Ryanair Casestudy

3745 Words Feb 22nd, 2011 15 Pages
Ryanair – the low-fares airlines
Case Study
By

Sid Hegde

Ryanair – the low-fares airline

Table of Contents Q1. Why has Ryanair been successful thus far?..................................................................3 Q2. Is Ryanair's strategy sustainable?..................................................................................4 Q3. Would you recommend any changes to Ryanair's approach?.......................................5 Q4. Should Ryanair continue to pursue the Aer Lingus bid?..............................................6 Q5. Evaluate the strategic leadership of Michael O'Leary..................................................7
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First mover advantage Ryanair was the first airline in Europe to introduce low fares and it has successfully made use of first mover advantage by negotiating very good rates with secondary airports and locking in landing slots at these airports. Michael O’Leary’s leadership Michael O’Leary has been the key ingredient of success for Ryanair. His understanding of the Southwest model and it’s successful adaptation has transformed Ryanair and has made it the leading low fares airlines in Europe. Low cost operations Ryanair has the best run low cost operations helping it achieve the best operating margin in the industry. All elements of it’s operations are geared towards reducing cost and improving efficiency.







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Ryanair – the low-fares airline

Q2. Is Ryanair's strategy sustainable?
Yes, Ryanair’s strategy is sustainable because it’s core competencies of ‘Low Price’, ‘Cost conscious culture’ and ‘R&D on aircraft design’ (A5) gives it competitive advantage.  Low Price Ryanair’s strategy is based upon this core competency. Strategies based upon core competencies are usually successful as articulated by Prahalad and Hamel in their article on core competencies [4]. Cost conscious culture As we can see from the cultural web (A12), the low cost culture has spread throughout Ryanair’s organization. The structures and policies that Ryanair has in place will make

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