Ryanair - The Low Fares Airline: Whither now

Running Head: Marketing 1
Case of Ryanair

Marketing 2
Contents
Ryanair - The Low Fares Airline: Whither now..............................................................................3
Ans1. Ryanair success.....................................................................................................................3
Ans2. Sustainable strategy...............................................................................................................4
Porter Five forces.........................................................................................................................4
Analysis of the competitors..........................................................................................................5
Ans3. Recommendations for change...............................................................................................6
Ans4. Strategic Sense......................................................................................................................7
References........................................................................................................................................8

Marketing 3
Ryanair - The Low Fares Airline: Whither now
This report focuses on the analysis of the business strategy of the famous airlines
Ryanair. Report analyzes the given case of Ryanair and provides answers of the given case. First
of all, it is important to understand about the business operations of the airlines in the operating
market. Ryanair is known as one of the cost effective and famous airlines company operating in
the Europe. Aim of the business of airline to achieve competitive advantage in the market in
terms of affordable cost and prices. The company has adopted various cots leadership strategies
to meet the needs and requirements of the customers in the market. In this way, company has an
effective slogan i.e. you get what you pay for. By this effective message, company is able to
focus on the strategic consideration and provide low cost services to the customers. By the
effective strategic practices, the company is now able to gain strong position in the airline
industry over its competitors. The report provides answers of the given questions in the case
(Muller, 2011).
Ans1. Ryanair success
The success of the Ryanair depends upon some factors which are different from other
airlines. It is noted that the company has ‘no-frill concept’ that is helpful for the company to
reduce the prices of goods and services. The objective of this concept is to improve the
efficiency of any product or service. Along with this, by using ‘no-frill concept’, aim of the
company is to provide cheaper products and services to the end customers to gain competitive
advantage in the market. Ryanair is using this concept due to some reasons i.e. saving money to
hold the inventory, providing training to the pilots and maintaining the business in the industry,
buying new airplanes and selling the old ones etc (Witcher & Chau, 2010). That is the reason,
Ryanair is known as one of the youngest aircraft fleet in the world. Along with this, this concept
is also used by the company to save the money on airport. At the airports, customers have to pay
airport fees while buying the tickets and the bigger airports want higher amount from the
customers. In such case, Ryanair imposes low airport fee by reducing the ticket prices for the
customers and makes the offers more attractive for them (Hoskisson, Hitt & Ireland, 2008).
Further, Ryanair has only point-to-point flights for some routes. It means the company is
avoiding big routes flights for the comfort of the customers. along with this, company is focused