Advantages Of Low Cost Business Level Strategy

Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.

Ryanair is a company set by the Ryan Family in 1985 with a share capital of £1 and 25 staff. They got permission from the regulatory authorities to compete with British Airways and Aer Lingus’s high fare duopoly on the route of Dublin and London in 1986. Through specialization in care operations cheap and smiling, with low cost as the most crucial factor, CEO Michael O'Leary has made it famous in Airlines zone, flying from eighty five airports and operating one hundred and twenty eight the ryanair.com Web site first inaugurated for conduct e-ticketing in January 2000, it hoped make profit up to 50% of all ticket sales. Though, that goal surpassed rapidly. Within a year it was making up to 72% profit. The success of the Web site is so good at earning profit that Ryanair has not done anything to get bigger in other selling channels, such as tele sales, agent sales or direct sales in the face of the rapid increase of business in current

The purpose of my assignment has been done in terms of strategic analysis, its formulation and implementation of Ryanair organization. The assignment is developed by three parts which includes variety of questions in the each part.

Prior to 1991, Ryanair had suffered from continuous losses from 1985 to 1989. The first reason that put it into this situation was that it tried to position itself as a low fare airline with the first rate services. It tried to keep low and unrestricted fare, while keep focusing on the best customer service and relationship. This mixed model was proven inefficiency. The low price could lure number of

In this report, we will start presenting the history of Ryanair airline. After this, we will discuss the competitive advantage of Ryanair, how they gain it and build it. And we will answer whether Ryanair was able to sustain its competitive advantage or not and why. Also, we will identify the competitive strategy that Ryanair pursued and we will list the

Sustainable competitive advantage according to Lynch (2003) of Ryanair is: the low cost basis (key success factor), offering of the cheapest ticket prices (in order to target price sensitive customers) and the abilities of the management and the CEO (leadership) of Ryanair. In addition to that first mover experience (experience from competing against BA and Aer Lingus at the beginning) may also have benefited the company.

Also, the cost of aviation fuel is another element would effect Ryanair’s profitability. In view of fact that accessibility of oil decreases, global demand increases, and the unpredictable exchange rate, the Ryanair model, i.e., to be as low-cost, would be

Due to the recent pilot scheduling error that led to rescheduling and cancelling flights for up to three quarters for Ryanair, the brand had to deal with tough times to regain its position in the industry. Ryanair has been successful in offering to the customers what it believed they needed namely secure air journey at a low price. However, Ryanair as a brand has competed and fared poorly in a range of polls and surveys in recent

Analyze the business-level strategies for the corporation you chose to determine the businesslevel strategy you think is most important to the long-term success of the firm and whether or

In order for a business or corporation to grow and expand at a calculated pace, they must be able to strategize the proper business plan to get there. A strategy is a set of analytic techniques for understanding and influencing the firm 's position in the marketplace (Raimundo, 2001). Having a business

The strategic plan of Ryanair has been to establish itself as Europe’s leading low-fares airline.” Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.” (www.ryanair.com)

Over the years, company sustained low operation costs and tickets prices following well-developed strategy. Among other measures, it was able to keep prices low by flying only one airplane type, minimizing service and maintenance expenses, and convincing employees to cut gate turn-around times and make the airline more efficient (Fitzpatrick, 2005).

Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair

The Cost leadership strategy aims for the business to have a low price product being the lowest-cost producer. The differentiation strategy involves the development of high quality unique product or services which is usually priced high. Focus is the third generic strategy based on competitive scope. A focus strategy targets narrow segment of domain of activity and tailors its products or services to the news of that specific segment to the exclusion of others. (Exploring Corporate Strategy, 2012). An example of a company that currently follows the cost leadership strategy is Ryanair. Ryanair Ltd is an Irish low-cost airline based in Dublin Airport with operational bases at Dublin and London Stansted Airports. The airline has been characterised by rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model. Although initially this strategy was used to gain competitive advantage over competitors, their success has seen the emergence of approximately 60 new low-cost airlines. As Porters generic strategy model states that a company has to choose one of these strategies and try not to combine both strategies it meant that other companies could try to emulate their success by employing the same strategy and an example of companies that have done this is EasyJet and Aer Lingus. However later on in Porters career he understood that are some circumstances

A unique cost cutting policy would be the main core competence of Ryanair. It refuses to provide any meal vouchers or hotel accommodation for flights which are delayed or cancelled for reasons beyong Ryanair’s control in order to reduce the operating cost. (Ryanair, 2011) Meanwhile, Ryanair is using LFA business model to design the size of its