Strategy - Ryanair

1400 Words6 Pages
Global MBA Strategic Management
Formative Assignment - Dec 2011

Z0928183

INTRODUCTION
Ryanair was founded in 1985 with only two aircrafts and a single Dublin-London route . By 2010 Ryanair had transformed itself into Europe 's leading low cost airlines with 232 aircrafts flying to 153 destination. Ryan Air 's strategic objective has been to offer the lowest possible air fare to its passengers and strive towards becoming europe No.1 Low Cost airlines. In this paper we will explore and analyze Ryanair 's competitive position, strategic capabilities and sustainability of its strategies.

COMPETETIVE POSITIONPORTER 'S FIVE FORCES FRAMEWORK;
Threat of New Entrants: LOW

High entry barrier due to large capital requirement,
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From the SWOT analysis, Ryanair strength is being the leader in low cost airline industry. However this cost leadership has come at the expense of customer service. Ryanair should improve its customer service to build customer loyalty. Ryanair faces threats from competitors and substitutes mode of transportation, but should seize opportunities in the eastern European expansion.

STRATEGIC CAPABILITIES
Strategic Capabilities and Competitive Analysis;

| Resources | Competencies | Threshold Capabilities | Aircrafts Employees Financial resources | Point-to-point short haul flights Flying to secondary airports Online booking system with www.ryanair.com | Competitive Advantage | Unique Resources Management and leadership of Micheal O 'Leary. “Ryanair” Brand name | Unique(Core) competencies Innovative cost cutting Alternative revenue generation |

Ryanair’s Strategic Capabilities and Competitive advantage can be attributed to its Unique Resources and its Unique(Core) Competencies;

Management and Leadership: Michael O 'Leary, the CEO of Ryanair is instrumental in the Low Cost Strategy of Ryanair. Some of the most creative cost cutting methods implemented in Ryanair came directly from him. He has been effective in exploiting and managing the core competencies of Ryanair. By developing the human and Social capital overtime, the cost cutting culture is embedded throughout the

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