Case Study- “Ryanair: the Low Fares Airline- Future Destinations?”
The following assignment is based on the Case Study below
“Ryanair: the low fares airline- future destinations?”
By Elanor O’Higgins
Questions to be discussed: I. Critically Review the leadership style of Michael O’Leary. II. Review the concept of value chains and core competences and explain how knowledge of these concepts might assist Ryanair in its strategic development. III. Consider using suitable models the competitive position of Ryanair.
[Note: The questions above are discussed in a flowing matter of the subject and not necessary answers them separately. They are all interrelated and go back and forth, mainly question no two and three.]
Since its inception in 1985, …show more content…
Human Resource/Service * Staff incentives (i.e. bonus and rewards) based on number of hours flown * As a result, staff work an increasingly amount of hours and enthusiastically sell more onboard products * Reduced cost by utilizing low-cost facilities (i.e. boarding stares) * Maximize aircraft utilization * Increased pace of turnarounds * Decrease in delays and baggage loss * All of the above results to the added value of the customer’s satisfaction rate
Added Value: New Aircraft= reduced carbon emission planes by 50% and reduced noise pollution by 45% respectively. Direct competitors such as Aer Lingus, Easyjet, BA and others have tried to adapt similar Ryanair strategies such as the extra fee at the checking desk if not registered online or pre-booking seat online for additional charge. Despite their desperate attempt they shall always remain one step behind, reason being for the simple fact that by the time favorable result begin to show for the competition- Ryanair already made plans of expanding their current strategies more in depth (De Wit, 2010).
The competitive position of Ryanair using Suitable Models:
Porter’s Five Forces:
Porters Five Forces model helps to gain a holistic view of an industry by considering barriers to entry, supplier power, buyer power, threat of substitution and competition (Johnson et al.,