Strategy, Enterprise & Innovation of Ryanair Ltd : Report
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Added on 2020-06-06
Strategy, Enterprise & Innovation of Ryanair Ltd : Report
Added on 2020-06-06
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Strategy, Enterprise &Innovation
Table of ContentsINTRODUCTION................................................................................................................................3A. Identification and evaluation of the key elements of innovation contributing in the success ofRyanair..................................................................................................................................................3B. Analysis of different approaches adapted by Ryanair in shaping the entrepreneurial vision andidentification of Market opportunities..................................................................................................4Porter's Generic approaches or strategies – a tool to achieve competitive advantages...................4Three Generic Strategy....................................................................................................................5C. “Ryanair’s success can be attributed to the successful application.............................................6of the Blue Ocean strategy” : Analysed ..........................................................................................6CONCLUSION....................................................................................................................................7REFERENCES.....................................................................................................................................8Books and Journals..........................................................................................................................8
INTRODUCTIONThis study identifies and evaluates the main elements of innovation that contribute to the success ofRyanair Ltd. The firm is a low-cost airline which was established in 1984 and it is focused on cheapflight rates to attract customers and build a competitive advantage within the market. A completeanalysis of various approaches and theories of innovation used by Ryanair to shape itsentrepreneurial vision and identification of market opportunities has been carried out in this report.The study includes analysis of Ryanair's success considering effective application of the blue oceanstrategy. Furthermore, we will learn about various strategies and tools used by the airline to sustainand develop a large market share (Johnston and Bate, 2013).A. Identification and evaluation of the key drivers of innovationcontributing in the success of Ryanair. There are mainly four key drivers of innovation which contributes in the successof the Ryanair-Nurturing talent – The employees who have effective talent leads the innovation, it helpsin bringing new and unique ideas in the innovation.Managing creativity – The individuals or groups provide their ideas to be used in theinnovation process the management should set a process to manage the creativity in theideas for successful innovation.Building relationships – The employees working in a group should develop strongrelationship within themselves so that they can easily contribute to the innovation by sharingtheir views and ideas.Encouraging a culture of innovation – An organisation needs to encourage and motivatethe employees to create an innovation culture within the organisation, it enables theemployees to adapt and contribute to the innovation process.Ryanair Ltd. was established by Tony Ryan in 1984. He planned to provide a substitute to the stateowned single airline, is the Are Lingus between the countries UK and Ireland. Ryanair airlines wasthe first airline that introduced a budget airline model in Europe on the basis of cost leadershipstrategy of the American south west airlines. The company faced lots of issues and problems suchas huge debts, but at the end, it became the top low fares airlines within Europe in 90's.
There are various elements or factors of innovation and strategies that helped Ryanair inachieving the success such as - Mission – Ryanair airline focused on offering low fares that helped in increasingpassenger traffic while it also maintained a constant focus on the operatingefficiencies and cost commitment (Grant, 2016).Vision – To securely develop itself as Europe's top low-budget passenger airline byconstant expanding and making improvements in offering of the low-fare services.Values – Ryanair airlines is committed to provide customers the cheapest fares andmost on-time flights as compared to other competitors. The important values are thegreen policy, safety issues, punctuality and perfect baggage handling.Goals – The mentioned airlines plan to improve the efficiency and cheaper fares ascompared to the rivals within the industry. The objective of Ryanair is to become the2nd biggest international airline.Ryanair airline's success was completely based on the effective adoption of the South airline modelwhich focused on the cost leadership. it gets a benefit with the first mover advantage ofimplementing the low budget model firstly within the European market by proper negotiation of thebest rates possible with the secondary airports. Ryanair ltd has founded a kind of aircraft fleet whichhelps in saving the training costs, the point to point flights that helps in fast turn-around times andflights to the secondary airports that enables airport fee costs reduction. All of these helps Ryanairairline to increase the efficiency in the operations of the organisation. Another strategy adapted bythe cited firm is hiring the employees on temporary basis with the sub contracts that again helps theorganisation to reduce and save huge expenses which makes it flexible and capable to adopt thechanges in the business environment. Ryanair also saves a lot of expenses by not investing anyamount on the advertisement through the website. It also generates other revenues or incomethrough various supportive services such as car rental, on board gaming etc. which shares 20% ofthe total revenue generated by Ryanair airlines. (Zhang and Kongli, 2013). The airlines effectivelyused the low cost organisational strategy to gain a competitive advantage within the market. Ithelped them to successfully attract the passengers who are interested in travelling at a low fare ascompared to other airlines available with the same services. Therefore, Ryanair's innovation toolsand strategies helps the organisation to gain success and grow itself as a leading low budget airlinewithin Europe. The airline leads with the largest number of passenger which is around 57.7 million.Furthermore, Ryanair successfully operates over 140 airports which is the largest number within thebudget airline industry (Shah and Chattopadhyay, 2014).
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