Case study 2.5 –Ryan air: Flying High in a competitive Atmosphere 1. How important is the role of operation in achieving competitive advantage at Ryanair?
Ryanair competitive advantage is based on cost leadership strategy, maintaining the lowest prices among low-cost airlines (Haberberg and Rieple, 2008). In 2011, Ryanair became the most profitable low cost carrier in the world (www.ryanair.com). How operations support competitive advantage of Ryanair is measured by five performance objectives: speed, flexibility, quality, dependability and low cost (Greasly, 2009). Speed: Ryanair is focused on secondary and regional airports, because they have less terminal delays, restrictions and congestion, making the service quickly (Greasly, 2009). Flexibility: Ryanair is increasing its operations in numerous country bases giving the customer new routes and frequency in flights around Europe and Morocco (Greasly, 2009). Quality: Ryanair has a third part agreements and personal staff to ensure that its aircrafts accomplish with all requirements. Also, Ryanair has a rapid and secure booking system (Greasly, 2009). Dependability: Ryanair has the best percentage among low-cost airlines related to punctuality, cancellations and complaints for luggage’s losses. (Greasly, 2009). Cost: Ryanair maintains low wages, outsourcing activities at the airports with competitive contracts to decrease additional staff, maintaining a high load avoiding unused resources (Greasly, 2009). Although fuel jet prices represented 39% of total operation cost in 2011, it does not affect flight prices. Ryanair sets forward contracts to buffer unpredictable fuel price fluctuation in short term (www.ryanair.com). 2. What structural and infrastructural aspects are aligned with Ryanair´s operations strategy?
Infrastructural decisions-Work structuring: Ryanair has chosen a rigid working policy with the aim of optimization of human resources by increasing and keeping productivity and reducing labor...
References: Haberberg, A. and Rieple, A.( 2008).Strategic Management. Oxford University Press Inc.,New York.
Greasly , A. (2009). Operations Management. Wiley and Co. Ltd
www.ryanair.com (accessed 11 February 2012)
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