Solution Preview The response address the queries posted in words with references. 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'.
Their strategy is a low cost, no frills airline. Their vision is to have people fly for free. Cost Focused - Used SouthWest Airlines Model It really addresses the market for flyers who looked for a cheap basic and efficient service rather than luxury.
It does not try to complete in all market segments and so is focused.
It could be said their strategy is 'cost focused'. They fly point to point to mid-sized cities using secondary airports. After about 5 years of operation they were making a loss but under the direction of their now CEO Michael O'Leary they rejigged their strategy to one of low cost following the SouthWest airline model.
Disciplines of Market Leaders Treacy and Wiersema in the great book 'Disciplines of Market Leaders' state three steps to be a market leader - Choose your Customers, Narrow your Focus and so dominate your market According to the consultants Treacy an Wiersema, there are three ways to determine or classify a Competitive strategy.
They call them value disciplines and they are: Ryanair Business strategy fits the Operational Excellent Model of high reliability and dependability with fewer flight cancellations, great punctuality and fewer lost bags than most airlines.
It operates on a highly efficient basis too with high aircraft utilisation, minimum staffing, and maximising their use of the Internet to keep booking costs down. The turnaround time on the ground again is minimised. The Ryanair strategy attempts to keep costs low by gaining discounts and concessions from plane suppliers Boeing and Airports.
They operate only one type of aircraft to keep maintenance simple and cost effective with bulk buying of a single set of spares. The flying crew are interchangeable as they only have one aircraft type and consequently their training is reduced and simplified.
They outsource where they can to keep their productivity high and have their computer systems well integrated. Leadership Makes a Difference In terms of low marketing costs, their CEO Michael O'Leary gets a lot of free publicity with stunts and being publicly aggressive against the competition and authorities.
They use full page ads to promote themselves offering bargain prices and often attacking the competition. They are sometimes accused of hidden costs but claim that this is false as it is clearly stated on their Internet Sales system.
So far they have also a good safety record, have made good efforts in noise level control and Green House Gas carbon emissions. Making the most of Add On Sales They maximise the opportunity to make ancillary revenue with the sale of car hire, ground transportation, hotels and travel insurance, as well as on board sales food, beverages and scratch-cards and excess baggage revenues.
Summary In summary, the Ryanair business strategy is one of fanatical cost reduction and efficiency such they can offer a basic low cost reliable and dependable service which is in high demand.Ryan air is an Irish airline competing in the fairly recent development of the European budget airline industry.
They are one of the key players within the market, and perhaps the most profitable. Ryan air has effectively used this strategy to increase its customer base. Also `the effect of internet booking can also be seen here as customers are able to compare prices with other competitors and note any discrepancies.
Ryanair Marketing Mix Product or Service Low cost, no frills air travel to European destinations. There is no free food or drink onboard.
Other revenue fronts — the company has deals with Hertz car rental, hotels, phone cards, and bus tickets. About 16% of profit is made this way. New marketing chief Kenny Jacobs aims for a new style of revamp for the airline that carried 81 million people last year.
Comprehensive company analysis to gain knowledge about company information, company profile, business model, business plans and marketing strategy. Utilizing strategic tools like SWOT and PESTLE, the analysis strives to evaluate the performance of Ryanair . Ryanair’s CTO on why he is still confused by the marketing department Mobile World Congress Ryanair’s chief technology officer says digital has transformed the business over the past four years, but he admits there is a disconnect between tech and marketing.