LSBM306 Strategy, Enterprise & Innovation Assignment

Added on - 28 May 2020

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Running head: STRATEGY, ENTERPRISE, AND INNOVATIONStrategy, Enterprise and InnovationName of the Student:Name of the University:Author’s Note:
2STRATEGY, ENTERPRISE, AND INNOVATIONTable of ContentsIntroduction......................................................................................................................................3Low Prices...................................................................................................................................3Short distances traveling..............................................................................................................4Point to point operation...............................................................................................................5Low operating costs.....................................................................................................................6Price.............................................................................................................................................6Product or service........................................................................................................................7Place.............................................................................................................................................7Promotion....................................................................................................................................8Innovation strategies......................................................................................................................10Reducing the costs below Industry............................................................................................10Create new commercial value....................................................................................................10Raise profits above industry......................................................................................................10Eliminate fares in Industry.........................................................................................................10Conclusion.....................................................................................................................................13References......................................................................................................................................14
3STRATEGY, ENTERPRISE, AND INNOVATIONIntroductionRyanair is known as the leading low-cost airline services of Europe. There has been ashift in the business strategy followed by Ryanair. They have shifted their focus from the redocean strategy to the blue ocean strategy. This was mainly an action taken by Ryanair to sustainin the market of high competitiveness. The existing strategies of Ryanair were not at allprofitable. So, they thought of bringing about some changes like creating supreme value for alltheir customers, having a total possession over the resource base and also present their superiorvalue-adding services in the most efficient and effective manner (DaSilva and Trkman 2014).However, it has been seen that right from the beginning of the changes that they have taken interms of their business strategies, they have always tried to generate value for both the companyand their shareholders as well. However, this transformation or the shift from the red ocean to theblue ocean strategy has been helpful for Ryanair airlines. They have been able to attract a largenumber of customers. This not only helped them increase their total sales and at the same time,they also have been able to check their overall operational costs.Identification and evaluation the key drivers of innovation contributing to the success ofRyanairSome of the important factors that are responsible for the success of Ryanair are as follows areLow PricesOne of the most important strategies that were followed by Ryanair was to fly only acrossthe small distances. This enabled in keeping the fares of the flights low. This indeed was a goodstrategy because there are different kinds of passengers having different economic status. Thereare many of the passengers who are the conscious travelers and look for lower priced tickets.
4STRATEGY, ENTERPRISE, AND INNOVATIONThese passengers would have opted for any other means of communication if the prices ofRyanair tickets have been very high. It was also seen that the European passengers are mainlychoosing the low fare air tickets because it goes them the best value for money air services. Oneof the important strategies that have been used by Ryan air in this context is the Blue OceanStrategy. It has made use of this strategy in order make itself the leading low-cost airlines tooperate in Europe. The main objective of Ryan air in using this strategy is to emphasize more onthe reduction of the operational cost and increasing the total volume of the passengers. The keyobjective of this strategy is to offer air tickets to the passengers at a considerably lower price sothat it can be afforded by a large number of passengers.Some of the key factors of this strategy areShort distances travelingShort distances traveling,which is also known as the point go pint operations or the shortroute traveling. Ryanair unlike its many othercompetitors like Easyjet, Norwegian, Vueling,Wizz Air,did not believe in carrying the passengers across a vast distance. They wanted to keeptheir distance short and maximize their efficiency and reducing their operational costs at thesame time. Unlike the other airline service, Ryanair used to fly single aircraft fleet of Boeing737-800. This naturally resulted in a smaller number of passengers. As the total volume ofpassengers was small, it also became manageable at the same time. As a result of this, thenumber of free services and customer services that had to be offered to the customers could alsobe checked and easily managed. The number of free services could also be stopped or at leastreduced comparatively. The airline stuff could also function freely and peacefully without anycompulsion of the European leader. Ryan air has also been highly successful in breaking the age-old normative belief that the basic rule of prospering on this business is by providing luxury
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