Case Study Ryanair Holding

Decent Essays
In order to sustain among other competitors, Ryanair Holding should evaluate their strategy which is low cost business level strategy in the long run. This strategy alone is not a basis for competitive advantages, nor are advantages sustainable over time. This is because it can only be regard in helps Ryanair to increase its revenues or to lower costs. The firms also derive a temporary advantage because competitors quickly imitate or substitute for it as things that an organization own. Since economy is further growing, Ryanair faces a lot of challenges in maintaining their revenue growth while keeping ticket prices low. Thus, it is essential for Ryanair to narrow down and clarify their core competencies of innovative cost cutting and alternative…show more content…
If this strategy is scarce or they are not available to an airline industry’s competitors, they can become uncommon, difficult to exploit and rare compare to others. If Ryanair’s competitors possessed the same valuable strategy of low fares, it is not a source of competitive advantage anymore unless it is rare. This is because all of these airline industries have the capability to exploit that low fare strategy in the same way. In this case, Ryanair Holding focus on control their cost by using a single model aircraft which allows minimization of training and maintenance costs, efficient management of spare parts inventory, and more flexible scheduling of flight crews. This cost control is uncommon which is rare relative to other competitors in the short run. But in the long run, Ryanair Holding would not be rare forever since competitors which are other airline services would be using the same strategy to compete with Ryanair Holdings. Thus, it would then give customers more choices to pick. Infact, competitors like British Airways and Air France would be able to develop the latest or better version of low-cost business level strategy than what Ryanair has offered. Therefore, this strategy then would not be rare
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