Essays on The Success Story and Strategies of Ryanair Case Study

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The paper "The Success Story and Strategies of Ryanair " is a great example of a marketing case study. Ryanair was the first budget airline in Europe that was modeled after the southwest carrier of the US. It is said that O’ leary, Ryanair’ s CEO, made a pilgrimage together with several other airline business executives to Dallas in the 1990’ s to meet southwest’ s founder Herb Kelleher. The Ryanair case is one of great interest as far as strategic management is concerned that has a lot to do with the economic, organizational and human context of strategy.

It is a case that best illustrates a strategy based on the best allocation of resources assets and competencies, adding value to customers and delivery of considerable strategic gain. The Ryanair case also sheds light on the difficulties and obstacles that may come in the way of attaining and upholding such gain against a backdrop of the European airline industry. It is a case that brings together important elements in modern thinking on strategy and outlines issues of managing cost, prices and the expectations of customers.

Ryanair’ s story has been outstanding in Europe’ s entrepreneurial sector for many years now. Besides, Ryanair has also developed an opinionated way of communication that makes use of advertising and media in making public its transformation of the air industry. Both loved and hated by Europeans it has grown to become one of the world’ s most successful airlines even though it’ s based in Europe alone. It is ranked Number 11 in the world in terms of profits and number 2 in terms of operation. CEO Michael O’ leary holds a net worth of 636 million pounds, which is a good reward.

Ryanair is considered a success because unlike other airlines, it managed to bring flying within the people’ s reach. Ryanair was begun by Tony Ryan, a former executive of Aer Lingus who amassed his wealth through the brokerage of aircraft in 1985. It started with a one 15 seat aircraft plying between Waterford Dublin and London and a year later acquired a license to fly from Dublin to London though not without opposition at first from Aer Lingus which held a monopoly of the route and which led to a bitter competitive rivalry between the two airlines for many years. The years that followed were not without challenges from fierce competition from already established airlines in the form of price cuts that leaned on the savage side to the emergence of discount airlines other than itself, not to mention oil prices increases, the gulf war, September 11 aftermath and other socio-economic issues.

Despite all these, the airline grew and by 2007, its network of routes covered most of Europe making it the largest international airline in terms of passengers. 2.0 Strategy Ryanair’ s business model, which is the source of its success, is very simple; it offers the lowest fares possible and accomplishes this through a firm focus on the control of costs coupled with safety measures and in 2008 it had an impeccable accident free record.

Being the first low-cost airline in Europe, it also benefitted from the deregulation of open skies across the continent of Europe. Its business model has enabled the company to establish itself in the European market through improvement and expansion of its low fares services that generate an increase in passenger traffic while at the same time cutting down on costs and focusing on making operations more efficient.

References

Air Transport Management. (2005). Passengers’ perceptions of low cost airlines andfull service carriers: A Case study involving Ryanair, Aer Lingus. Journal of Air Transport Management , 13-14.

Alamdari, F. & Fagan, S. (2005). Impact of the adherence to the original low-cost modelon the profitability of low-cost airlines. Transport Reviews , 379-388.

Alderighi, M., Cento, A., Cheng, R., Rietveld, P. & Nijkamp, P. (2004). The entry of low cost Airlines. Tinberg Institute Discussion Paper .

Gudmundsson, V. (2004). Management emphasis and perfomance in the airline industry: an exploratory multilevel analysis. Chicago: Transportation Research.

Hagele, K. (2006). Marketing Plan for Ryanair; Diploma Thesis. Norderstedt: Druck und Bindung.

Pitfield, E. (2005). A time series analysis of the pricing behaviour of directly competitive 'low-cost' airlines. International Journal of Transport Economics , 30-32.

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Zhao, W. Z. (2000). Optimal dynamic pricing for perishable assets with non homogeneneous demand. Management Science , 370-390.

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