Ryanair Business Strategy: VRIO Analysis and Competitive Advantage

This report provides a comprehensive analysis of Ryanair's business strategy, focusing on its resources, capabilities, and competitive advantages within the airline industry. The report begins with an introduction to business strategy and its importance, followed by a detailed VRIO analysis of Ryanair's resources, including brand image, manufacturing capacity, innovation, and human resources. It evaluates these resources based on their value, rarity, imitability, and organization. The report then examines how these resources and capabilities have provided Ryanair with a competitive advantage, particularly in maintaining a low-cost structure. It also explores the extent to which Ryanair's resources and capabilities can be imitated and how the airline can manage them using the concepts of sustainable competitive advantage and dynamic capabilities. The conclusion summarizes the key findings and emphasizes the significance of business strategy in achieving long-term success. The report draws on academic sources and industry insights to support its analysis.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
VRIO Analysis.......................................................................................................................3
Resources and capabilities have provided Ryanair with competitive advantage...................5
Explain the extent to which Ryanair’s resources and capabilities can be imitated................6
How can Ryanair manage its resources and capabilities using the ideas of sustainable
competitive advantage and dynamic capabilities?.................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business strategy depict the suitable process and procedure undertaking the suitable
tactics that are being opted by company in order to enhance the scope factor of growth and
success in market considering the suitable competitive advantage. Moreover, it is useful for an
organisation in terms of cop up with the rapid changing market situation. Along with this, there
are various suitable elements which are related with the prominent strategies and tactics of
company that are concerned with making sure the sustainability of company (Kong and et. al.,
2020). Business strategy is the management field that undertake strategic management by
considering the formulation and execution of suitable goals and objectives which are considered
by top managers of company from the side of owners.
To carry forward this report, Ryanair is considered which is an Irish low cost airline
company headquarter in Swords, Dublin and also founded in 1984 as its primary operations
based in Dublin and also tends to form the largest part of Ryanair holdings. The report cover
details regarding the strategic capabilities and resources of company with the help of VRIO
analysis. It also depict that how they can offer competitive advantage, imitated and manage the
idea of sustainable capabilities in market.
MAIN BODY
VRIO Analysis
It is an effective business analysis framework that develop an effective part of company
undertaking the strategic scheme which is the basic strategic process by which company leads to
begin suitable vision statement and also continues towards the prominent objectives, strategic
choices and effective execution of strategies. This analysis develop hope by considering its
process result for having competitive advantage in the market area in which company operate.
VRIO falls for the internal analysis and also leads to evaluate the suitable resources and
capabilities of company (Moktadir and et. al., 2020). Hence, it is used as the effective tool to
analyse the capabilities and capacity of company as this model is discussed below:
RESOURCE
S
VALUABL
E
RARE INIMITAB
LE
ORGANISAB
LE
COMPETITI
VE
ADVANTAG

E
Brand Image Brand
Image - - -
Temporary
Competitive
Advantage
Manufacturi
ng Capacity
Manufactur
ing
Capacity
Manufacturi
ng Capacity - -
Temporary
Competitive
Advantage
Innovation
Capabilities
Innovation
Capability
Innovation
Capability
Innovation
Capability - -
Sustainable
Competitive
Advantage
Human
Resources
Human
Resources
Human
Resources
Human
Resources
Human
Resources
Potential
Competitive
Advantage
According to the above discussion, there are various resources are used which are
concerned with company in order to have effective analysis which is essential to represent the
capabilities of company. Therefore, this analysis is discussed below:
Valuable:
 Brand image of Ryanair is effective and valuable as it leads to permit that company to
improve its global presence and also make sure the easy entry for the potential market
area.
 The suitable manufacturing capacity of company is also valuable as in this company
leads to develop suitable products by having effective research and development
activities which is according to the filling the suitable market area (Antamoshkina and
Zinina, 2019).
 It depict the suitable reason by which company represent innovative capabilities which
are valuable for company in terms of enhancing the competitive advantage in order to
improve the addition for company its concerning portfolio. Human resources are also responsible in order to develop prominent offerings and
marketing the suitable products of company within the potential market as it leads to
make things quite valuable for company.

Rare:
 The manufacturing department of company ties thins with the exclusive suppliers in order
to make sure the prominent supply of rare products that give improvement regarding the
effectiveness by making it quite rare.
 The innovative capabilities depict the suitable mindset, technological and skills in order
to develop suitable offering by introducing the prominent features which are rarely
present in any other firm. It is quite difficult to find that individuals tends to have same sort of intellect, skills and
dedication level as all of these are present in Ryanair as by this, the Human resources of
company is quite rare.
Inimitable:
 Every type of innovation in company should be effectively patented in order to improve
the inimitableness undertaking the new features in the products of company. The employees of Ryanair has effective skills, talent and competence that cannot be
copied by other workforce of any other company as this factor make things quite
inimitable.
Organisable:
 The manpower of Ryanair is prominently trained with the help of modern age and
advanced technology and effective training equipments (Bayo-Moriones, Galdon-
Sanchez and Martinez-de-Morentin, 2020). It leads to improve the overall scope of
company by which the workforce of Ryanair tends to work with full potential in company
and also help them in develop effective and better commodities.
Resources and capabilities have provided Ryanair with competitive advantage
By undertaking the above analysis of resource based view depict the suitable perspective
of the overall competition that depict the suitable value of prominent resources and capabilities
that extract from the dynamic interplay of market focus. For this, the market and overall
environment tends to develop external constraints by describing the suitable pressures of
company which depict the suitable response by resource allocation and overall development of
capability by undertaking the suitable sources of competitive advantage. In regard of this, the
resource based perspective considering the view of respective company that leads to has the
bundle of effective resources and capabilities (Wadström, 2019). Along with this, resources are

both tangible and intangible for company that leads to use and select the proper execution of
strategies. Furthermore, Ryanair tends to be the lowest cost airline in Europe and also leads to
manage and effectively maintain its cost leadership besides from the presence of other low cost
airlines within Europe. It also leads to depict the suitable sources of the competitive advantage of
an organisation which is the ability to slow down the prominent cost in terms of sustaining the
low fares at the same time to remain profitable in market (Bhattacharyya, 2020).
Explain the extent to which Ryanair’s resources and capabilities can be imitated
The value chain of company tends to depict the prominent resources and capabilities that
lead to add suitable value within an organisation. It effectively represent the prominent forces
and strategies in terms of thinking regarding the resources at the micro-activity based level
(Alam and et. al., 2019). Furthermore, it effectively represent the key to examine that company
has the suitable capabilities and resources in terms of performing the specific activity in an
effective manner among superiors to the competitors. In regard of this, the prominent resources
which cannot be copied are innovation factor and workforce of company who tends to add value
to the prominent activities and suppliers by which they can perform their functions on the behalf
of the local firm. Moreover, the value adding activities are dispersed in order to take advantage
for the best location to perform suitable activities.
How can Ryanair manage its resources and capabilities using the ideas of sustainable
competitive advantage and dynamic capabilities?
The EasyJet and Ryanair both are the competitor in market and also tends to did better in
the current year. For this, the EasyJet leads to share suitable dynamics instead of Ryanair within
the same sector which is being oriented in the same market segment. For this, the suitable
strategy and overall performance need proper attention from the management of Ryanair.
Moreover, sustainability leads to encompass the various things in which several people work as
per the different companies (Sánchez-Herrera and Donate, 2019). Furthermore, sustainability
strategy depict that company has the general idea and rough plan in terms of aligning with the
non-financial factors by undertaking the commercial practices which is the suitable method that
leads to derive for the prominent benefits of business. Hence, it depict the sustainability strategy
of Ryanair that leads to convince the enhancement for the overall performance which is related
with the environmental and social considering the business advantage for the medium to the long
term. In relation with this, they also leads to focus on the prominent strategies and effective areas

regarding the sustainable strategy by which company need to compel for the effective method in
order to combine with suitable benefits and goals of company (Peng, 2020). For this, it
undertake effective creation of the sustainable strategy as it leads to show that they opting green
factor to maintain sustainability in market.
CONCLUSION
Therefore, it is concluded that the business strategy is most essential and effective
component which is opted by company in order to enhance the competent post and its offerings
in the suitable market area. Business strategy is the combination of the suitable decisions which
are taken and perform prominent actions by the business to achieve their business goals in order
to grasp effective position in market. Furthermore, business strategy is the backbone of company
as it make the effective roadmap for the desired objectives and goals. With the help of VRIO
analysis company protect the suitable resources and capabilities of company that leads to
develop long term competitive advantage for company. As this framework leads to put things for
effective creation for suitable vision statement before having strategic planning process. It is also
important for company to identify the impact of external environment of company that leads to
permit the company develop suitable strategies and analyse effective capabilities and resources
with suitable framework in terms of having prominent growth. Along with this, the report cover
the detailed analysis about the internal environment of company which is important in terms of
effectively evaluating the suitable strengths and weaknesses undertaking the prominent
capabilities that helps in having effective future strategy. On that basis, company leads to plan
market entry strategies by devising strategic plan for having suitable direction of company that
permit them to move towards the suitable direction in future in order to secure effective position
in the market area.

REFERENCES
Books and Journals
Alam, R and et. al., 2019, July. What Is More Important In Business? The Fallacy In Interpreting
Innovation As a Strategy. In 1st International Conference on Life, Innovation, Change
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Antamoshkina, O.I. and Zinina, O.V., 2019, May. A methodology for assessing the prospects of
modifying business strategy of an enterprise in the external environment. In IOP
Conference Series: Materials Science and Engineering (Vol. 537, No. 4, p. 042023).
IOP Publishing.
Bayo-Moriones, A., Galdon-Sanchez, J.E. and Martinez-de-Morentin, S., 2020. Business
strategy, performance appraisal and organizational results. Personnel Review.
Bhattacharyya, S.S., 2020. International business strategy: development of an integrated
framework and typology. Review of International Business and Strategy.
Kong, D and et. al., 2020. Business strategy and firm efforts on environmental protection:
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Moktadir, M.A and et. al., 2020. Critical success factors for a circular economy: Implications for
business strategy and the environment. Business strategy and the environment, 29(8),
pp.3611-3635.
Peng, C.W., 2020. The role of business strategy and CEO compensation structure in driving
corporate social responsibility: Linkage towards a sustainable development
perspective. Corporate Social Responsibility and Environmental Management, 27(2),
pp.1028-1039.
Sánchez-Herrera, I.S. and Donate, M.J., 2019. Occupational safety and health (OSH) and
business strategy: The role of the OSH professional in Spain. Safety Science, 120,
pp.206-225.
Wadström, P., 2019. Aligning corporate and business strategy: managing the balance. Journal of
Business Strategy.