What Is Ryanair Competitive Advantage

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Introduction: Ryanair is the most successful and profitable airline in the world. It achieved this by adopting various practices that gives it a competitive advantage over rivals. Ryanair aims to offer air travel services at low rates and this attracted many passengers while at the same time it maintains a continuous focus on cost reduction, operating efficiencies and continuous improvements. In this report, we will start presenting the history of Ryanair airline. After this, we will discuss the competitive advantage of Ryanair, how they gain it and build it. And we will answer whether Ryanair was able to sustain its competitive advantage or not and why. Also, we will identify the competitive strategy that Ryanair pursued and we will list the…show more content…
It is headquartered in Swords, Dublin and Ireland , and its primary operational bases at Dublin and London Stansted Airports. At their beginning they provided scheduled passenger airline services between Ireland and the UK. The aim was to break the monopoly on London-Ireland flights held by British Airways and Aer Lingus. They ran at loss until 1991, when O'Leary determined that the key to profitability was low prices(fairs), quick turn-around times for aircraft, no frills and no business class, also to operate a single model of aircraft. Ryanair airline has been characterized by its rapid expansion and this is the result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model. And now Ryanair are operating over 305 Boeing 737-800 aircraft to 180 destinations in 30 different countries and they have over 9000 employees. In 2013, Ryanair was both the largest European airline for the numbers of passengers carried, and the busiest international airline by passenger numbers. They are calling themselves, “Europe’s only ultra low-cost…show more content…
What allow Ryanair to gain competitive advantage its ability to provide air travel services at low rate which allowed them to have a profit higher than the industry average. What building blocks of competitive advantage are there in the case? Although easyJet show up and competed with Ryanair for the low cost market and some of the same routes as Ryanair, Rynaie was able to remain its strong position in the market. Ryanair had distinctive operational models. The most important distinctive feature that distinguishes Ryanair from its main competitor easyJet and other competitors is that the fares are the lowest in the market. In 2002 the average fares of Ryanair were 30% cheaper than easyJet. In addition to all this, Rynair showed better punctuality record in taking off and landing on time than its competitor easyJet. Ryanair was making a good profit from flying to secondary airports which gave them a cost advantage because they avoid huge gate and landing charges and their flights in the less congested airports allow them to improve the turnaround time and the arrival and take off

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