Introduction This article is focusing on the Ryanair case study in addition to understand the main model and values in the strategic management field. In addition, Ryanair is founded in 1985 and it’s an Irish low cost airline which has become Europe most popular aviation providers (Eleanor, 2016). 1. Resources The resources of an organisation are those assets that deliver value added in the organisation (Lynch, 2015). According to the resource-based view, firm performance is achieved through competitive advantage that derives from the application of resources that are valuable, rare, difficult to imitate and unable to substitute (Barney, 1991). 1.1 Types of Resources Tangible resources A secure financing capability allows the firm to guarantee …show more content…
Ryanair increase the number destinations operated because of the creation new branches located in different countries. Ryanair management has a control system that supports the implementation of leadership, this includes tight cost control system, performance objectives, long run goals and objectives, activities to deliver a unique mix value, flexibilities and cost, operational strategy modernised, commitment to low cost travel and in addition, allocation of resources for carrying out extraordinary growth of the business. 1.4 Conclusion To be successful in an increasingly competitive environment, Ryanair has to be more adaptive and innovative than ever before in providing superior quality service. Ryanair should develop its market globally. Ryanair resources and capabilities combined them to make more competences in low cost strategy to enjoy profit margin. However, the current strategy focuses on the benefit of a cost leadership generic …show more content…
Moreover, power and market cultures have not altered since its formation and the CEO transformed the company’s cultural artefacts, values and basic assumptions. Control- the CEO, Michael O’Leary makes all the vital roles and Ryanair management adopts a strict power over its employees. Ritual and Routines- the daily tasks are completed in less time. However, Ryanair empowerment remains an integral part of a strategy for motivation and commitment. The Paradigm- cost cutting policies are applied in every organisation aspects. The introduction of the self-sustaining and self-enforcing culture are the collective experience of competition in the airline industry. 3.5 Conclusion In conclusion, it is established that the sustainability of Ryanair depends on the fact that some employees are driven to work in this major carrier firm as they feel associated by culture and style of the occupation. However, autocratic leadership style of Michael O’Leary known for strict decision on employees and has the total command of the team. In addition, good culture within organisation remains important building block that requires to gain
Generally speaking, the launch strategy of Ryanair was not the best one for that moment in time. They began operations between Dublin and London, in a very saturated market, which was already served by two competing and very experienced companies owned by the governments:
Ryanair consists of a centralised functional organisational structure. Normally, employees positioned within a centralised functional
Low fares- This is a result of lower costs, enabling Ryanair to offer lower costs than their competitors. If Ryanair can replicate their current cost model which has proved so successful in the European market and transfer it into transatlantic routes, they could offer flights at a significant amount less than Delta and BA.
The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or
Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14-seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low-fare segment market. It initiated service from London’s secondary airports. In terms of competition, Waterford and Gatwick didn’t pose any challenges.
He suggested that sustained competitive advantage derives from the resources and capabilities a firm controls that are valuable, rare, imperfectly imitable, and not substitutable. He further added that the resources and capabilities can be viewed in form of tangible and intangible assets. There are four different categories of resources financial, physical, human, and organization.
Set up in the year 1985 at a capital of 1 pound with a staff strength of 25, Ryanair is today the World’s favourite and most commonly used airline which operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft and is expected to increase it by another 64 in 2 years. Ryanair currently has staff strength of more than 8,000 people. Its passenger base has been increasing
1. Ryanair’s domain in relation to the external environment and sectors of concern for the company
The purpose of this report is to comment at the first part how Ryanair achieve its competitive advantage through the RBV analysis (Barney,1991), the second part will assess its approach to the diversification through the Ansoff matrix , the third part will discuss the company’s organisational culture using the cultural web modeland last part its internationalization strategy.
Michael O Leary uses a centralized management style in the company which is also used a functional structure. The organisation structure of Ryanair is tall. As illustrated in my diagram Michael O Leary is the CEO of Ryanair and he deals directly with the chief financial officer, head of marketing, head of customer service, head of pilots union and all the other departments displayed in the structure. A functional structure is a structure that groups people in different departments or functions because they all share common skills or they can make use of the same resources. The members of these teams working in these different departments become very skilled and become more specialized within each function. My reason for choosing functional structure for Ryanair is that there no real hierarchy in the organisation, this improves the channels of communication and ensure there is no confusion. Michael O Leary makes the decisions in the firm and uses a very hands on approach in the business by dealing with other managers in the business on a day to day basis. If any problems are ever encountered Michael O Leary would deal with the problems internally. Staff within the company are also matched with their expertise and assigned to a certain group such as marketing, finance etc. A functional structure helps organisations to group tasks into functions to increase their effectiveness in which the company will be allowed to reach their company goals such as providing customers with cheap flights with excellent customer service. As Ryanair grows in size there may well be more departments added to the structure as there will be more employees and more roles and responsibilities to be
This report will give the brief introduction on Ryanair an Airline company and Chaudhary Group which is dealing different products and services. We will be giving discussing about the strategic theories followed by Ryanair Airlines to achieve their goal and how it succeeded on it. On second topic we will be discussing about the business model innovation of Chaudhary group and how they are achieving their goal and doing further development with many more products and services.
1. In-depth environmental analysis of the European Airline industry and discuss the implications for the budget sector and especially for Ryanair. 2. An integrated understanding of the functioning of a company – its human and technical operations, leadership, customer relationships and financial structure. 3. Implications of the internal functioning to create viable strategic positioning and discuss any changes to Ryanair’s approach to ensure an improved sustainability 4. Evaluate the strategic leadership style of Michael O’Leary
A unique cost cutting policy would be the main core competence of Ryanair. It refuses to provide any meal vouchers or hotel accommodation for flights which are delayed or cancelled for reasons beyong Ryanair’s control in order to reduce the operating cost. (Ryanair, 2011) Meanwhile, Ryanair is using LFA business model to design the size of its
Now I am going to discuss Ryan air’s (RA) current strategic position by analysing its macro (external)and micro (internal) environment.
Ryanair has always managed to come up with cost effective strategies which helps it to maintain a competitive advantage over its rivals. It also considers the present environment as the basis for formulating its strategies, for example, the airline made an effort to gain soccer fans as its customers by announcing a special return flight for all Arsenal fans from London Stansted to Barcelona Girona, so that they can watch the club’s vital champions league match in Barcelona on the 6 April, the flight would leave from London on 6 April at 8:30 am and