair is likely to find increased competition developing from these areas within the next few years to a decade. With the increased market place and, as can be seen from the share of the market that low cost airlines have (see figure 2), there is ample scope for new competition. The discussions about the â€Å"open skies† agreement between the EU and US (Milmo and Gow 2007), if these come to fruition, will also pose a threat as it creates a potential for US airlines to enter the industry sector. These actions could adversely affect the business continued financial success. Consolidation and growth There has already been some consolidation within the sector. It is likely that this will continue for the foreseeable future, and this could pose a threat to Ryanair’s dominant position. Furthermore, the corporations own growth pattern could impact negatively upon profitability. Despite growth attracting economies of scale, it can involve additional costs that threaten efficiency (Creaton 2004, p.250). Political intervention There are three main aspects of political intervention that are like to affect Ryanair in respect of its future development within Europe. The first of these relates to the EU’s competition laws, which is an area where Ryanair has come into conflict with the commissioners in terms of payments being made to secondary airports and other similar issues (BBC News 2004). The second is the threat by the EU to reduce or eliminate the subsidies given to the sector, worth an estimated  £6 billion annually (Bized 2004). This includes report, this VAT, Landing and Fuel tax benefits. The removal of these benefits will have a significant impact upon profitability. The third issue is the EU intention to force budget airlines to pay compensation for cancellations, which is not done at present. Environmental issues One of the major issues is the environment. Following the EU adoption of the IPCC[1] report recommendations, focus has been concentrated upon setting emissions targets for airline industry player, with stringent targets being set (see table 3). Future strategic options All researches promote the need for corporations to ensure corporate strategy addresses future challenges (Lynch (2006) and Faulkner and Campbell (2006)). In Ryanair’s case, it is suggested there are three strategic options that could be adopted (see appendix C, figure 7). Low price – low added value The aim of this strategy is to achieve the lowest price by a process of continually reducing the additional elements that attach to the service. For example, in terms of the budget airlines, from the consumers’ viewpoint this has meant reducing the facilities offered in-flight, such as changes to the quality of seating, increasing the seating capacity on the aircraft and reducing choice of services that involve human resources, such as hot meals, snacks and drinks. For the business is requires a continual drive to continue cost reduction throughout the value chain. Low price The intention of the low price strategy per se it to achieve reduction in the cost of fares, whilst retaining the consumers’ perception of the value of the product. To implement this strategy means that the business will need to seek cost reductions in areas other than those that directly impact upon the quality of the in-=flight service provided. This could be achieved by the further use of technology to automate in additional areas of the operational processes. Focused differentiation A strategy if focused differentiation is intended to set the business product apart from that of its competitors. Price can be used in the differentiation process, but in this case it needs to be inclusive with other elements that make the product unique. Evaluation of strategic options Following an evaluation of these strategic options, using the criteria recommended by Rumselt (see appendix D, figure 8), the following is an outline of the results that this produced. Option 1 – Low price – love value added This strategic option is consistence with the policy that Ryanair has followed in the past and is in accord with the previous intentions of the business strategy, which has been to reduce price at the cost of services, in other words achieving a â€Å"no frills† situation. However, it would seem that Ryanair would find it difficult to further reduce the level of service provided to its customers and it is unlikely that this approach would secure its market position. Option 2 – Low price Low price, as with option one, is in line with the business existing strategy. However, from the analysis of the internal situation at Ryanair, it would seem that there are limited options in terms of reducing existing resources, particularly if the business wishes to maintained a sustained growth programme and market share. Furthermore, it is not in accord with external trends, which indicates that consumers are becoming more discerning and the political arena more concerned with the consumers’ rights and environmental costs. Option 3 – Focused differentiation Focused differential, which could still include low price, would also be consistent with the Ryanair strategy. The differential of â€Å"low price, no frills† has been the core differential upon which the business has promoted itself previously. However, with other competitors entering the market place, that differential needs to be extended to other areas. In summary therefore, it is felt that the focused differentiation option would be most appropriate for the business future and will assist it to retain and improve its competitive advantage. Overview of selected strategy The core elements of the proposed â€Å"focused differentiation† strategy being proposed will be threefold. Free flights An aggressive strategy aimed at achieving free flights to be pursued. This can be achieved by seeking third party turnover to replace the ticket cost. For example, the business could introduce sponsoring, where travel and venue destinations, such as holiday locations, theme parks and local tourist boards pay for flights. Similarly, in-flight facilities could be introduced, such as Internet shopping, gambling and pay to view telephone. Furthermore, other services such as car rental and insurances could be used to cover the lost ticket revenue. Consolidation The business should be looking to make acquisitions, particularly with organisations within the Eastern European countries that have recently joined the EU. This enables the business to achieve market growth and maintain its dominant position. It also reduces the future competition. Aircraft fleet Fleet replacement is an area that Ryanair has concentrated upon in the past. In the future, in addition to discounts, this should be linked to conditions that ensure the fleet includes the latest environmentally friendly specifications, with aircraft being regularly upgraded as part of the purchase options. Implementation plan To enable the selected strategy to be implemented, several courses of action need to be undertaken. Short term Moves towards a â€Å"free-flight† position can be commenced within the immediate future, with the management and marketing departments of Ryanair discussing this concept with potential sponsor from the commercial leisure world, as well as tourism boards within the region and in specific destinations. Medium Term In the medium term two actions required for the strategy can be undertaken. The first of these is the gradual refits that will be required to aircraft to include the various new technological facilities that have been recommended. The second action would be to assess the potential market players to ascertain which, if any, would provide the business with a strategic fit for expansion of its market reach within the region. Long term Contracts with Boeing need to be re-negotiated to ensure that environment related conditions are included as an inherent part of the purchase process for replacement aircraft. Conclusion There is no doubt that Ryanair faces a number of key challenges in the future. To ensure that the business can successfully deal with the changes these challenges present, it is important that the future strategy is sufficiently robust to be able ensure that the business retains its competitive advantage and profitability levels. The aggressive strategies recommended within this analysis study are designed to achieve this objective. The â€Å"Free-flight† with added services, albeit being paid for, will maintain the unique and differentiated service that the Ryanair brand has become known for. Bibliography BBC News (2004). Ryanair faces new payment probe. Retrieved 17 May 2007 from http://news.bbc.co.uk/1/hi/business/3458423.stm Bized (2004). Low Flying Fares: An End to Cheap, No Frills? Retrieved 27 July 2007 from http://www.bized.co.uk/current/leisure/2003_4/010304.htm Brassington Frances and Pettitt, Stephen (2006). Principles of Marketing, 4th edition, Pearson Education Ltd. London, UK Channel 4 News (2007). If you care about the environment, you should fly Easyjet. Really? Retrieved 16 May 2007 from http://www.channel4.com/news/articles/society/environment/factcheck+how+green+is+easyjet/509642 Creaton, Siobhan (2004). Ryanair: How a Small Irish Airline Conquered Europe. Aurum Press Ltd. London, UK. De Groote, P.D (2005). The Success Story of European Low-Cost Carriers in a Changing Airworld. GaWC Research Bulletin 174. Retrieved 27 July 2007 from http://www.lboro.ac.uk/gawc/rb/rb174.html Doganis, Rigas (2000). The Airline Business in the 21st Century. Routledge. London, UK. Faulkner, David and Campbell, Andrew (2006). The Oxford Book of Strategy: A Strategy Overview and Competitive Strategy. New ed. Oxford University Press. Oxford, UK. Haslam, Chris and Ungoed-Thomas, Jon (2007). Ryanair denies baggage ‘scam’. The Times. London, UK. Johnson, Gerry., Scholes, Kevan and Whittington, Richard (2007). Exploring Corporate Strategy. FT Prentice Hall, Harlow, UK. Kotler, Philip. Wong, Veronica., Saunders John A and Armstrong, Gary (2004). Principles of Marketing, 4th European edition, Pearson Education Ltd. London, UK. OConnell, J., and G. Williams (2005). Passengers Perceptions of Low Cost Airlines and Full Service Carriers. Journal of Air Transport Management, 11: 259-272. Porter, Michael E (2004). Competitive Strategy: Techniques for Analysing Industries and Competitors. The Free Press. New ed. The Free Press. New York, US. Press association (2007). Budget airline offers low cost New York flights. Retrieved 17 May 2007 from http://www.which.co.uk/reports_and_campaigns/travel_and_leisure/reports/holiday_advice/Flights/zoom_flights_news_article_557_112479.jsp Report (2007). The Environmental Effects of Civil Aircraft in Flight. Royal Commission of Environmental Pollution. Retrieved 29 July 2007 from http://www.rcep.org.uk/avreport.htm Ryanair (2007). About us. Retrieved 14 May 2007 from http://www.ryanair.com Southwest Airlines (2007). About SWA. Retrieved 28 July 2007 from http://www.southwest.com/about_swa/airborne.html Stragler, Joos (1999). Current issues arising with airline alliances. Retrieved 17 May 2007 from http://ec.europa.eu/comm/competition/speeches/text/sp1999678_en.html Appendix A – external environment Figure 4 Pestel analysis Political Airline liberalisation Extension of democracy in EU Open skies policy Economic Internal financial performance Disposable income Abolishing of international tariffs Competition Acquisition Social Consumer attitudes Brand image Lifestyle and travel changes Technological Automatic booking in systems Online activity Change in consumer buying habits Environment Investor added value EU and international environment concerns Legal issues European legislation Environment regulations Competition rules Figure 5 Opportunities and Threats Opportunities Threats Growth of network Increased competition Growth of passenger numbers Industry consolidation Maintenance of cost reductions Political intervention Continuing price reductions (free?) Environmental issues Expand cooperation between â€Å"Low cost† carriers Further acquisitions Appendix B – Internal environment Figure 6 Value Chain Source: Porter (2004) Appendix C – strategic options Figure 7 The strategy clock Source: www.marketing teacher.com Appendix D – evaluation criteria Figure 8 Rumelts evaluation criteria Consistency Are the external strategies consistent with (supported by) the various internal aspects of the organization? You must examine all the various functional and internal management strategies employed by the organization and compare them with the external business strategy. Consonance Are the strategies in agreement with the various external trends (and sets of trends) in the environment? To answer this questions, you need to look at all the major trends that impact the selected strategy both positively and negatively. Feasibility Is the strategy reasonable in terms of the organizations resources? Money and capital Management, professional, and technical resources Time span Advantage Does the strategy create and/or maintain a competitive advantage? Resources Skills Position Source: Johnson et al (2007, p.593) 1 Footnotes [1] Intergovernmental Panel on Climate Change [PL1]1