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Essay about Dogfight over Europe: Ryanair (C)

Satisfactory Essays

Case: Dogfight over Europe: Ryanair (C)
A. What is Ryanair’s strategy and why has it been successful so far?
In 1911, Ryanair faced cash flow problem, and was going to be bankrupted. However, it found the way to overcome this crisis by transform themselves from ordinary high-price airlines into the lowest price airline in the EU. They focused on 5 things to rebirth their company.
1. Focused on cut down the costs: Ryanair aggressively cut most of its costs in many ways.
Found the routes and airports that charged low landing fees, and low turnaround costs
Chose routes to Secondary airports, low airport fee
Eliminated all in-flight amenities
Used metal stairs instead of “air bridge”
Paid lower commissions to travel agents
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“the firms as brutally cost conscious”
Gave its stock options to employees
Rewards system varied with performance, commission, and corporate profits
Had lots of job opportunities, e.g. promotion or rotation
Had no bureaucracy and hierarchy

Compared to its competitors, Ryanair became succeed because it was the first low-cost airlines which provided low airfares that generate increased volume of customers. At the same time, it had maintained a continuous focus on customer satisfactions, cost management and operating efficiencies, leading to the great reputation that transfer “from mouth to mouth” by its loyalty customers. That created more customer and more income, being its sources of fund for reinvest. Also, the extra revenue from sales, advertised spaces renting, and referral fees could support its financial health and accommodate it to sell the ticket more lower price.
Moreover, started with people, Ryanair’s employees shared the same values and goals with their company, “cost-conscious” with “good-services”. Sharing the company’s benefit with them also motivated them to work better and better. This was the other important foundation for its success. That’s why, Ryanair was success and became very high competitiveness in this market.
B. Looking to the future, what should be the strategic concerns of Ryanair? What recommendations would you make to the top management?
In my opinions, the most strategic concerns of Ryanair is its competitors. Assuming we

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