Introduction

Name and Number of Student

Date of Submission

Table of Contents

Reasons Behind the success of Ryan Airline: 3

Sustainability of Ryanair Strategy: 4

Recommendations Ryanair’s approach to changing environmental circumstances: 5

References. 7

Reasons Behind the success of Ryan Airline:

Ryanair is one of the largest, leading and reputed Irish ultra-low-cost airlines and founded in the year 1984. The company is considered one of the successful in the industry due to its strategic leadership style. The company had adopted a cost cutting culture which helping it in attracting as well as retaining a number of customer successfully. For example, it executed a low fare strategy. The company constantly focused on cutting different types of operating costs. Along with this, it is also important to know that, it also adopted changing market condition i to be success in the market. Moreover, it is also found that, Ryanair is mainly pays attention on using Boeing 737 airplanes in their fleet. This allowed company to give greater discounts as well as offers to customers. Additionally, the company has a number of flights between England and Ireland for its passengers (Bartsch, 2013). This helped in increasing the amount of passengers and attaining the competitive advantages over its competitors such as: British Airways and Aer lingus. Apart from this, the following are the main reasons that make Ryanair more successful than others such as:

• Low Cost Operation: Low cost operation of Ryanair assisting the company in maintaining and increasing the profit margins in the industry. For case, all operations mainly focus on enhancing efficiency and minimizing costs.
• Point-to Point: Ryanair is only the airline company that uses point to point flight routes. It indicates that, the company avoided stopovers. This allowed company to avoid issues of luggage management. With the help of this strategy, the company reduced a additional operational costs.
• First Move Advantages: Ryanair is the main airline company in the Europe that introduced low fares for passengers. The company has first mover advantages by negotiating better rates with airports (Plunkett, 2007).
• Michael O’Leary’s Leadership: Michael Kevin O’Leary is the CEO of Ryanair whose clear understanding about the Southwest model helped the company in becoming the success. He guided how the company should adopt low cost strategy to become leading low fare airline in the industry.
• Use of no-frill’ concept: The main success behind Ryanair is the adaptation of no-frill’ concept which helped the company in reducing the costs as well as expenses of airline services. This allowed company to provide cheaper and excellent services to a range of passengers. For example, the company operates its flights only with Boeing 737 which provided a number of advantages such as: saving money for inventory holding, maintenance personal and trainings for pilots etc.

Sustainability of Ryanair Strategy:

It is true that, Ryanair’s strategy is sustainable and can be sustainable for a long period of time because of a number of specific factors including R&D on aircraft, cost conscious culture; low price etc. gives competitive advantages. For instance, it is providing excellent airline services with low cost and no other airline has been able to come close. The company is consistently achieving competitive advantages over its competitors in the industry.

• Low Price/Cost: Ryanair business model is based on the low cost pricing. All the strategies adopted and executed by the company is heavily depend on this business model. All business strategies guide the company to provide excellent airline services at the discounted and reduced price to passengers.
• Cost Conscious Culture: It is found that, the low cost culture has feast throughout Ryanair’s organisation. For example, all the strategies, policies, norms, standards, structure has in place will make this culture more sustainable (Mrázová, & Kazda, 2021).
• Size: The Company has great power in the market which provides it benefits of size that assist the company to sustain its low cost operations in the market and industry. It can also use its size to command terms and rules with its key suppliers.
• Leadership: All the people of the company including the management, employees, and senior managers are fully dedicated and committed to maintain as well as sustain the low cost culture within organization by adopting best practices and strategies successfully.
• Experience Curve: The Company had invested millions of dollars in maintaining and building low cost operation experience curve which will allow the company to sustain forward.

Recommendations Ryanair’s approach to changing environmental circumstances:

Yes, I will suggest some major changes to Ryanair’s approach to changing environmental circumstances.

• Improving Customer Perception: It is important and essential for Ryanair to pay attention on improving customer perception. For case, the company has low pricing customer but competition in the market has increased. It indicates that customer of the company can switch to another carriers. It may be more costly for passengers but Ryanair have poor customer relationship and services policies and strategies. So, there is need to improve company image to retain and attract customers.
• Succession Planning: It is observed that, the company had faced a number of issues which affected the success of the company. So, the company should identify the critical positions within the company and develop strategic action plans for its people. For case, the company must focus on individual development to attain strategic business objectives (Fukui, & Miyoshi, 2017).
• Marketing of Ancillary Products: The Company must also leverage its corporate website in order to effectively and successfully sell ancillary products. It will help the company in improving advertising revenue via website.
• Public Image: In the present time, customers are becoming more aware about the services provided by a company. They collect information and data from the online survey and reviews. The company should focus on improving its current public image by focusing on reliability, comforts, and safety measures.
• Change of low cost Model: The Company is using ‘no-frill’ concept in order to offer low cost flights to its passengers. But, maximum number of passenger prefers flights with more comfort, leg space, and friendly staff. So, the company should offer more comfort as well as friendlier personal. Apart from this, it is also important for the company to improve customer value by offering free meals, soft drinks or friendlier personal on their flights (Korynevska, 2020).
• Change of Secondary Airports: The Company is mainly focus on using of secondary airports which cost a lot of time and money. Today, most of passengers prefer to reach their destinations without using secondary transportation. Hence, the company must focus on changing their deals with the secondary airport. It will also help the company in attracting more and more valuable customers and results in enhanced productivity.

References

Bartsch, R.I.C. (2013). International Aviation Law: A Practical Guide. USA: Ashgate Publishing, Ltd.

Plunkett, J.W. (2007). Plunkett’s Airline, Hotel & Travel Industry Almanac 2008: Airline, Hotel & Travel Industry Market Research, Statistics, Trends & Leading Companies. USA: Plunkett Research, Ltd.

Fukui, H., & Miyoshi, C. (2017). The impact of aviation fuel tax on fuel consumption and carbon emissions: The case of the US airline industry. Transportation Research Part D: Transport and Environment, 50, 234-253. Retrieved from: https://dspace.lib.cranfield.ac.uk/bitstream/handle/1826/11392/CERES_embargo_text-2016.pdf?sequence=1

Korynevska, T. (2020). Strategy of regional airfields of civil aviation of Ukraine development. Retrieved from: https://dspace.nau.edu.ua/bitstream/NAU/44926/1/FTML_2020_275_KorynevskaT.B..pdf

Kukharenko, A. (2020). Technologies of airlines and travel agencies interaction. Retrieved from: https://dspace.nau.edu.ua/bitstream/NAU/44940/1/FTML_2020_275_KuharenkoA.pdf

Mrázová, M., & Kazda, A. (2021). The direction of airlines business models–up or down?(Post Covid-19 crisis–case study). INCAS Bulletin, 13(1), 263-274. Retrieved from: https://bulletin.incas.ro/files/mrazova__kazda__vol_13_iss_1.pdf