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Baldor Electric Company markets, designs, and manufactures industrial electric motors, drives, and generators. It has recently been announced that ABB will be acquiring Baldor in an all cash deal of 4.2 billion USD (1.1 Billion $ Debt included)


Baldor Electric was founded in 1920 by Edwin Ballman and Emil Doerr. The name of the company was derived using part of each of their names. In 1967 the Company's headquarters were moved from St. Louis, Missouri to Fort Smith, Arkansas.

On January 31, 2007, Baldor Electric acquired the Dodge and Reliance Electric brands from Rockwell Automation for 1.8 billion dollars USD.

* Lowest fares
* No Frills and simple processes
* Large brand awareness
* Clear offer
* Innovative strategies on cost cutting
* Quick turnaround time



The current strategies of Ryanair are focused on maintaining the company’s cost leadership position in the market. The airline has a fleet that is composed on Boeing 737, one of the most widely-use aircraft today. Because of fleet commonality, Ryanair is able to cut on costs in obtaining spares and maintenance services. Ryanair also cuts the costs on out of services providers by engaging in a multi-year contracts at fixed prices. In order to cut the costs of airport charges, Ryanair selects secondary and regional airport destinations, which are not as congested as the main airports. In order to control employee compensation costs, the firm implements a performance related pay structure. Although the company provides lower labor costs, the employees can earn additional pay or remuneration base on their performance. Ryanair also has low marketing costs.



Strategies Regarding Diversification

Mergers and Acquisitions

Mergers and acquisitions have become one of the most important corporate-level strategies in the new millennium. Merger and acquisition strategies are important to firm growth and success in the 21st century. As Ryan Air continues to grow it is expected that the company will acquire other companies such as Buzz, in order to improve its capabilities and acquire more competitive advantage.


There are differences in the strategic development of Ryanair and Cathay Pacific. Ryanair focuses on logical incremental view and command view while Cathay Pacific focuses on planning view. Ryanair develops strategies based on the changes in the environment and the creation of strategies rests heavily on the top management. Cathay Pacific emphasizes the importance of planning and quick strategy formulation.The airlines have different target markets and have different philosophies. Ryanair targets the price-sensitive market which is ready to overlook service quality, facilities and amenities for lower airfare. Cathay Pacific on the other hand builds a sustainable competitive advantage through quality service and top of the line facilities and amenities.

The current strategy of Ryanair remains focus on its desire to maintain its cost leadership in the low-cost carrier market. In order to maintain its position, Ryanair reduces cost by introducing innovative cost-reduction strategies. Ryanair’s strategies is shaped by the outside forces that affects the airline industry. In the political sphere, Ryanair is subject to governmental policies and trading block policies (EU). Economic conditions also affect Ryanairs strategies. The airline engages in serious price wars with other low-cost carriers. Ryanair is also affected by the changes in the society and the consumers. Consumer demands, needs and wants remain one of the most potent force in the creation of strategies. Technological advancements have a big impact on the operations of Ryanair. Through Porter’s Five Forces analysis, the researcher was able to find out that Ryanair is affected by the intensity of competition in the industry, the bargaining power of the consumers, the bargaining power of suppliers, threats of new entrants and threat of substitute
 
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