Assessing Strategic Analysis About Ryanair Airways

Assessing Strategic Analysis About Ryanair Airways The Ryanair is started by the Ryan family in 1985, with share capital of one pound and only with 25 colleagues , they started daily basis flights from Waterford in the Ireland to London Gatwick, with 5000 passengers on the route . The company grow further with high competitors British Airways and air Lingus . It is operating in a highly competitive sectors . but after 3 years of fast industrial growth , company increasingly got the numbers of passengers. with the price and routes competition they face  £20mn losses and it leads thinking about restructuring , Ryanair was take models from southwest airlines low cost leadership model .Under the new management team with new CEO Michael O’Leary rethink and Launch a New LOW COST , NO FRILLS Strategy . In 1997 the EU Air transport authority allows the Ryanair to first time to operate 18 new routes in European Continental area. They took many corrective action against cost reduction Eg no free drinks ,foods, and other facilities. R yanair got good response from all European passengers who likes frequent , quick and Low cost Travel . Ryanair overtakes BA and Air Lingus in the Dublin – London routes . Ryanair achieves their objective in a short period , they won many awards and positions in airlines industry, Ryanair got good name for punctuality. consistently the organisation expands operations , therefore in become very famous airline in the world ., and currently Ryanair operating 24 countries 436 low fare routs carried nearby 60mn people . Ryanair’s Strategy : â€Å"Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service†(Ryanair.com)The Ryanair key strategies. Industry Leading passenger service High frequency on short- haul routes. Significantly providing a service with very Low fares . – low operating costs, addressing aircraft and equi pment, personnel productivity, customer service costs and airport access fees Use the internet effectively Commitment to the safety and quality maintenance . Expand the operation results via Ancillary services. Ryanair offering a highly differentiated product with very lower fare, which increasing their competitive advantage to maintain competitive position on over its competitor. The firm makes to claim to their market area by marking Europe’s first no frills airline service.(Ryanair.com). Sustainable competitive advantage : Cost reduction Strategy: The Ryanair has following cost reduction strategy for achieving its goal for retaining their competitive position in airlines industries . there is five main functional factors like Airport charges , contracting out services , fleet commonality , managed staff costs and marketing cost .these are the areas they are giving great focus to improve low cost operation . According to fleet commonality the airways using particular type o f aircraft which controls the cost and limits the cost for employee training and development , maintenance cost and managing spares , giving more flexibility to scheduling the duty crew and aircraft. The Ryanair using Boeing 737 series to operate more numbers of passengers, and it allows 25% of increased their passengers with guaranteed 15 years of operating life .the old fleet took more maintenance coat and less fuel efficient , according to EU noise reduction requirements, the Ryanair fleets are required to install hushkits to avoid noises , it take more cost for installation almost $20mn , the increased weight might leads by negative figure of fuel efficiency .