Ryan Air

Topics: EasyJet, London Luton Airport Pages: 5 (1932 words) Published: April 28, 2014
Strategic
 Management
 

 
Ryanair
 has
 grown
 to
 be
 the
 leading
 European
 low
 cost
 airline
 (Figure
 1)
 since
 
its
  foundation
  in
  1985.
  This
  essay
  analyses
  a
  Ryanair
  case
  study
  (Durham
 
University
 Business
 School
 case
 study)
 and
 seeks
 to
 assess
 Ryanair’s
 competitive
 
strategy,
  success
  factors,
  distinctive
  capabilities
  and
  the
  sustainability
  of
  their
 
competitive
 strategy.
 
 

 
The
  airline
  has
  57
  bases
  and
  over
  1,600
  daily
  flights
  across
  29
  countries.
  It
 
operates
 a
 fleet
 of
 303
 new
 Boeing
 737-­‐800
 aircraft,
 employs
 over
 9,000
 people
 
and
 will
 carry
 over
 81.5
 million
 passengers
 this
 fiscal
 year
 (Ryanair.com).
 

 
Figure
 1
 

 
Top
 10
 Airlines
 (3-­‐Jun-­‐2013
 to
 9-­‐Jun-­‐2013,
 Europe
 to
 Europe,
 System
 traffic),
 ranked
 by
 Seats
 

 
 
Source:
 CAPA
 -­‐
 Centre
 for
 Aviation
 &
 Innovata
 

The
  competitive
  strategy
  adopted
  by
  Ryanair
  emulates
  a
  low-­‐cost
  strategy
 
pioneered
 by
 Southwest
 Airlines
 in
 the
 USA.
 Following
 the
 appointment
 of
 their
 
CEO
 Michael
 O’Leary,
 Ryanair
 implemented
 this
 low-­‐cost
 approach
 in
 1991
 (case
 
study)
  that
  at
  the
  time
  did
  not
  exist
  in
  Europe.
  At
  this
  stage
  it
  could
  be
  argued
 
that
 a
 “blue
 ocean”
 strategy
 was
 (Kim
 &
 Mauborgne,
 2004)
 initiated
 by
 creating
 
demand
  in
  a
  new
  market
  with
  no
  competition,
  but
  also
  competing
  against
  a
  “red
 
ocean”
  (Kim
  &
  Mauborgne,
  2004)
  by
  taking
  customers
  from
  established
  rivals
 
many
  of
  whom
  offer
  the
  same
  value
  and
  services
  as
  each
  other.
  The
  low
  fares
 
offered
  by
  Ryanair
  were
  a
  “substitute”
  (Porter,
  2008)
  for
  travellers
  who
  may
 
have
  used
  other
  means
  of
  transportation
  such
  as
  cars
  or
  trains.
  “Blue
  ocean”
 
Asif
 Paracha
 (Z0944564),
 November
 2013
 
Assignment:
 906SMGT.1
 

1
 

ideas
  can
  be
  easy
  to
  imitate
  and
  despite
  barriers
  to
  entry
  a
  strong
  competitor
 
EasyJet
  was
  formed
  in
  1995.
  This
  initial
  phase
  of
  a
  “blue
  ocean”
  market
  gave
 
Ryanair
 first
 mover
 advantage
 to
 capture
 market
 share
 and
 establish
 its
 brand
 as
 
a
 low-­‐cost
 no
 frills
 airline.
 
Coinciding
  with
  the
  initial
  “blue
  ocean”
  phase
  Ryanair’s
  competitive
  strategy
  can


References:   (2011)
  Exploring
 December
 (2009)
  M.
  (1996)
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Saving Private Ryan Essay
  • Nolan Ryan Essay
  • Ryan Air Case Analysis Essay
  • Saving Private Ryan Analysis Essay
  • Saving Private Ryan Commentary Essay
  • "Saving Private Ryan" Essay
  • Saving Private Ryan Essay
  • Air pollution Essay

Become a StudyMode Member

Sign Up - It's Free