Section 1: VRIO Analysis of the airline company “Ryan air”

        For the development of best strategies, the ryanair internal strategic capabilities must be consider and observed in detail. VRIO analysis are going to used to determine the competencies and resources of the organization and this model help to determine the performance of many functions within the organization and analyze the resources of the organization. The resources of the organization include technological, intellectual, financial, organizational, reputational; and physical. On the basis of given resources Ryanair develop its core competencies and properly develop a competitive advantage. And to determine the performance of all resources VRIO model is going to used by the organization of Ryanair.VRIO stands for Value, rare, imitable and organization. Organization can aim such elements like capableness and resources. To understand the significance of the different organizational public presentation, it is indispensable to contract down and clear up the nucleus competencies. (phdessay.com, 2019)

        Value explains that how much the resources of the organization can meet the need and requirement of the organization and expectation of the customer within given resources. By working together the subsidies of the government, its low price business model and airport charge reduction, ryanair offer the lowest price to all its customers to capture millions of customers from all around the world.

        Rareness of ryanair is that the ryanair is the only airline that has government subsidies and airport charge reduction with in short haul budget airline businesses. Its mot strong and direct competitor Easy Jet has no opportunity like this and having no resources like ryanair.  This make Ryanair airport change reduction and government subsidies more valuable and rarer. Because of its ability to attract customers and its secondary routes, government subsidies and airport change reduction are given to ryanair. It provides support for secondary airport development in short time and bring more customers and tourists for more consumption for government at local level. It is very hard to transfer the resources.

        Imitability means that it would be consider that comparison of ryanair with other airlines without the given resources are consider a big advantage of cost for organization and these resources are transfer with great difficulty or imitated to other.

        Organization explain the working of the Ryanair that it deliver lowest cost and price successfully by making good use of its various resources and capabilities. The deployment of resources become successful  because of effective operating strategy and marketing strategy , strong management team and effective CFO and build up its competitive advantages. In short the Ryanair utilize all of its resources and capabilities in most effective manner to maintain its leadership in cost and offer lowest prices to all its customers and stuck them that must be consider a competitive advantage for the organization. Here is a table that show the utilization of resources as per VRIO model.

        Only human resources are consider a competitive disadvantage for the ryanair because its bad relationship with pilots are very much highlighted so its no valuable and no rare and it is non organized and non effectively deployed and arrange in the markets.

Key competencies:

        The key competencies of the ryanair include strong management team, financial stability, organizational structure and good brand awareness. (ukessays.com, n.d.)

References of VRIO Analysis of the airline company “Ryan air”

phdessay.com, 2019. https://corporate.ryanair.com/about-us/history-of-ryanair/. [Online] 

Available at: https://phdessay.com/the-environmental-case-analysis-of-ryanair-commerce-essay/

ukessays.com, n.d. Ryanair Case Analysis Report Management Essay. [Online]
Available at: https://www.ukessays.com/essays/management/ryanair-case-analysis-report-management-essay.php
[Accessed 5 12 2016].