Strategic Planning on Ryanair
Executive Summary
In the start of the business, Ryanair considers it itself as an underdog in the competition in an airline. The proprietors are aware in the difficulty of handling the business as well as gaining its efficiency and advantage in the market. But in the continuing effort, the Ryanair found the strategy that brought the entire organization on top. The different approach on marketing strategies gave them the chance to compete in the international market. Through the influence of the stakeholder, the analysis of different environment, and the marketing strategies, Ryanair enable to establish the low-cost fare strategy while at the same time, maintaining their effectiveness in the market.
1.0 Introduction: History & Strategy
Ryanair started as an unstable business and after many years, it became the most profitable airline in the world. The organization managed to reinvent and has become the largest low fares carrier in Europe. Today, the spectacular growth of the airlines reflects in the strong economy of Ireland. Through the different applied strategies, Ryanair kept the ability to lower its costs in their aim to maintain the strong positions in the industry (Roseingrave, 2000).
2.0 External Analysis
In the macro-environment and the industry analysis of the business, there are factors that influence the organizations decision to establish the strategies and performance. Due to those factors it is natural for the organization to set standards that made them label as “The Ryanair Effect”. Part of the strategies of the organization is to safely deliver the passenger in a convenient and inexpensive form of transportation in the world. The idea of low cost airlines are based on the idea and probably demands of the people to fly more often if the expenses is not that high or affordable for everyone.
Engaging in the low cost strategy is to fly mostly to and from airports that are not necessarily the busiest place which is also referred as the secondary airports. Ryanair proved that operating in the secondary airports is cheaper than the bigger major airports and also less complicated to make a maneuver on their aircraft. And with this strategic approach, Ryanair is the most suggested airlines when it comes to low-cost marketing (de Puget, 2003). Ryanair Airlines also managed to gain support from their key stakeholders, as their business partners, and winning their favor to make their plans possible. It is part of the organizational culture to understand the importance of each stakeholder and the benefits they might realize in working with them. And in a broader sense, anticipating the people’s reaction in their project may be build a strong relationship and winning their support.
3.0 Resources
In the combination of the corporate social responsibility and hardware and software systems, Ryanair managed to deliver the efficiency in their customers. Ryanair Airlines and other airlines that falls in the category in servicing the people through the use of aircraft, has always been responsible in delivering the tourists and the other individuals to their point of destination with full of satisfaction. The customer satisfaction is not only based on the affordability of the flying tickets but also on the experience that the airlines will leave to the clients especially when they are first-time flyers. In addition, the no-frills methodology used by the Ryanair has also improved the efficiency and productivity. The traditional flight services like seat allocation, complimentary drinks and meals, and free newspapers have been eliminated. Instead, Ryanair exchanged it with charging the services they offered to the customers for in-flight services and other travel expenses such as travel insurance (Dhalla, 2009). Ryanair’s cost advantage are very significant and other low-cost operations began to emerge and pushing the traditional way of offering services.
4.0 Strategic Situation
In the emerging need of the timeliness and accuracy, Ryanair managed to cope with the changes in the technological innovation and promoted the use of the internet, databases, and websites to accommodate all of the customers as well as their target customers. The growth and diversification of Ryanair would not have been possible without reliable computer systems.
5.0 Strategic Choice
The marketing strategy of the Ryanair had been critically assessed by its stakeholders and formed a market busting strategy that made the entire organization of the Ryanair that made them one of the premier airlines in Europe. Aside from the low cost and secondary airports offered by the organization, there are other business approaches that Ryanair applied to fill up some of their losses. Furthermore, the low cost and no-frills offer of the Ryanair gives them an advantage against their competitors.
References:
de Puget, V., 2003. French Accent – Ryanair Slow on Emotion, Issue 20 Oct. [Online] Available at: http://www.brandchannel.com/brand_speak.asp?bs_id=72. [Accessed 08 Feb 2010].
Dhalla, M., 2009. Ryanair MarketBuster. [Online] Available at: http://ritamcgrath.com/ee/images/uploads/Ryanair_Report.pdf. [Accessed 08 Feb 2010].
Roseingrave, E., 2000. Ryanair: The Growth Airline of Europe. [Online] Available at: www.tcd.ie/Economics/SER/sql/download.php?key=165. [Accessed 08 Feb 2010].
Credit:ivythesis.typepad.com
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