Ryanair Case Study

Topics: Airline, Low-cost carrier, Southwest Airlines Pages: 19 (6126 words) Published: January 27, 2013

Case analysis, identification of key issues3
Shareholder Prioritization3
Alignment with environment and Resources5
Competitive Advantage Reinforcement5
Problem statement8
Set of possible courses of actions9
Standing seats9
Only one toilet in every aircraft10
Slim staff, smaller magazines, and less ice cubes10
New technology for gutter oil to reduce fuel costs11
New routes flights and additional daily return flights11
Decision criteria12
Assessment of outcomes of courses of actions14
Selection of one specific course of action16

Ryanair has become a strong player within the European aviation through its constant focus on low cost in regard to other airline competitors. Ryanair has remained loyal towards its concept of providing low price flying tickets to its customers with a very basic service during the flight duration. Keeping to their values has made Ryanair as successful as it has become today after initiating aviation service in 1985 through the Ryan brothers, who had a very clear concept in which direction this airline will develop itself.

This research is designated to identify the key elements from its business model that will influence the long-term competitiveness of the company. By conducting a thorough evaluation of a set of possible cost-cutting proposals for Ryanair, the paper demonstrates analytical perceptions on Ryanair’s sustainable outperformance on the European aviation market. During the research, various factors from strategic dimension have been taken into consideration, including impacts from environmental and industrial scenarios, competition of resources, and corporate mission fulfillment, with intention to provide consultative strategies for Ryanair for it to maintain the strong market position in the future.

Considering that the aviation market is constantly developing in different aspects, it is important for Ryanair to stay competitive on every level of its operations within the field of specialization, i.e. low cost air fares. Hence, criteria in correlation with competitive advantage have been applied to ensure that all possible actions, such as standing seat and outcomes of the most important courses of actions must be aligned with environment and the business scope. The important key issues will be closely addressed in order to give a full and clear analysis as it is essential for Ryanair to have very clear strategies in order to remain in the position of a low cost budgeting airline as it currently is.

Case analysis, identification of key issues
Ryanair is widely reckoned as a top successful business model innovative pioneer. For years it has been dedicating in efficient delivery of a clear defined product & service preposition to the featured customers with highlighted value capture. At meantime, this business model enables its unique competitive advantage as “transportation at lowest air fare”, and guarantees its sustainable strength as its inimitable “turning cost into revenue” policy (Airscoop, 2011).[*Ryanair’s Business Model 2011, A peek into the airline’s recipe for success]. According to the definition of successful strategy from Johnson & Scholes(Johnson &Scholes,1984, Exploring Corporate Strategy), a corporation is dealing with resources and changing environment to achieve its long term competitiveness within pre-determined scope. As for Ryanair, the company initiates airline business model innovation from the following aspects, including shareholder prioritization, alignment with environment and resources, competitive advantage reinforcement, direction, scope, resources and organization.

Shareholder Prioritization
Once referred to a successful case of business management, the added value created for stakeholders would be naturally addressed, due to the fact that in recent years, the...
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