The competition between low cost airlines and full service airlines within the airline industry is becoming fierce. Since 2000, traditional airlines have gained low profits due to the expansion of no-frills. In addition, a number of incidents such as 9/11 have also influenced several businesses including the aviation sector but in fact, some European low cost airlines such as Ryanair did not become the victim of economic downturn because of their economical operating costs.
Over the past decade, extensive discussion on obtaining a competitive advantage using innovative marketing strategies is a matter of thorough examination (Obermiller and Burke, 2008). In the beginning, customers may be consistent with low customer service standard against …show more content…
It can help to reveals an important complementary relationship among environmental models and the resources-based model. Environmental models will separate those company attributes that exploit opportunities and neutralize threat. Thus, they specify what company attributes may be considered as resources. The resources-based model then suggests what additional characteristics these strategies must possess if they are to develop a sustained competitive advantages.
In the case of Ryanair Holdings, they have decided to apply several key elements strategies like low fares and at the same time still put their commitment to safety and quality. Offering low price with high quality of products is give more value to this company. It is very helpful for them to attract the consumers and it will help them to sustain in competitive advantages directly. This both valuable strategies will improve the company’s efficiency and …show more content…
First, though it may be impossible for a company to imitate exactly another company strategy, it may be able to substitute a similar strategy that enable it to develop and implement the same strategy. Clearly, a company seeking to imitate another company’s high-quality top management team would be unable to copy the team exactly. However, Ryanair might be able to develop its own unique management team where they might do some innovation based on other company which apply a better strategies. By having more improvement for strategy, sooner or later there will be no more substitute strategy because Ryanair already create the best one.
Second, very different firm strategy can become strategic substitutes. Even though Ryanair might create the best strategy which have no substitutes, it still have risk where the competitors might copy exactly their strategy. But still Ryanair can sustain in competitive advantages since Ryanair was the first mover which can take a lot of advantages compared to the competitiors. In addition, Ryanair is also think about providing ancillary services where it can assist this company to sustain in market for a long
Over the past decade, extensive discussion on obtaining a competitive advantage using innovative marketing strategies is a matter of thorough examination (Obermiller and Burke, 2008). In the beginning, customers may be consistent with low customer service standard against …show more content…
It can help to reveals an important complementary relationship among environmental models and the resources-based model. Environmental models will separate those company attributes that exploit opportunities and neutralize threat. Thus, they specify what company attributes may be considered as resources. The resources-based model then suggests what additional characteristics these strategies must possess if they are to develop a sustained competitive advantages.
In the case of Ryanair Holdings, they have decided to apply several key elements strategies like low fares and at the same time still put their commitment to safety and quality. Offering low price with high quality of products is give more value to this company. It is very helpful for them to attract the consumers and it will help them to sustain in competitive advantages directly. This both valuable strategies will improve the company’s efficiency and …show more content…
First, though it may be impossible for a company to imitate exactly another company strategy, it may be able to substitute a similar strategy that enable it to develop and implement the same strategy. Clearly, a company seeking to imitate another company’s high-quality top management team would be unable to copy the team exactly. However, Ryanair might be able to develop its own unique management team where they might do some innovation based on other company which apply a better strategies. By having more improvement for strategy, sooner or later there will be no more substitute strategy because Ryanair already create the best one.
Second, very different firm strategy can become strategic substitutes. Even though Ryanair might create the best strategy which have no substitutes, it still have risk where the competitors might copy exactly their strategy. But still Ryanair can sustain in competitive advantages since Ryanair was the first mover which can take a lot of advantages compared to the competitiors. In addition, Ryanair is also think about providing ancillary services where it can assist this company to sustain in market for a long