Ryanair, Competitive Advantage

773 WordsNov 20, 20114 Pages
Identify whether your company has a competitive advantage or disadvantage in its primary industry. What is the basis of its competitive advantage or lack of? Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment. Ryanair operates in a very competitive market with in Europe. Considering the current economic climate this market has become increasingly more competitive with a far greater emphasis on value for money. It is evident from Ryanairs records that they hold a competitive advantage in their area of business. This is proven from the…show more content…
Flying to cheaper, less congested secondary airports: This allows Ryanair to charge lower fares for their passengers making them a far more attractive option for the average consumer. The use of secondary airports and point-to-point services help to increase fuel efficiency and limit emissions. Flying early in the morning or late in the evening: this avoids air traffic delays and allows Ryanair to take advantage of lower landing fees incurred. Fast turnaround times: Ryanair have very fast turnaround times which allows for maximum use of the aircrafts. Unreserved seating: This ensures passengers bored as quickly as possible once again reducing the turnaround time and maximizing use of a single aircraft. Internet Sales: Ryanair make over 90% of their sales via the internet. This eradicates the use of sales representatives thereby eliminating the need for commission being paid to travel agents. These all allow Ryanair to offer their customers the lowest price available. Low prices are they key to competitive success in the airline industry. Ryanair makes use of its resources to maintain and expand their competitive hold on the European airline industry. These resources include · Physical resources: which are the resources needed to operate the business such as aircrafts, headquarters and secondary airports. · Human resources: Ryanair employees some 2,700 people who all have multiple skills. This enables them to do more
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