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Ryan air's Strategy

I need help with the following question of the Ryanair. You can find more details from the given link.

www.ryanair.com/about us/investor relations/presentations, and information about the company's performance.

Strategic issues :

Who are Ryanair's direct competitors?
Who are Ryanair's indirect competitors?
What are Ryanair's competitive advantages in relation to these?

Marketing :

How does Ryanair advertise, what is the advertising strategy?
What is the company's image?
How has consumer behaviour evolved in response to the low cost offer and Ryanair?

International market share :

How far in terms of geographical area and flight duration can the low cost model carry Ryanair? Which markets offer future growth?

Financial benefits of low-cost model :

Analyse the information on pages 26 to 29. What are your conclusions regarding the performance of the company and the strengths and weaknesses of the low cost model?

Why can Ryanair afford to give away free or special offer tickets?

Legal and regulatory framework :
What has the impact of the European single market been on Ryanair's development, especially the liberalisation of European skies (1980- 90s)?

Why are state subsidies described as illegal? For what reasons does European competition law forbid state subsidies?

Operational approach : technology, and HRM :

Summarise the way technology allows Ryanair's model to function (aircraft, airports, internet, IT) and the impact this has on its human resources policy.

I need guideline to sort out these questions.

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The response address the queries posted in 1719 words with references.

//Before writing about the 'strategic issues' faced by the Company, we will write about the 'Company Overview'. Then, we will discuss about the strategic issues by focusing on the direct and indirect competitors, as well as, the competitive advantage related to the strategic issues. We will also write about the marketing strategy of the Company by focusing on the 'Advertising Strategy'.//

Ryan air's Strategy

Introduction

Ryanair was founded by Irish businessman named Tony Ryan. It was started as traditional airline having fifteen seats propeller aircraft. From 1986 to 1990, it grew rapidly and opened new roots and took new aircraft. In 1988, Michael O'Leary joined the company as a financial director. It successfully emerged as a low fares airline.

Strategic issues

In any business, competitors play an important role and provide a spirit to do the business. Ryanair also has some competitors. Its direct competitors are: Are Lingus and British airways.

The indirect competition is provided by companies such as Easy jet, Go and virgin Express and the high speed train in France has emerged as a significant competitor.

Ryanair enjoyed competitive advantage because it has used regional airport as winning formula to maintain its low cost. The development of the Ryanair airline has continued because of the attractiveness of low fares, passenger's willingness to sacrifice traditional airline services for availing low fares and Ryanair's ability to reduce and control the costs. Another competitive advantage was provided by Office of Fair Trading pricing; there was a technical issue with the Ryanair, which prevented it from changing booking process immediately. As a result, it displayed fictitious fares (Low cost strategy of Ryanair, 2008).

Marketing

Ryanair being low cost airline target the adult customers as they are young, sensitive to the price, well educated and surf the websites. Ryanair used comparative advertising, which is rarely used in Europe. For example, in Italy, they published that fairs, which they offer is 90% cheaper than Alitalia. It published several advertisements in national newspaper of Belgian. Apart from this, it focused on the price comparison and published the case indicating huge difference between the two airlines and it resulted to huge publicity. It also played on the slogans by giving taunts to other airlines for example it commented that the BA's can make the sky nicest place on this earth. On this, the Ryanair claimed to make sky the cheapest place on earth.

Ryanair promotes its lowest fare on multilingual websites and gives heavy promotions on the home page.

//Above, we discussed about the strategic issues and marketing strategy of the Company. Now, we will write about ...

Solution Summary

The response address the queries posted in 1719 words with references.

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