Porter s generic strategies ryanair
Ryanair strategy analysis
This causes some concern, as Ryanair has emphasised that one of the main reasons for removing all the "frills" from its services was so that it could continue to provide cheap flights to customers. By applying these strengths, three generic strategies are resulted: cost leadership, differentiation and focus. Ryanair's "no frills" policy may have to change as they are actively expanding their flight route network and distance. For example, Ryanair depends heavily on its suppliers like Boeing and the various airports for favourable rates of equipment purchases and landing fees. Ryanair therefore needs to have a defensible position in the industry with relation to Porter's 5 Forces. This generates more revenue and lower unit costs per flight. The dynamic needs and demands of customers served to be a challenge to the management. There has been significant number of bad publicity for the company, thus, creating a negative impression to the airline brand.
In addition, the company website has been able to make the company position itself in the global market. Although Ryanair may have had to make mistakes as the "pioneer" company, experience is cumulative, and that only serves to let it become more efficient.
In terms of operations, the EU air transport deregulation allowed the airline for the first time to open up new routes to Continental Europe with over 3 million passengers on 18 routes carried in Additionally, fast paced technological advancement may be a threat to Ryanair as a whole.
Ryanair has the reputation of being the low fare airline in Europe.
Strict cost control is achieved partly by the elimination of "frills", which are offered to passengers travelling via the full-cost operators.
In the case of Ryanair, these three generic strategies had been utilized.
The continuous initiatives of the company in diversification of its revenue resources also open new opportunities to make the business become stronger to outgrow all its rival companies.
based on 74 review