The paper "Ryanair Has Earned Its Wings" is a great example of a Management Case Study. The airline industry in Europe is highly competitive but Ryanair used unique traits to penetrate the European market as the first step of its successful journey. It established itself as the first European airline that offered a no-frills service. This service is one that omits unnecessary elements of luxury so as to cut down on the costs of travel down to an attractive price. This enabled Ryanair to secure itself a larger segment of the European market than other existing airlines as most customers preferred the budgetary option when it came to traveling to various destinations.
Ryanair also positioned itself strategically to enable it to attract customers at both separate ends of the routes they travel. This has allowed it to increase its market share as well as expand the recognition that its brand name carries. The customer service delivered by Ryanair is one of high quality and great performance when compared to other airlines in Europe. It strongly concentrates on the execution of its services and operates from uncongested airports that save on time and improve its efficiency.
By this Ryanair has achieves better punctuality, fewer cancellation of flights, and fewer losses of bags. This increases the satisfaction of its customers leading to stronger customer loyalty. The low operational costs that Ryanair enjoys also play a major role in the success of the airline. To enhance such low costs, Ryanair has a highly productive workforce that is constantly motivated to perform to better standards. The airline also outsources the tasks relating to aircraft and passenger handling to more expert contractors.
By focusing on airports that are cheaper to access, the overall operational cost is also greatly reduced. Is Ryanair's strategy sustainable? The strategic positioning of Ryanair in the European market as the airline that provides high-quality service at low affordable costs will enable it to run smoothly in the coming years. Even though competitors may adopt this fare reduction strategy, the market share possessed by Ryanair gives it a cutting edge over its competitors. Customer relationships within the Ryanair environment are pleasant but with the growth of the passenger number, Ryanair has to nurture the existing relationships to avoid letting its position in the market slip.
The highly esteemed airline also has to keep a close eye on the business environment that surrounds them to keep abreast of any changes that may affect them. Ryanair also has put in place a leadership structure that ensures its personnel are highly motivated and energized. It upholds the principle of having a pleasant working atmosphere in the airline premises. This leadership style was introduced by Michael O’ Leary who held a strong vision for the airline and successfully converted this vision into reality.
By setting this pace in the realm of leadership, Ryanair will not find it a challenge to continue its trail of success. With its business outlook, leadership, and current strategies, there is no reason as to why Ryanair should not flourish.
Davey, Jenny, ‘Ryanair has earned its wings – investors should set autopilot’, The Times, 6 January, 2006.
Fred R. David (2011). Strategic management: concepts and cases. 13th Ed, (Pearson: Prentice Hall, 2011).
Johnson, G., Scholes. K. and Whittington, R. “Exploring strategy: text and cases, 9th Ed” Ryanair: The Low airfares airline- future destinations? Ed. Elanor O’Higgins 2010. (Pearson: Prentice Hall, 2011), 618-629.