Case Analysis Of Ryanair

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1. Introduction
During the last decades the civil aviation industry has been affected by a dualism: full service network airlines (e.g. Lufthansa) on one hand and low cost airlines (e.g. Ryanair) on the other. The low cost carrier (LCC) managements are focused on cost reduction in order to implement the lowest price possible in every market they operate (Macchiati and Piacentino, 2006). They follow a simple business strategy: achieve higher returns on assets and customers, by reducing the cost of operations to an absolute minimum. Low prices are attractive to the consumers and they improve the yield per passenger. In addiction, LCC sell a range of disaggregated optional services called ancillary services which produce ancillary revenues (Wilson,
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Since 1990 the company implemented a substantial transformation towards a “no frills” model that it was already utilized by the American Southwest Airlines. Ryanair has been the first low-cost airlines in Europe. The Ryanair features as “no frills” company, such as no free luggages, no free snacks or beverages on board and no selected seats, permits to the company to save on aircraft costs, faster turnaround situations and then less airport costs. For these reasons the company can offer to customer lower…show more content…
Indeed, despite the fact that Ryanair has a strong position in the market and it increases its income every year, it has a poor reputation in terms of job satisfaction: there is an autocratic control approach by the management over employees who are afflicted by lack of motivation, stress, and a high staff turnover. Ryanair’s employees are driven to fill their commitments without improving their personal satisfaction. It’s not only a question of economical rewards to reinforce employees performances: within Ryanair organization self-esteem and self actualization are low and this can affect the company creativeness, innovation, growth and, if we consider the service profit chain, loyalty too.
Loyal customers who know Ryanair and its procedures to delivery services, may help employees who, in some cases, work six one-way flights per day and are therefore tired, stressed, exhausted and not satisfied (Creaton, 2004). Negative effects of stress have consequences in relation to customers because their perception will be focus on the unfriendliness and the frustration of workers during the flight (Gronroos, 2007).
In the end, loyal customers drive the company to better work conditions, better working environment that can lead to better internal relationships among employees and values sharing. Loyal customers can change the mind-set of a corporate culture and they could also change the culture

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