Case Study: Finnair

This Case Study details the rapid growth of easyJet which started operations in November 1995 from London’s Luton airport. In two years, it was widely regarded as the model low-cost European airline and a strong competitor to flag carriers. The company has clearly identifiable operational and marketing characteristics, e.g. one type of aircraft, point-to-point short-haul travel, no in-flight

The new Customer Relationship Management (CRM) will build a connected, collaborated, and integrated customer facing organization. CRM will have simplified features and a utilize cloud technology to support multiple departments within the organization. CRM users will be able to:

Therefore, while the amount of customer data is increasing steadily, and customers are becoming more sophisticated, it becomes crucial to be able to harness the value of customer data, and CRM systems, in this regard, are the solution.

Recently, there have been many problems across Europe that may affect the number of passengers across Europe. Firstly, this is about the political friction between the countries such as Germany and Turkey. Similarly, the political troubles, including the rise of the far-right parties can be considered a major barrier towards fast development.

To be successful in an increasingly competitive environment, Ryanair has to be more adaptive and innovative than ever before in providing superior quality service. Ryanair should develop its market globally. Ryanair resources and capabilities combined them to make more competences in low cost strategy to enjoy profit margin. However, the current strategy focuses on the benefit of a cost leadership generic

- To identify the number of costumers who are ether satisfied or not . satisfied with the service

Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline services between Ireland and the United Kingdom. Ryanair’s strategy is based on providing a no-frills service with low fares to stimulate demand from budget-conscious travelers. The firm wanted to enhance its revenue through ancillary services offered in conjunction with its core airline services. Ryanair’s business level strategy is cost leadership. Although the firm faces weaknesses and threats, their strategy has created a competitive advantage. Ryanair’s competitive advantage will weaken over time due to vulnerability to fuel prices, ancillary charges, low employee satisfaction and their negative brand image.

Ryanair done very well by manged to cope quickly to technological change. The increase power of internet in the last two decades, company developed a strong electronic market through internet and they are the Europe’s leading airline company to date (Ryanair, 2000).

The final strategic issue is customer service. With such low switching costs, customers can easily find other airlines with which to do business. In today’s economic climate consumers are hunting for the cheapest price, unless loyalty can be developed through quality customer service. These areas for attention include on-time arrivals, safety image, and bag handling.

- Political stability: Egyptair continues to make massive losses as the carrier and Egypt struggle to recover from the Jan-2011 revolution which resulted in the airline moving into crisis mode for two months when it was forced to temporarily ground up to 40% of its fleet and as 80% of revenue evaporated. The instability of the political situation which we could say its improving gradually this year had been one of the major risks that's facing Egyptair.

Customer Relationship Management (CRM) is a tool that helps track, manage and supply information about customer’s interactions with an organization to help contribute to customer satisfaction that leads to customer loyalty. Additionally, CRM programs provide tools and applications designed to target their efforts on the most profitable customers, target new potential customers, and generate sales and maintain relationships with customers contributing to a greater market share.

In 1985, the Ryan family founded Ryanair to provide airline services between Ireland and the United Kingdom. Ryanair’s strategy is based on providing a no-frills service with low fares to stimulate demand. Ryanair’s business level strategy is cost leadership. Although the firm faces weaknesses and threats, their strategy has created a competitive advantage. Ryanair’s competitive advantage will weaken over time due to vulnerability to fuel prices, ancillary charges, low employee satisfaction and their negative brand image.

The airline industry is one of the fastest-changing industry sectors in the world today (Kernchen, 2004), Changing market demography include empowered customers, new distribution channels constantly forcing airlines to adopt and improve their operations and business models (Shaw, 2011; Kossmann 2006). At the same time the airline sector is one of the mostly affected industry by the technological advancements, airline companies should use this opportunity to gain competitive advantages over rivals as a way of value creation to its customers. Advances in the field of Information and Communication Technologies contributed to the empowerment of customers who became more experienced, sophisticated and striving for individual and independent products (Buhalis & Law, 2008).

In order to sustain among other competitors, Ryanair Holding should evaluate their strategy which is low cost business level strategy in the long run. This strategy alone is not a basis for competitive advantages, nor are advantages sustainable over time. This is because it can only be regard in helps Ryanair to increase its revenues or to lower costs. The firms also derive a temporary advantage because competitors quickly imitate or substitute for it as things that an organization own. Since economy is further growing, Ryanair faces a lot of challenges in maintaining their revenue growth while keeping ticket prices low. Thus, it is essential for Ryanair to narrow down and clarify their core competencies of innovative cost cutting and alternative

The merging of the customer data from sales and the call center interactions has created the more informed interactions with the customer (Petersen, 2004). The concept rang with the user organizations and mergers and acquisitions created a host of software that the vendors claimed to have an integrated set of capabilities that became known as customer relationship management (Petersen, 2004). Companies wanted to learn more about each and every individual customer and use the information to effectively take care of and manage their relationships, and yet increased customer satisfaction and profit.