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Internationalization Strategies Ryanair vs. LG Electronics This presentation analyzes the internationalization strategies of Ryanair (airline industry) and LG Electronics (consumer electronics industry) and highlights their approaches to global success.

A white airplane in the sky Description automatically generated.

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[image] Plane on tarmac. Ryanair Market Entry Mode.

Target Market RYANAIR. Budget conscious travellers consisting young individuals travelling for a short haul flights within Europe, either for leisure or for business purposes. CATERS PASSENGERS PLACING GREAT IMPORTANCE ON PRICE As per survey at least 65% of passengers travelling on loW COST carrier did not look at any other carriers while choosing the bookings fee. Business traffic consists of self-employed and employees of small and medium sIZE enterprises. However, the large corporation still favour OTHER INCUMBENT HIGHT COST CARRIERS..

[image] Digital financial graph. LG electronics market entry and Target Market.

RyanAir Business Model Analysis LOWCost model. Ryan mean value proposition is offering low-cost air travel for price sensitive traveller. It’s low frills approach allows it to cater to price sensitive travellers but along with the good travel experience. ( Box and Byus, 2007) It prioritise efficiency to maintain costs low and cutting down on amenities such as food, drink, entertainment, usually utilisation of secondary airport and direct selling. No frills approach serves the passengers in short haul flights. In contrast to incumbent airlines that also operate business classes, serve meals and drinks in return it increases staff efficiency and cost by saving time. (Hunter, 2006) Standard turn around time of 25 minutes in comparison to industry average of 45 minutes due to slot availability at secondary airports. (Barrett, 1999) The absence of boarding cards provide for quicker check-in . Passengers would early preventing the delays in a rush to to secure the best seats because of the unreserved seats. per airport decreases its fixed operating costs. However, its charges for additional check Baggage for seat selection as well as on board services. It also generates revenue through ancillary services such as providing priority, boarding as well as in-flight purchases. It operates a single kind of aircraft leading to standardization and does not incur overnight hotel charges for staff due to short haul flights..

Business Model LG Electronics Innovation as per market Needs.

International Marketing Strategy of Ryanair. Product Adaptation- Product planning is the process by which an airline determines what features to provide in each of the markets in which it operates. (Shaw, 2016) Ryan air’s no frills point to point short haul flights within Europe serves budget conscious travelers. Reduction of cost by decreasing basic amenities and charging for additional services. Revenue from additional checked in baggage, seat selection and inflight services. Place (Distribution) Choice between direct selling through websites or using intermediaries like tour operators , travel agents. Airlines have been using intermediaries as channels of distribution for many years and they charge commission for the services Airlines used to have their sales offices in which global distribution systems under computer reservation systems had a very dominant position. However in the recent time the low-cost carriers have significantly changed trend by directly selling in a straightforward manner, bypassing the GDS system, avoiding high fees and commission by distributing their products directly through their websites. (Camilleri, 2018) Having a direct contact with the consumers in Europe, Ryanair the leading low-cost carrier is directly selling their products through their website. Ryanair in 2017 announce that it won’t take any partnership with GDS and encouraging its customers to make ticket purchasing directly through its websites..

Pricing Airlines follow more simple dynamic pricing structure in a way the fare of each flight varies as per demand for that particular flight . The fair usually starts low in advance and increasing as the departure date approaches. LCCs try to reduce their cost to increase the competitiveness on short haul routes due to budget conscious customer base. Ryan air follows policy to position itself as cheapest possible option to gain market share. ( Box and Byus, 2007) Promotion Ryanair follows aggressive promotional campaigns displayed through TV, internet and social media. The feature of low price is highly emphasised to attract more consumers. Promotional Strategy focusing on controversial issues like Brexit to launch low price campaigns became viral. Refer image. Viral marketing is becoming useful for airlines to widely spread their brands in short notice. (Seo & Park, 2018).

International Marketing Strategy - LG electronics Product Focus on high quality products with high market visibility. Product portfolio includes various segments from automotive parts, e-commerce solution to home appliance segments that includes vacuum cleaners, washing machines, air purifiers, microwave and air-conditioners with home entertainment system, and television screens. Recent time as the increasing awareness towards sustainability, it tries to manufacture products with low carbon footprint to stand out from competitors. According to LG’s product strategy it constantly updates and launches of new models as per the consumer preferences By consistently releasing new features and functionalities, LG upholds its market advantage and strengthens its reputation as a high-quality and innovative brand. (LG Electronics, 2024) Pricing strategy LG pricing strategy differentiates in terms of the target market. The focus for developing countries is a value for money by providing the most essential features at competitive prices. So it has a wide variety of products ranging from products for budget conscious consumers to premium buyers. It offers diversity of products, making sure or ensuring that there is something for every budget. For example, when LG initially introduced products in India, it offered them at higher prices, but however, it quickly adjusted the prices as per Indian consumers..

Place LG distributes its products through multiple channels, which includes retail stores, electronic stores, online platforms, and authorised dealerships. LG is known for its global distribution partners and authorised retailers to ensure widespread availability and accessibility of its products. The main strategy is to ensure that the products reach to the consumers in both urban and rural areas. (Park, Y., Shintaku, J. and Amano, T., 2010) Promotion Multi-Channel Marketing: Online: Website, social media, SEO. Offline: TV commercials, print advertising, sponsorships Marketing campaigns as per local values and customs to promote localization and resonate with local sentiments. LG’s marketing campaign based on influencer marketing partnering with global influencers like Willow Smith, Cody Simpson, and Jenny Park who embody the "brave optimist" spirit. (LG launches ‘Life’s Good’ campaign, spreading a message of optimism to customers worldwide, 2023).

Similarities in lg electronics and Ryanair internationalisation strategy.

Key differences in marketing strategies and business models Differences.

Key differences in marketing strategies and business models Differences.

Recommendations To improve business Models. Ryanair Enhance customer service and onboard amenities to attract more passengers and to improve overall service reviews. Form partnerships with other airlines to expand route networks and reach new customer segments outside Europe focusing on specific continents. Collaborate with traditional airlines to offer connecting flights, especially beneficial for business travellers. Partner with budget airlines in different regions to increase operational efficiency and widen market reach. Bundle travel packages with ancillary services like car rentals and hotels through partnerships with travel agencies. Implement sustainable practices such as investing in fuel-efficient aircraft to reduce environmental impact and enhance brand reputation and customer services reputation..

Annual report (2023). https://investor.ryanair.com/wp-content/uploads/2023/07/Ryanair-2023 -Annual-Report.pdf (Accessed: March 13, 2024). Ryanair: The lowest cost airline in Europe. - Technology and Operations Management (2015). https://d3.harvard.edu/platform-rctom/submission/ryanair-the-lowest-cost-airline-in-europe/. BBC News (2019) 'Ryanair rated ‘greedy and arrogant’ by customers,' BBC News, 22 August. https://www.bbc.co.uk/news/business-49433807. LG Electronics (2024). https://www.lg.com/global/corporate-info/ (Accessed: March 13, 2024). Barbot, C. (2006) 'Low-cost airlines, secondary airports, and state aid: An economic assessment of the Ryanair–Charleroi Airport agreement,' Journal of Air Transport Management, 12(4), pp. 197–203. https://doi.org/10.1016/j.jairtraman.2006.04.001. Dziedzic, M. and Warnock-Smith, D. (2016) 'The role of secondary airports for today’s low-cost carrier business models: The European case,' Research in Transportation Business & Management, 21, pp. 19–32. https://doi.org/10.1016/j.rtbm.2016.07.002. Barrett, S. (1999) 'Peripheral market entry, product differentiation, supplier rents and sustainability in the deregulated European aviation market – a case study,' Journal of Air Transport Management, 5(1), pp. 21–30. https://doi.org/10.1016/s0969-6997(98)00033-7. O’Connell, J.F. and Williams, G.M. (2005) 'Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines,' Journal of Air Transport Management, 11(4), pp. 259–272. https://doi.org/10.1016/j.jairtraman.2005.01.007. Ramaswamy, K., 2007. LG electronics: Global strategy in emerging markets (pp. 1-12). Thunderbird School of Global Management. file:///Users/sayiamsingla/Desktop/[PD]%20Documentos%20-%20LG%20Electronics%20in%20emerging%20markets.pdf.

Park, Y., Shintaku, J. and Amano, T., 2010. Korean firm’s competitive advantage: localization strategy of LG Electronics. University of Tokyo: MMRC Discussion Paper Series, 292 https://merc.e.u-tokyo.ac.jp/mmrc/dp/pdf/MMRC292_2010.pdf https://www.homeappliancesworld.com/2023/07/24/using-big-data-lg-offers-a-more-and-more-efficient-customer-experience/ Box, T.M. and Byus, K. (2007) 'Ryanair (2005): Successful Low Cost Leadership,' Journal of the International Academy of Case Studies, 13(3), p. 65. https://www.questia.com/library/journal/1P3-1291468851/ryanair-2005-successful-low-cost-leadership. Shaw, S. (2016). Airline Marketing and Management. (Seventh ed.). London and New York: Routledge. https://doi.org/10.4324/9781315566436 Hunter, L. (2006) 'Low cost airlines:,' European Management Journal, 24(5), pp. 315–321. https://doi.org/10.1016/j.emj.2006.08.001. Malighetti, P., Paleari, S. and Redondi, R. (2009) 'Pricing strategies of low-cost airlines: The Ryanair case study,' Journal of Air Transport Management, 15(4), pp. 195–203. https://doi.org/10.1016/j.jairtraman.2008.09.017. Bhatt, P.R. (2003) 'Market innovative Strategy a Case of LG Electronics,' Vision, 7(2), pp. 87–96. https://doi.org/10.1177/097226290300700207. Camilleri, M. A. (2018). Travel Marketing, Tourism Economics and the Airline Product. Springer. https://link.springer.com/book/10.1007/978-3-319-49849-2 Seo, E.-J., & Park, J.-W. (2018). A study on the effects of social media marketing activities on brand equity and customer response in the airline industry. Journal of Air Transport Management, 66, 36-41. Retrieved from https://doi.org/10.1016/j.jairtraman.2017.09.014 LG launches ‘Life’s Good’ campaign, spreading a message of optimism to customers worldwide (no date). https://www.lgcorp.com/media/release/26669..