Ryanair's Competitive Advantage
Ryanair will be always known as a revolutionist of the Airline industry in Europe. Ryanair became Europe's first low-cost airline in the late 1990’s. It has continued to develop and has cemented its place as Europe's most profitable. It has achieved this by develop new strategies that has given them a competitive advantage over their rivals. Competitive advantage can be defined as strategies, skills, knowledge, resources and competencies that differentiate a business from its rivals (Wang, 2009).
Porter's Generic Strategy
Porter’s main argument was that a company's strength is usually divided into one of two factors: Differentiation and cost advantage. In recent years Ryanair have made the strengthening of their
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The illustration above shows how Ryanair can add value to their company and help them understand what their strengths and weaknesses are. From the Porter Value Chain above it is clear to see that Ryanair have been very competitive and it has worked to their advantage
Inbound Logistics
Due to a uniform fleet, Ryanair have benefitted from low training costs of crew and pilots. The internet ticket sales boom and online check in has improved efficiency. The Boeing discount when buying new planes has meant further cost savings
Operations
Ryanair have remained committed to their low cost no frills service for European passengers. They have limited crew on all flights and the development of technology means that access to information is much easier. Ryanair is the biggest low cost carrier in Europe presently.
Outbound Logistics
Ryanair have outsourced some of its outbound logistics like baggage handling to smaller companies. This helps in the efficacy of flights and gets flights turned around a lot faster. ‘In 2014, Ryanair delivered the best punctuality performance of all European airlines with 91% of flights arriving on time’.
Marketing and
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
Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14-seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low-fare segment market. It initiated service from London’s secondary airports. In terms of competition, Waterford and Gatwick didn’t pose any challenges.
This paper is to examine the key potential drivers within the present internal environment. Several models would be applied to support the answer and they are Stakeholder Power/Interest Matrix, Cultural Web, Resource audit, Value Chain, and threshold and core competences. With using Ryanair as an industrial example, this essay would talk about how important strengths and weaknesses are to be used in designing strategy.
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)
Generally speaking, the launch strategy of Ryanair was not the best one for that moment in time. They began operations between Dublin and London, in a very saturated market, which was already served by two competing and very experienced companies owned by the governments:
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.
Ryanair consists of a centralised functional organisational structure. Normally, employees positioned within a centralised functional
Ryanair is an Irish based airline company, headquartered in Dublin airport, Ireland. It was established in 1985, and since Ryanair has expanded from a small airline to serving 90.6 million passengers. It operates 1,800 flights a day connecting 200 destinations. (Ryanair Annual Report, 2015; (Ryanair)).
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
Set up in the year 1985 at a capital of 1 pound with a staff strength of 25, Ryanair is today the World’s favourite and most commonly used airline which operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft and is expected to increase it by another 64 in 2 years. Ryanair currently has staff strength of more than 8,000 people. Its passenger base has been increasing
Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown
1. In-depth environmental analysis of the European Airline industry and discuss the implications for the budget sector and especially for Ryanair. 2. An integrated understanding of the functioning of a company – its human and technical operations, leadership, customer relationships and financial structure. 3. Implications of the internal functioning to create viable strategic positioning and discuss any changes to Ryanair’s approach to ensure an improved sustainability 4. Evaluate the strategic leadership style of Michael O’Leary
The purpose of this report is to comment at the first part how Ryanair achieve its competitive advantage through the RBV analysis (Barney,1991), the second part will assess its approach to the diversification through the Ansoff matrix , the third part will discuss the company’s organisational culture using the cultural web modeland last part its internationalization strategy.
Now I am going to discuss Ryan air’s (RA) current strategic position by analysing its macro (external)and micro (internal) environment.
We will see how Ryanair was successful as world’s one of the most favoured low-fare airline and how did it apply each of this mix by putting in the