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Ryanair

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Ryanair
3. Problem definition

3.1 Main problem: Müşterilerin şirket hakkında olumsuz düşünceleri

One of the most important things in managing an airway company is to have all its operational features(such as reliability, clarity of fees, availability of fares, on-board comfort, service, etc.) under control, which Ryanair cannot handle in various ways, resulting in negative thoughts of customers about this company.

3.2 Related problems:

Ryanair accumulates ‘hidden’ taxes and other fees, restricted customer services, and deceiving advertisements. Ryanair imposes charges for anything from checking bags into the hold, up to £40, to changing the name on your ticket, for £110.

Assuring quality service, which the customers refer as ‘the biggest headaches’. Standing seats, paid toilets, inflight entertainment options and more recently flying with only one pilot, are some of the things that are not seen as a ‘problem’, according to boss, Michael O’Leary.

The company is faced with different unsolved issues because of lack of strategic decision making in several areas of human resources particularly in relation to trade union policies. For example, some employees are not guaranteed the same workers’ right with others, and Ryanair defends themselves by saying that their workers are employed on Irish air territory and under Irish contracts, and have no interest in negotiating with any trade union.

4. Strategic Options

4.1 Growth/Share Matrix (BCG Matrix)

Market ShareMARKETGROWTH

Stars -Ancillary products like in flightshopping, non-flight scheduled services etc. offers a very high margin

Question Marks -Ryanair’s investment in Aer Lingus stock could loose money for it, as Aer Lingus has all the problems of a legacy carrier with very less benefits of a large legacy carrier (e.g. economics of scale)

Cash Cows -Lucrative short hop

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