Executive summary of the airline company “Ryan air”

In Europe, Ryan air operates the low cost passengers schedule airline. Ryan air starting in 1985 by following the southwest airline. This introduces the low cost concept in the Europe and make the airline market a low cost to attract and capture more and more customers.  This is going to be the first low most airline n Europe that transfer from 86 bases more than 2000 flights on daily basis, in 37 countries connect 215 destinations on the fleet of 430 Boeing 737 aircraft’s and also 240 Boeing 737 air crafts for future. This complete setup make the Ryan air most growth traffic to 200m customers by FY24 and lower fare airline this industry leading safety record from 33 years and having most skilled aviation professional team more than 14500 members that provide on time and excellent performance in the Europe.  In 2017, it maintains its record to deliver more than 1 billion customers. this airline establish itself to become most leading organization with low fare schedule through continuous improvement and expanded their services. It provides too much benefit to all its people, passengers and shareholders in the Europe. (corporate.ryanair.com, 2019)

Main body of the airline company “Ryan air”

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

For the development of best strategies, the ryan air 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, reputation; and physical. On the basis of given resources Ryan air 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.)

Section 2: SWOT analysis of the airline company “Ryan air”

In the strategic planning process, the cane of internal dn external environment is very important for the organization. All those environmental factors that determine internally the firm are consider as strengths and weaknesses and those factors that affect externally are opportunities and threats. So SWOT analysis provides detail help to making accurate match of resources and capabilities of the organization with in competitive environment. in strategy selection and formulation, it is instrumental.

(ukessays.com, n.d.)

SWOT/TWOS analysis of the ryanair is a helping tool that helps in evaluation to develop an impact on the airline industry at large scale and influence the environment of ryanair. All these factors are developing an atmosphere of competitive advantages and prepare the ryanair to handle with its competitors and rivals in the militant aviation industry. the ryanair provide on time service, low rates and safety of passengers but it also face poor customer relationship by providing them wrong guidance. In low cost airline there must be some weaknesses. but in the journey of ryanair, many opportunities obtain by airline that provide great support to sustainable growth and development. The achievable opportunities of ryanair are merger and acquisition with other airlines, code sharing and sector consolidation, significant hike in number of short distance travelers teamed and in macro environment the market growth  and with them some major threats for the ryanair are natural disaster, competition from local carriers, currency movement and fuel prices. (businessteacher.org.uk, 2019)

Pestle analysis: this analysis provides a framework that defines the impact of external factors on the business of ryanair company on macro environment. This external analysis shows that how these factors affect the growth rate of ryanair and its market strategy and business case. Factors are political, economic, technological, legal and environmental factors. Omn the airline industry, the great impact going to appear with the political system of countries and their inter relationships. For airline it is important to follow the political policies of country where they run their business. Ryanair is the low cost carrier but still it don’t want to merge with European union emission trading system because it consider that tax is consider a burden in term of revenue of the company. Profit margin also going down with the increase of fuel prices. But company manages its revenue shortage by increasing the volume of passengers. Aviation industry also influence by the legal factors because it effects their operations and ryanair also face many problems in this regard. The use of latest technologies like app and website for ticket booking and advance help the organization to generate more revenue. Ryanair is responsible at social level that try to maintain the environment and its lower cost carrier provide opportunity to travel in just like modern planes with full of latest technologies to minimize the pollution and cut down extra luxuries. (swotandpestle.com, n.d.)

Porter five force analysis

This framework provides the structure of the industry with depth. It provides the organization value and provides strong starting point for strategic analysis. This model can determine in all the points that support the organization and pinch points may discuss in details that effect the organization. In the market, company has to face lot of competition and pressure to maintain its profitable ratio. Here we are going to conduct five force analyses for the ryanair to determine the industry attractiveness in the market.

Many organizations want to change their management style and strategies so for this purpose different organizations use different type of models that help them to manage their new setup related to their business and provide better management opportunities. Ryanair has complete management plan and different strategies set by the organization to support all its operations and run them smoothly and successfully.  There are many successful models that provide better methods and support to change the overall management of the organization and make the operations of the organization more effective and provide better results at the end. Kotter’s 8 step change model use to determine how the organization in actual change all of its management and its leader approach towards the organization. Kotters model include 8 steps that overlap with each other. These steps explain the climate change, enabling and engaging the organization and sustaining and implementing change. Successful change happen with strong committeemen, sense of momentum, clears vision, clear and good communication, openness, strong leadership, executed plan and well engagement stakeholders’ engagement.

Increase urgency means that people of the organization start telling each other about adopting new change and they want to start work with a new change. Build the guiding team means that a group of powerful people is going to prepare and they start guiding people about the new and change work and even start working. Right vision get means that the team of guidance prepares the correct strategy and new vision for implement the change. Buy in communication means that people are going to be ready to start purchasing with new change and their behavior also going to be change more. Action empowers means that many people are able to understand the change and they start act like new vision. Short term wins creation means that people try to complete the vision approach with a momentum and change can be resist by few people. Don’t let up means that people after change going to perform their responsibilities until they achieve their vision related to their work. Making of stick change means that turnover of change leaders with new and winning behavior is going to be continued instead of traditions.

According to this model, effective leader determine the problem, find the solution of that problem and engaging the people that going to change their behaviors according to requirements. They also focus on people driven approach that guide people to determine the reason behind the change. People are going to change when their feelings completely change with the power of truth. So emotions belong to the change of heart it means see, feel and change is natural phenomena. See means eye catching and compelling situations that support people  to know about the problems and determine its solutions. Feel means that different ideas implement strong emotions that give motivation to act differently in situations. Change means new behavior and feeling going to be deployed and people do their work with more efficiently to develop the new vision in reality. Change is different but must be happen to maintain the momentum of work. ((Eds.), 2019)

Section 4: the airline company “Ryan air”

First of all, after the detail discussion of the ryanair, it can be determine that the strategies of ryanair must be develop to determine l lathe major issues of the organization and also maintain its low cost approach for all the customers because its specialty attract the customers and make it profitable organization. Through its core competencies, ryanair strategies must be improvement making and waste minimization and better utilization of resources. The core competencies define its ability to finish all those operations that are not supportive and value added. By unnecessary processes eradicated prices can be minimize. Careful planning must be required to increase the efficiency so ryanair adopt improvement making strategy that supports its corporate culture.  The real-time initiatives must be taken by the employees and then management as a whole implement the change. The deficiencies of the organization cannot be detected if the employees of the organization not properly connected with customers. Because only employees may not give accurate suggestions related to new change so the ryanair provide opportunities to all its employees to take better initiatives for the betterment of the organization. The next core competence related to maximize the ability of ryanair is to increase the number of routes offer by maximizing the number of customers travel. This core competence show that ryanair use its aircrafts more than before and multiple use its routes to make its profitability higher than before by utilizing its resources more and more. And employees must know that how to properly manage all the resources to get better results and enhance the earnings ratio and this all would be happen with the contribution of employees on different segments of business. (ukessays.com, n.d.)

SFA evaluation of the airline company “Ryan air”

When business have multiple strategies then it is difficult to select the best one for the business and face problems while implementing and assessing the usefulness and effectiveness of strategy. An effective approach and options must be selected to consider the suitability, feasibility and acceptability of every option. Any strategy must be fulfilling at these three criteria to become successful and ryanair also determine this model to implement any sort of strategy. Suitability means that company determine is the strategy is better to use to meet the requirements of the company or not. In different criteria the suitability consider very important like capability, expectations and environmental suitability. These types can be divided into further categories according to the requirement of the organization. For determine the suitability consider the strategy use the strength of company effectively or strategy remove the difficulties that are identified. Acceptability belongs to the stakeholder reaction, risk and measuring return after the implementation of the strategy. Based on the benefits, returns must be measured and financial and non financial effects must be determined. Feasibility of this model decides finally about the implementation of the strategy; determine the resources, abilities and capabilities of the business to implement the strategies. Financial feasibility is also very important to determine the future needs of the business by observing the cash flow, many other financial test with break even analysis. It also determines how much material, management power, equipment and man power is required to implement the strategy. (oxfordcollegeofmarketing.com, 2019)

Summary/conclusion of the airline company “Ryan air”

Ryanair is a very well reputed and successful organization that provide excellent services at most lowest price rate. They are well organized and run successfully but still they have some problems and many issues arise in their strategies. The resources and competencies must be determine at every step to consider the effectiveness and strength of its strategies and make more effective strategy that meet the requirements of the organization and provide more profitable results in future and also engage all its employees with customers and define a comfort zone for all the people.

References of the airline company “Ryan air”

(Eds.), V. W. a. M. W., 2019. Successful Change Management — Kotter’s 8-Step Change Model. [Online]
Available at: https://www.leadershipthoughts.com/kotters-8-step-change-model/

businessteacher.org.uk, 2019. Ryanair SWOT Analysis. [Online]
Available at: https://businessteacher.org.uk/swot/ryanair.php

corporate.ryanair.com, 2019. History of Ryanair. [Online]
Available at: https://corporate.ryanair.com/about-us/history-of-ryanair/

oxfordcollegeofmarketing.com, 2019. Evaluating Strategic Options Using SAF Strategy Model. [Online]
Available at: https://blog.oxfordcollegeofmarketing.com/2018/02/25/evaluating-strategic-options-using-saf-strategy-model/

phdessay.com, 2019. https://corporate.ryanair.com/about-us/history-of-ryanair/. [Online]
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ukessays.com, n.d. Ryanair’s Strategic Management Practices. [Online]
Available at: https://www.ukessays.com/essays/management/ryanair-s-strategic-management-practices-through-the-theory-of-core-competencies-management-essay.php
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