Business Strategy of Ryan Air Case Study Example | Topics and Well Written Essays - 1500 words

Business Strategy of Ryan Air - Case interpret ExampleAn Irish airway it has its headquarters in Dublin and its biggest operational base is London Stansted aerodrome in UK. Ryanair has profited immensely due to the deregulation of the air industry in Europe in 1997and has underg bingle rapid growth to become on of the leading names in the industry. But its rapid expansion has been characterized by the numerous controversies and complaints about its functioning. In October 2006, Ryanair was voted the worlds most disliked airline in a survey by the TripAdvisor website, and in November 2006, it was revealed as the subject of more complaints than some(prenominal) other airline in the EU. (Irish Examiner, 2006-11-28)But this aside, it has evolved into one of the most profitable affordable airlines in the world. EasyJet, Monarch Airlines, Centralwings, Air Berlin etc. are the of import low-cost competitors for Ryan Air.BUSINESS dodging Business strategy or the long-term business pl an is typically characterized by major resource issues or their allocations in an organization. there are two main categories of strategies that are normally followed by the companies ---- the Generic (general) strategies, and Competitive strategies. Some of the generic strategies are a. Growth or the expansion of the association by purchasing new assets or developing new products. b. Globalization Going international that is -- pitiful operations into more countries becoming multinational companies.c. Retrenchment --- This is typically characterized by focusing on the cell nucleus business by cutting down on ancillary plans.And some examples of Competitive strategies are a. degrade the prices. This is useful if the company is the market leader and can benefit from the advantages of producing large volumes of output such that the lower costs can be covered by more output. And the competitors are unable to match the take down prices.b. Differentiation - that is position the co mpany as providing something different from the other rivals. For e.g. The aviation industry. It is divided into two main segments --The low cost airlines such as Ryanair who offer low prices and fly on short routes without providing any special services and the high priced airlines such as British Airways that concentrate on differentiation. They offer mend services to passengers such as more legroom, in flight entertainment, and more individualized attention. (Grassley, 2002)CURRENT STRATEGY OF RYANAIRAs per the official website of Ryanair, its main objective or mission is to become the Europes leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. (Ryanair Website). They are looking to increase their customer base by increase their cost-effectiveness and operational efficiencies. The key elements of Ryanairs strategy are Low Fares, Good Customer service, Frequent flights, Low operating(a) costs, Internet adva ntage, Safety and Quality maintenance, Enhanced ancillary services.Basically, Ryanair is arduous to achieve economies of scale by trying to increase its number of flights and keeping its planes in the air as frequently as possible in a 24 hour period. Its competitive advantage lies in its ability to keep low fares and go out frequent flights for point-to-point short distance routes. Ryanair sells seats on a one-way basis, thereby eliminating the minimum take a breather