Case Study: Ryanair - Business Strategy, Competitive Analysis

This case study analyzes Ryanair, a leading low-cost airline, examining its business strategy, competitive advantages, and market position. The report diagnoses Ryanair's organizational business strategy, evaluating its competitive advantage using Porter's Five Forces model and assessing its ability to identify competitor strengths and weaknesses. The analysis covers cost leadership and differentiation strategies, recommending potential business strategies for improvement. The case study explores Ryanair's operational practices, customer service, and strategic responses to market changes, providing insights into the airline's evolution and challenges. The report concludes with recommendations for enhancing customer perception, expanding routes, and improving operational efficiency. This analysis is valuable for understanding strategic management and business development in the airline industry.

Ryanair the low fares
airline

Table of Contents
INTRODUCTION ..........................................................................................................................1
BACKGROUND.............................................................................................................................1
1. Diagnose organisational business strategy and evaluate the competitive advantage of the
company......................................................................................................................................1
2. Ability of executives of company to identify strengths and weaknesses of competitors and
strategy formulation....................................................................................................................2
3 Recommendations of potential business strategy...................................................................3
RECOMMENDATION AND CONCLUSION...............................................................................3
.........................................................................................................................................................3
REFERENCES................................................................................................................................4
.........................................................................................................................................................4

INTRODUCTION
Business strategy introduces as a long term plan of action that is designed to accomplish
a specific goal or set of objectives (Simon and Fassnacht, 2019). It can be understood as the set
of direction and course of action which support the entrepreneurs in attaining specific business
goal and objectives. This report is based on the Ryanair which is an Lrish budget airline. It was
founded in 1984 by David Bonderman and headquartered Dublin Airport, Ireland. For doing this
report, porter's five force model, strength and weakness of competitors will be explained in detail
manner.
BACKGROUND
Ryanair is a global airline which gives scheduled passenger airline services between
United Kingdom and the Ireland. According to the case study, the time period when there is a
lowering down of restrictions with the airlines sector, the Ryanair take an advantage of this
action performed by authorities it has adopted a low fare business model by offering low cost as
well as no frills services among the Ireland and London. This cost was adjusted by company in
its operational in order to save cost from internal practices so that it can earn profit even after
offering services at lower price (Klophaus and Fichert, 2019). But due to improper management
of operations it has experienced a drop in its profit share.
1. Diagnose organisational business strategy and evaluate the competitive advantage of the
company
It is essential for a firm to constantly analyse and review its business strategy with a view
to ensure that the strategic course of action adopted by company is aligned with the long term
corporate objective (Caputo, 2019). In this regard, Ryanair is acknowledged to be affected by the
declining quality of its services day by day. In this regard, the management of entity has made
use of a strategic tool named Porter Generic model so as to review the existing corporate strategy
for this low cost airline. The aspects pertaining to this strategic tool are explained in context of
Ryanair as follows:-
Cost leadership: This is a strategy whereby an entity intends to keep the cost of
operations low and provide their organisational offerings to a wide base of audience at least
possible pricing. In this regard, if Ryanair leverages this strategy, it would benefit the low cost
business model adopted by company to appeal to public effectively.
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Differentiation: Hereby, an organisation intends to offer organisational offerings with
unique and creative feature holding significant value for consumers. The execution of this
strategy would provide assistance to management of Ryanair to instil a sense of loyalty and trust
among customers, thereby developing price inelasticity on the part of customers (Milani, 2019).
Focus: It is of 2 types, namely, cosy and differentiation. Cost Focus concentrates upon
creation of internal efficiency in an organisation thereby assisting in withstanding external
pressure. Differentiation focus is keen on making an entity emphasize on differentiating
organisational offerings from rival firms with a view to attain a strategic edge at market place
()Volkova, 2019)
On the basis of above discussion, it has been analysed that Ryanair is currently applying
differentiation strategy strategy in order to attain a competitive edge in market place. However,
the management is concerned as the quality of services sometimes get hampered as a result of
implementation of this strategy within the premises of respective airline.
2. Ability of executives of company to identify strengths and weaknesses of competitors and
strategy formulation
It is the duty of the management of the organisation to analyse the competitors present in
the market along with their strengths and weaknesses. It is necessary to do as this will help in
effective strategic formulation according to the the competitors power which further aid in future
accomplishment of organisational objectives (Calzada and Fageda, 2019). The best effective
model that help in determination of the nature of industry is known as porter five forces. This
model help in ascertainment of overall competitive nature of industry in market on the basis of
the analysis of the power of different parties associated with the business activities of that
business includes suppliers, customers, new entrants, competitors etc. The application of this tool
in respect to ascertain the power of competitors in airline industry is understood from the below
mentioned description:
Power of competitors: Ryanair is an organisation operate their business functions in
airline industries. There are many big airline organisations having good reach and market share
which are operate their operation in same industry such as British Airways and Virgin Atlantic.
So, the power of competitors in this industry against the Ryanair is high. The negative impact of
the same is ascertained direct over its operations which results into less profit and productivity.
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Effective determination of the strengths and weaknesses of these organisations further aid
in formulation of effective strategy. Both the above mentioned organisation have strengths in the
form of large number of employees, fleet, technology and customer base. The weaknesses which
they face is that they are expensive in nature so doesn't target medium level consumers.
The best strategy to execute after this evaluation from the side of Ryanair would be cost
leadership. This will help to target the medium level consumers and improvement in figures of
their earning (ADOM, 2019).
3 Recommendations of potential business strategy
One of the best method or model that can be use by the management of an organisation
for further improvement in their future operations is known as Porter generic. This model has
three different strategies. This is one of the effective model which help the organisation to
ascertain their internal capabilities and use the same to grab competitive advantage in market.
The one which is most preferable for the organisation to adopt is about cost leadership. This will
help the organisation to target over the weaknesses of the organisation where they provide
services at high cost. This strategy help the organisation to focus over medium level costumers
and improve their market share.
RECOMMENDATION AND CONCLUSION
From the above mentioned information it has been concluded and recommended that
company need to build on their customer perception and fly to more in European destinations.
They must work out contact with fuel and oil providers. They also train flight staff in other
operations within the business so that they can switch duties and be more dynamic. Company
must also improves customer helplines which helps them in its growth and success at
marketplace.
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REFERENCES
Books and Journals
Simon, H. and Fassnacht, M., 2019. Price Strategy. In Price Management (pp. 29-84). Springer,
Cham.
Klophaus, R. and Fichert, F., 2019. From Low-cost Carriers to Network Carriers without
Legacy? Evolving Airline Business Models in Europe. Airline Economics in Europe
(Advances in Airline Economics. 8. pp.57-75.
Milani, F., 2019. Internal Business Context. In Digital Business Analysis (pp. 47-77). Springer,
Cham.
Calzada, J. and Fageda, X., 2019. Route expansion in the European air transport
market. Regional Studies. 53(8). pp.1149-1160.
ADOM, A. Y., 2019. Business Environment (MBA). 2nd May, 2019.
Volkova, I. D., 2019. LOCALIZATION OF WEBSITE VERBAL CONTENT INTO ENGLISH
AS A MARKETING STRATEGY. Modern Research of Social Problems. 11(1).
Caputo, A., 2019. Contextualizing Negotiation in Strategy. In Strategic Corporate
Negotiations (pp. 47-63). Palgrave Pivot, Cham.
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