Strategic Analysis of Ryanair: Innovation, Market, and Strategy Report

This report provides a comprehensive analysis of Ryanair's business strategies, focusing on its innovative approaches and market success. It examines the key drivers of Ryanair's innovation, including its customer service, short route flights, and low operating costs, which have contributed to its blue ocean strategy. The report critically evaluates Ryanair's approaches to shaping market opportunities using Porter's five forces and three generic strategies, such as cost leadership and differentiation. It also explores the 4Ps of innovation, including position, process, products, and services. The analysis highlights Ryanair's mission, vision, and goals in achieving market dominance and enhancing customer satisfaction. The report also touches on the competitive landscape and the challenges Ryanair faces in maintaining its position in the airline industry. The report is a valuable resource for understanding Ryanair's strategic decisions and their impact on its performance.

STRATEGY, ENTERPRISE
AND INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
A) KEY DRIVERS OF INNOVATION CONTRIBUTING IN SUCCESS OF RYANAIR..........1
B) CRITICAL EVALUATION ON APPROACHES TAKEN BY RYANAIR IN SHAPING
AND MARKET OPPORTUNITIES .............................................................................................3
C) CRITICAL EVALUATION ON RYANAIR'S SUCCESS IN IMPLEMENTING BLUE
OCEAN STRATEGY......................................................................................................................6
Business success factors..................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

ILLUSTRATION INDEX
Illustration 1: Strategy Canvas.........................................................................................................7
Illustration 2: Number of passengers for international travel..........................................................8

INTRODUCTION
Creating innovations in business operations consider as key approach to increase
effectiveness of any entity. It impacts on profit level and maximization in customers' satisfaction
at higher level. Present report is based on understanding innovation created by Ryanair of UK in
terms of the largest low-cost of tickets and airline services as well. It is the largest low cost
company of the country which provides airline services to a million travellers of the world. In
this regard, strategies applied by entity in respect of success of blue ocean strategy to determine
low cost on tickets and its services to increasing range of customers. However, critical evaluation
on approaches in grabbing market opportunities and enhancing sustainability approach will be
introduced. However, usefulness of creating innovations in business operations for improving
quality of airline services of Ryanair is to be understood in this assignment.
A) KEY DRIVERS OF INNOVATION CONTRIBUTING IN SUCCESS OF
RYANAIR
It is recognised that Ryanair got succeed in implementing blue ocean strategy for
increasing profitability and marketability at maximum level. This strategy emphasis on providing
low cost services, increasing passenger volumes and maintaining its market position for longer
time period. Including this, it works for maximising customers' satisfaction level with services of
the company as well maintaining good relations with them effectively (Johnston and Bate, 2013).
However, low cost on services approach remains effective to improve operational efficiency and
creating innovations in business operations. As some essential key elements of the implemented
strategies can discuss below:
Customer service: It is analysed that decision makers of Ryanair focus on dealing with
customers effectively to maximize their satisfaction level with its services at higher level.
For this purpose, it started to evaluate market trend and travellers' attitude and interests
towards its airline services (Grant, 2016). According to which, different strategies
prepared to meet their expectation. For instance; contacting with them and providing
information regarding innovations in business operations and attracting them on in wide
range. However, people get attracted towards its services and demanded for them at
higher level. Thus, it is recognised that considering customer services and maintaining
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relations with them is a key approach for getting success in innovation to achieve its
effectiveness at maximum level.
Flying short routes: For creating innovations and consuming time, Ryanair selected
flights' route as short as possible to provide convenient airline services to its travellers.
Including this, it remains helpful for increasing service takers' comfortability specifically
in terms of medical tourism, urgency in flights and so on (Shah and Chattopadhyay,
2014). Therefore, taking flying short routes remain effective and growing for the
company to sustain its position in competitive market for longer time period.
Low operating costs: Under blue ocean strategy of Ryanair, there is strongly focused on
low-cost for tickets and airline services. It got succeed in attracting people at higher level
and enhancing demand for its services (Febrianda and Tokuda, 2017). In reference to this,
it is observed that demand for Ryanair's services get increased as well influenced its
market goodwill positively. However, low operating cost remains suitable for travellers
with costs during purchasing tickets, booking for flights and others. Thus, this approach
considers as key approach for cost incurred in airline services and frequently contacting
with travellers.
Frequent connections from point to point: For getting success in innovation as of low-
cost airline services, it emphasis on contacting people frequently as respond to them
effectively. It remains good to provide convenience and comfort facilitates for them with
its service to increase their satisfaction level (Miles and Van, 2017). However, it is
succeeded in establishing and maintaining good relations with customers including
clients, agents, retailers and other airline service providers efficiently.
Other than above mentioned approaches, Ryanair considers below mentioned factors to get
success in innovation for improving its services as:
Mission: Ryanair sets mission of increasing passengers and providing them,
comfortability with its services at higher level. Including this, it also works for adopting
innovative techniques in services to attract travellers in wider range (Weiss, 2014). In
this regard, various tools and aspects are identified for improving quality services and
operational efficiencies of the company at higher level.
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Vision: It is vision of the entity to increase goodwill in global market in context to low
budget passengers. Besides this, it is also set vision for gaining comfortability of service
takers with its services in wide range.
Goals: Ryanair sets different targets as to increase its productivity and profitability
(Miyake and Kaminishi, 2016). Similarly, it is also aimed to sustain market position at
higher level globally as well appropriate decision making to improve effectiveness and
efficiency on large scale.
B) CRITICAL EVALUATION ON APPROACHES TAKEN BY RYANAIR
IN SHAPING AND MARKET OPPORTUNITIES
It is obtained that Ryanair applied different approaches for creating innovations and
enhancing efficiencies on large scale. In accordance to this, several plans made for improving
operational efficiencies and meeting travellers' expectation on efficiently (Whittle and Myrick,
2016). However, it emphasis on recent market trends and customers' demand in terms of airline
services and so on. Therefore, variety of ideas generated regarding further implementations and
increasing service takers' satisfaction in wide range. In this regard, approaches used for
innovations and sustaining market position for longer time are as follows:
Porter's five force model
Ryanair is the Europe's first and largest low fares airline. In order to move towards the
new areas of the market, the company need to analysis their external market to ascertain effective
results at workplace (Lambert and Davidson, 2013). In this regard, they have to make focus on
the Porter's five force model that assists to identify impact of different fundamental aspects in the
business to concentrate on the following elements:
Threat of entry (High) : Ryanair is well known industry which is very strong airline
industry in all over the market. In this regard, new potential airline industry come to the
market which create negative impact on the chosen industry. In this regard, the chosen
company set up their online booking system and reservation (Johnston and Bate, 2013).
Hence, the enterprise promoted their products and services through ascertain effective
results at workplace. Distribution cost of the company is very high so that it highly
impact on the business.
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Competitive rivalry (Moderate) : Ryanair has advantages to implement their operations
and functions in other areas of the world. This is because, there is low competitive rivalry
exists in the market. It assists to expanding short haul flight routes with using effective
results at workplace (Grant, 2016). Furthermore, there are several airlines compete in
respect to increasing the cost of competition. At the low price airlines, there are different
competitors exists such as easy jet, etc.
Bargaining power of suppliers (Low) : For the airline industry, suppliers having less
access of fuel so that the chosen business need to make their relationship with them. The
cited enterprise need to make large number of contracts with economic downturn. It
impacts positively with expanding to the aircraft. Therefore, the selected business unit
has opportunities to expand their operations in Europe that helps to make high profits and
revenue.
Bargaining power of customers (Moderate) : Ryanair provide standardized products and
services with excellent quality. Therefore, the company has opportunities to make
flexible demand and airline demand to determines effective results at workplace. In this
way, online system adopted by the organisation to concentrate on the customer demand
and make effective results at workplace (Shah and Chattopadhyay, 2014). However, the
company also providing competitive pricing to produce effective results at workplace that
make creative results in the business environment.
Threat of substitute (Low) : In the market, there are less threat of substitute because the
company providing their products and services in major areas of the world. Ryanair has
high quality of products and services so that they have opportunities to make sure that
they are able to attain more profits and revenue at workplace. Further, global
communication technology also ascertain with meeting and deal with agreements.
Therefore, it impacts very less on the chosen firm operations.
Three generic strategy:
Under this strategy, three approaches are given to work on for improving quality services and
taking competitive advantages for Ryanair. It includes three factors such as; cost leadership,
differentiation and focused strategy (Febrianda and Tokuda, 2017). Therefore, variety of ideas
are generated regarding improving business performance and sustaining its market position for
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longer time period. As three generic strategy tools and performance of Ryanair can be discussed
below:
Cost leadership strategy: This strategy works on increasing efficiency and standards of
services provided by a company. In this regard, cost reduction in all aspects is identified
by which management of distributing goods and services is recognised (Miles and Van,
2017). However, decision makers of Ryanair implemented this strategy to achieve very
large customer base and increasing demand for its airline services on large scale. On
critical evaluation, it is also identified that taking competitive advantage is challenging
task for the entity. Similarly, changes in customers' attitude and behaviour affect demand
for airline services adversely.
Differentiation strategy: It is recognised that Ryanair emphasis on this strategy to create
uniqueness in its goods and services. As it is effective for increasing customer loyalty and
goodwill in competitive market for longer time period. Including this, it is good for
strong brand name and satisfying travellers with Ryanair's services on large scale (Weiss,
2014). However, on critical evaluation, it is evaluated that segmenting market poorly and
differentiating customers remain difficult task for the entity.
Focused strategy: As decision makers considers to be focused and determined towards
goals and achievement in creating innovations for business operations. It is effective for
increasing attraction of people towards airline services and sustaining its position in
market for longer time period (Miyake and Kaminishi, 2016). However, service providers
work on maximizing travellers' satisfaction level with services provided by Ryanair also
got succeed in its mission. On the contrary to this, it is also identified that there are
several changes obtained in business operations and environment which affect demand
for services and mismanagement during segmentation of travellers and providing services
according to requirements. Thus, it is essential to prepare and implement appropriate
strategy for applying focused strategy and implementing business operations effectively.
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Apart from focusing and implementing above mentioned strategies, 4ps of
innovations also identified below;
Position: In comparison to other airline service provider company of UK, Ryanair plans for
creating innovation as low cost on tickets and improving customer dealing services more
efficiently. However, it sets plan to make position in competitive market and attracting travellers
in wide range. Therefore, considering position and working on its effectiveness get succeed in
becomes the largest low cost company across the country.
Process: Decision makers plan for processing and spreading information to customers regarding
unique operational services. In this regard, it is also identified that by which method, it can
attract travellers with cheap services of Ryanair. Including this, it is also preceded on achieving
effectiveness and enhancing its operational efficiency. However, all processes to implement its
market position at higher level.
Products and services: Under this consideration, decision makers of Ryanair determine quality
of materials used in providing its services (Whittle and Myrick, 2016). However, different ideas
are generated to create uniqueness in its services and attracting people on large scale. Therefore,
products and services as contacting with travellers, price determination for tickets and others
analysed. However, appropriate decisions are made regarding products and services for the entity
to create effective image in providing airline services. Thus, products and services are analysed
in terms of resources and fund used for innovations and implementing plans efficiently.
Paradigm: This factor of creating innovation in business operations is linked with efficiency of
the company and attracting people towards its uniqueness in wide range. In accordance to this,
entity aims to attract people towards business operations and cost effectiveness for cost incurred
in business operations and gaining success in increasing demand for its services at maximum
level (Miyake and Kaminishi, 2016). Therefore, for creating innovation in terms of appropriate
decision making regarding low-budget Company in airline industry, Ryanair got succeed.
C) CRITICAL EVALUATION ON RYANAIR'S SUCCESS IN
IMPLEMENTING BLUE OCEAN STRATEGY
As Ryanair adopted Blue Ocean strategy for airline services on large scale which
impacted on its growth and demand for services effectively. Including this, it is evaluated that
company got succeed in terms of cost reducing for tickets and services for flying and other
luxuries. However, large number of people demanded for its services in wide range influences
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profit level and competitiveness. Likewise, variety of ideas generated for maintaining good
relations with them and gaining their interests towards businesses effectively. In addition to this,
by creating implementations in business operations and appropriate decision making for the
further years. It is good for enhancing operational efficiency and effectiveness of the entity on
large scale. As applying blue ocean strategy remains profitable and favourable for the
improvement in airline services as similar to making its position in global for longer time period
(Whittle and Myrick, 2016). Thus, it is recognised that positive changes are implemented in
business operations also remains effective for further implementations at higher level.
Strategy Canvas: Decision makers of Ryanair prepare strategy canvas for price
determination on airline services and providing services to its travellers. However, this structural
framework for setting adequate price is prepared as follows:
Business success factors
In respect to develop the successful operations in Ryanair, following are successful
factors implemented that make creative results:
Offering low fares through having low operation cost:
In respect to this, the chosen enterprise has several elements that create successful
operations and functions with implementing different activities such as high aircraft utilisation,
Boeing 737s only, low prices charged on additional services, direct sales, no-frills products
offering, etc. In addition to this, it includes high labour productivity that accomplish through
single class, no serving reservation seat. Hence, Ryanair determines their activities with
implementing low cost carriers as subsidiary in different areas such as united which develop Ted
airline, British airways which is go airline, etc. However, this is failed so that they need to
compromised.
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On analysing this strategy canvas, it is observed that airlines services of Ryanair is
increasing in comparison to Easy Jet and Lufthansa. However, in terms of low fares and online
booking and ancilliary services, its performance is quite well. As on critical evaluation, it is
required for the company to work on primary airports factors of competition and high Ad spend
for maintaining balance and increasing its efficiency. On the other hand, performance of Easy Jet
and Lufthansa is worse than of Ryanair in all bases affects competitiveness and business
performance adversely.
As comparing airline and business performance of Ryanair with British Airways,
different factors are identified as:
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Illustration 1: Strategy Canvas

It is analysed that there are some differences in airlines of UK as British Airways and
Ryanair in terms of number of passengers for its services. However, on analysing total number of
passengers for international travelling, the difference between performance of British Airways
and Ryanair is identified. However, number of passengers who travelled for international journey
of Ryanair is greater than of other airlines. As number of passengers for Ryanair is 57,65 million
which remains quite larger than of Easy Jet, British Airways and so on. It is because of low cost
for purchasing tickets and taking its services efficiently.
On critical evaluation over adopting blue ocean strategies for implementing business
operations of Ryanair, negative consequences are obtained. For example; unable to maintain
good relations with business clients and decreasing travellers for its services etc. However,
people who focus on quality and standard in services remain decreasing in demand for its airline
services (Lambert and Davidson, 2013). Moreover, due to high level of competitive
environment, it is challenging for Ryanair to maintain its position in market. Similarly, changes
in factors like; price of fuel, methods to advertise services and maintaining customers' interest
towards it. Along with this, it remains difficult to build up society' trust with innovative services
9
Illustration 2: Number of passengers for
international travel
(Source: Passengers' ratio for airline services of
UK, 2016).