Presented By: Levan Chkhaidze

George Khutsishvili

Ana
1. Product Feature
Matrix
 3.Aggregate Market Factors
For Our Industry
 As we know aggregate market
factors impact the potential
market attractiveness.
 There are six of them:
5. Category size
6. Market growth
7. PLC
8. Sales Cyclicity
9. Seasonality
10.Profits
 Category Size
 Category size is an important determinant
of the likelihood that a product will
generate revenues to support a given
investment.
 In our example Ryanair category size, was
small because of little market potential and
due to the BA existence thus it does not
provide huge opportunities for company.
Also If we take into consideration the whole
Great Britain air business industry than it
becomes unattractive for such companies
like Ryanair because of too tight
competition and limited recourses.
 Market Growth
 As we know market growth is
a key market factor
advocated by various
planning models.

 In our example, The most

important thing was not a
market growth itself but
rather brothers future
intentions about expansion.
May be Ryanair was not in
ideal situation but it is clear
that demand on Air service in
increasing from day to day
basis, thus it is providing
 Product Life Cycle ( PLC)
 Product life cycle is a clear indicator about
at what stage companies product or
services are.

 Ryanair is of course at introductory phase,

when category size as well as portion of
the market are small. Sales volume is not
very high either. Growth rate is also weak
and market attractiveness is not desirable,
but everything starts with something and it
need development to reach the peak and
generate revenues.
 Sales Cyclicity
 Many industries experience
substantial variations in
demand due to peaks and
valleys of GDP and other
economic dimensions. Air
business is not an
expansion.

 Therefore Sales Cyclicity

will undoubtedly influence
and effect such a little
company as Ryanair. As we
all know during some
economic recessions price
of Air fuel is increasing in a
rapid change which is
harming the whole industry
 Seasonality
 Seasonality refers to some
trends which occurs
between some cyclicity
periods.

 It is difficult to say
something about Air
business Seasonality
because demand is always
but little bit different
according to seasons. There
was not much information
about Ryanair’s seasonal
sales and therefore it is
difficult to draw up some
conclusions about it. But In
our opinion it would be
great if company will offer
some extra motivating
 Profits
 Profits are the very
thing for which
every particular
company is striving
to achieve.
 At first glance
profits for Ryanair
won’t be as high as
for example for BA,
but attentive
implementation of
correct marketing
strategy and
correct industry
analysis may give
 4. Potential Of New
Entrants
 Answer can be divided in two parts; before and after
1978.

 Airline industry was not really attractive for

entrance. And there were rational reasons for this:
government totally controlled this business, and
owners were not free to run their own business in a
way that they wished. Market was government-
mandated monopolies or near monopolies, and entry
barrier was very high.

 Particularly there was no competition. Also fuel and

oil takes 19 % share in expenses, which very high,
and in that period OPEC raised the price of jet fuel,
and the ensuing recession cut demand for air travel.
 After: But industry whole situation changed after
1978. When U.S congress approved the
deregulation of the domestic U.S airline industry,
pricing, route scheduling, entry, and exit were
freed up dramatically. As case shows 22 new low
cost carriers emerged in the market. But most of
new airlines failed however. This influenced
European airline market very much, they also
referred to deregulation and abolished pooling
arrangements, price fixing, and government
subsidies. The market was intended for free
movement of goods, persons, and services. So all
these changes made this market attractive to
Thanks For Attention!!!