Following the financial losses in 1990, Ryanair still had the courage to be the first European carrier to restyle itself into a low-cost airline model, which was base on the successful Southwest Airlines in America. Since then, Ryanair turned out to be the Europe's most profitable airline, ironically once outperforming Southwest in profit margin percentages. (money.cnn.com, 2006) Clearly, Ryanair’s adopted business model played the key role in its achievements and there is more to than just copying another airline’s tactics. In this essay, we shall discuss Ryanair’s strategic approach from a perspective of the core competencies, together with the related competitive strategy that they have implemented by it.
Inhaltsverzeichnis (Table of Contents)
- Competencies for flying cheap
- The core competency concept
- Strategy development of Ryanair
- The Core competency in effective remodeling
- Competing as ‘no-frills’
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay analyzes Ryanair's strategic approach from the perspective of core competencies. The essay explores how Ryanair has successfully implemented a low-cost airline model, achieving profitability while maintaining low fares. The essay examines the key competencies that have contributed to Ryanair's success, and compares their strategy to that of other European low-cost airlines, such as EasyJet.
- The importance of core competencies in business success
- Ryanair's successful adoption of the low-cost model
- The role of strategic decision-making and innovation in achieving competitive advantage
- The impact of operational efficiency and cost reduction strategies on Ryanair's performance
- The challenges of implementing a low-cost model in the airline industry
Zusammenfassung der Kapitel (Chapter Summaries)
- Competencies for flying cheap: This section outlines the key operational factors that are essential for low-cost airlines to succeed in the European market, including route planning, cost-cutting, and reduced operational expenses.
- The core competency concept: This section examines the concept of core competencies, tracing its origins in advanced manufacturing and discussing different definitions and evaluation criteria.
- Strategy development of Ryanair: This section explores how Ryanair strategically adopted the Southwest Airlines model, emphasizing the importance of strategic fit, first-mover advantage, and the role of leadership in driving transformation.
- The Core competency in effective remodeling: This section focuses on Ryanair's unique no-frills specialization and the innovative strategies it has employed to achieve operational efficiency, such as outsourcing, route planning, and employee management.
Schlüsselwörter (Keywords)
This essay focuses on key concepts such as core competencies, low-cost airline model, strategic decision-making, operational efficiency, cost reduction, competitive advantage, and the challenges of implementing a low-cost model in the airline industry.
- Quote paper
- Uddika Kahawatte (Author), 2010, Ryanair’s strategy from a perspective of core competencies, Munich, GRIN Verlag, https://www.grin.com/document/160631
