Application of Porter's Generic Strategy and Bowman's Strategy Clock to Determine the Success of Ryanair Company

BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Apply Porter's generic strategy and Bowman's strategy Clock to determine the success of
Ryanair company.........................................................................................................................3
2) Is Ryanair's new strategy sustainable......................................................................................6
3) Recommend favourable changes to support the report...........................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business management encompasses functioning like planning, organising, directing as
well as controlling the resources in order to systematically perform activities and meet
predetermined objective successfully. It is basically used to build business strategies by carrying
out core practices and policies designed to satisfy the needs of prospectus and accommodate their
requirement successfully (Aithal, 2017). To better define the topic Ryanair company has been
selected that was founded in 1985 and provide airlines services between Ireland and UK. It is
one of the largest budget airlines that has gain immense growth opportunity by successfully
catering the needs of national as well as international customers. This report cover topics like
application of Porters generic strategy as well as Bowman's Strategy clock to gain immense
success. Analyse internal and external factors in order to prepare sustainable strategy and support
the functioning of company. Along with that recommendation to bring further improvement are
presented in report.
MAIN BODY
1) Apply Porter's generic strategy and Bowman's strategy Clock to determine the success of
Ryanair company
Why Ryanair has been successful so far
Porter's generic strategy: To investigate whether the strategy implemented by Ryanair
company leads to sustainable performance in future it is essential to determine the actual position
of firm. The initial position determined whether the performance of company is above or below
average and how effectively it can gain profitability in long run. Thus, Porter generic strategy
comprises of unique strategy that is implemented by an organisation in order to gain competitive
advantage. On the basis of predetermined objective like increase market share the company
selects desirable competitive strategy in order to overcome competitive pressure for low cost
carrier industry (Albort-Morant and Ribeiro-Soriano, 2016). Explanation of different strategies
in reference to Ryanair company are strata below:
Cost Leadership: By adopting cost leadership strategy the company set out its image as
low cost producer with the objective to cover wide market successfully. This strategy allow the
firm to pursuit the advantage of economics of scale to penetrate its operations and successfully
target to broad market at reasonable price range. Herein, Ryanair company can apply cost

leadership strategy where they cover the tourist by offering lowest price fairs in comparison to
other airlines of aviation sector. This leads to profit maximization as it strengthen the strategic
position by setting valuable image and deliver quality services at reasonable prices.
Within this strategy the firm set out unique position by differentiating its services from
other rivalry available in the market. As it focuses to offer additional attribute due to which
company can charge the premium prices for its innovation and desirable quality. In relation to
Michael O'Leary's who is the CEO of Ryanair company faces certain complaints from the
customer in terms to upgrade their services. To incorporate better position the company can
select differentiated strategy as it allow to enrich the position by adopting innovation. Therefore,
it can maximise the productivity as well as profitably margin of company.
Focus strategy: Within generic model, focus strategy target their operations to the
narrow market and deliver offerings at low cost. The company select either specific segment or
group in order to tailor innovative strategy and serve whole market effectively. It comprises of
either cost and differentiated focus that is determined below:
Cost focus: This strategy reflect that company delivers the product or services at low cost
for the confined geographical market. By deliver quality product business entity can strengthen
its position by securing its customer base for long duration (Cerchione, Esposito and Spadaro,
2016). Being cost focuser, Ryanair company can change its organisational culture by lowering
the cost of services in particular market like Ireland to gain competitive advantage. This attempt
to increase the profit margin by diversity productivity and managing low cost of operations by
eliminating unnecessary flight amenities to deliver the favourable rate of airport.
Differentiated focus: Based on differentiated strategy the company makes effort to
accommodate the requirement of narrow target market by delivering them the supreme quality of
services. Confined group is selected like high income group to whom prestigious services are
delivered by company without any delay and ineffectiveness. Herein, Ryanair company can
adopt this strategy to establish renowned position ion the market. Even the customer gets
opportunity to experience supreme level of services significantly.
Therefore, amongst different strategies Ryanair company can select cost leadership style
in terms to cover the need of broad target market by offering them the services at reasonable
range. This basically satisfy the need of different age group and enhance the engagement rate of
existing as well as potential customer. Along with that in 2014 the company launched three plan