Essays on Price War

2017-01-05

Five-Force Analysis 3 Key Success Factors of the Company 4 SWOT-analysis 5 Recommendations 6 III. Conclusion 7

Introduction

This paper is devoted to the strategic analysis of the company Ryanair. It is an Irish low cost airline that is well-known in Europe. This company operates since 1985 and offers flights to around twenty seven different countries. There are no any incidents that could be associated with human victims during the whole company’s activity. Ryanair has become a truly budget airline in the 1990s. It has abandoned the business class, expensive airports and long-distance flights. As a result, in 1995 ...

Price wars often tend to occur in an environment where there are multiple substitutes available for a particular product. This problem is of significance especially for a new company that is trying to introduce a new product in the marketplace and is faced with price wars with rival competitors. When confronted with the challenge, it is only the corporation that will be able to make the best products and services for its customers for the best available market price that will win the war cost challenge (Bertini, 2014). According to van Heerde, Gijsbrechts, & Pauwels (2008), price wars in the ...

Abstract

This case presents a classic duopoly situation. Two shipping firms are in the midst of a price war over the market of containerized shipping to and from a small Caribbean Island. The case presents a table of contributions to both firms, which depend on their respective prices. The tables of contribution serve as a major basis by the concepts of price leadership; prisoner’s dilemma and Nash equilibrium are explored. The main issues addressed in the case include competitive dynamics, international case, game theory, pricing, pricing leadership, and diversity case. The setting of the case is the transportation sector. ...