Dogfight over Europe: Ryanair Essay

A. What is Ryanairs strategy and why has it been successful so far? In 1911, Ryanair faced cash flow problem, and was passing game to be bankrupted. However, it found the way to overcome this crisis by transform themselves from ordinary high-price airlines into the lowest price airline in the EU. They directioned on 5 things to rebirth their company.1. Focused on cut down the costs Ryanair aggressively cut closely of its costs in umteen ways. Found the routes and airports that charged low landing fees, and low turnaround costs Chose routes to Secondary airports, low airport feeEliminated all in-flight amenitiesUsed alloy stairs instead of air bridgePaid lower commissions to travel agentsSaved cost in its internal operationsImplemented economies of scale by using one model aircraft and treating all customers equally2. Focused on operating efficiency Ryanair carefully allocate all of its resources and assets to get the highest performance outcome. Optimized airplanes usages by relo cating the planes used in loss-making routes to gain-making routes. Attempted to change magnitude aircraft turnaround rate in many ways Operated only one type of aircraftProvided the newsletter to employees, which contained its and its competitors movements3. Focused on customer satisfactions Ryanair sustained customer care. Even though they are mostly middle-to-low classes who expected less services due to the lowest airfares, they would receive more than their expectation. on that full stop were 160 full-time reservation agents at its call enter at Dublin answered calls Maintained its record for on-time flight due to good-performed aircraft turnaround Received airfares in other currencyHad fewer restrictions to change the tickets4. Focused on ancillary income Ryanair gained extra revenue from other sales and services. In-flight sales beverages, snacks, and traditional itemsAdvertised spaces rentalOther referred fees5. Focused on its employees Ryanair never forgot to sustain an d motivate employees. Imprinted its values to employees. the firms as brutally cost conscious Gave its stock options to employeesRewards system varied with performance, commission, and bodily profits Had lots of job opportunities, e.g. promotion or rotationHad no bureaucracy and hierarchyCompared to its competitors, Ryanair became succeed because it was the first low-cost airlines which provided low airfares that generate increased volume of customers. At the same time, it had maintained a continuous focus on customer satisfactions, cost management and operating efficiencies, leading to the great nature that transfer from mouth to mouth by its loyalty customers. That created more customer and more income, being its sources of fund for reinvest. Also, the extra revenue from sales, advertised spaces renting, and referral fees could support its pecuniary health and accommodate it to sell the ticket more lower price. Moreover, started with people, Ryanairs employees shared the same v alues and goals with their company, cost-conscious with good-services.Sharing the companys benefit with them in like manner motivated them to work better and better. This was the other important foundation for its success. Thats why, Ryanair was success and became very high competitiveness in this market. B. Looking to the future, what should be the strategic concerns of Ryanair? What recommendations would you make to the top management? In my opinions, the most strategic concerns of Ryanair is its competitors. Assuming we were in 1999, at that time, no carrier that were Ryanairs primary competitor. However, in this year, no-frills(prenominal) carriers accounted for 3% of the European air travel market. This implied that the competition would be more intense. I would like to go through each competitors one-by-one. vestal Express It was most harmful competitor. It had many features as same as Ryanair, and some of them were better than Ryanairs, e.g. nine languages services in ticke t reservations, no physical tickets (lower its costs), etc. Virgin Expresss financial lost in 1998 might be resulted from only a shortage of pilots. If Virgin Express could fix that problems, continuously rectify its features, and fully implement cost control, it would become very competitiveness to the market. Suggestion for Ryanair Sustain doing theways Ryanair was, improve quality of service, innovate the ways to reduce costs, and focus more in marketing and creating brand awareness easyJet It was also harmful competitor. It had the same business model concerned about cost control, it gradually grew and was going to change from subcontracting to their own operation by reinvesting.However, its philosophy was wont complete with other low-fare guys. Suggestion for Ryanair Quickly expand the flying routes and grasp that benefits forrader easyJet does. British Airways Go British Airways Go had powerful backups and great brand values. It provided better service in-flight but also sol d ticket at the cheap price. Leading to the price competition in the future. Suggestion for Ryanair The company have to innovate its new unique point to eliminate the problem that it would have faced the loss of its customers to the competitors. It also need to in-depth its group of customers to find the ways out. Also, Ryanair have to be alert all the time. As the market become more intense, only dynamic organization can survive.