Case Study Of Ryanair

This paper analyses a key player in the airline industry which is ruling the skies within the European airspace since past few years and it was declared as the airline which had serviced more travellers than any other airline in the world in 2016 (O’Halloran, 2016). The number of travellers here being stellar 101 million which is 60 percent more than the nearest competitor. The name of the airline is Ryanair and it was established in 1984 with the intension to compete with the Irish state-owned airline Aer Lingus. In its 23 years of operations, it has established itself as the de facto standard as far as low cost airlines are concerned. Much of the company’s success is attributed to Michael O'Leary, the CEO of the company who has occupied the

Ryanair shares key relationships with Boeing, their airline provider and the food/beverage suppliers across the globe which ensures that the services are provided on time in Ryanair’s bid to become the most punctual airline on planet (McDonald, 2013). When the partner relationships are considered, the value of goods or services provided by the supplier is the key differentiating factor. Further, the value cannot be created by a company alone but is often an amalgamation of suppliers jointly creating value for the customers (Wikström, 1996). Thus Boeing along with the suppliers of the spare parts for the aircrafts provide value to Ryanair by proving goods to Ryanair at favourable terms and competitive prices so that it can continue to provide low cost and yet safe travel to its customers. Boeing uses relationship marketing with Ryanair where the focus is more on customer retention and satisfaction. According to Morgan (1994), Relationship marketing refers to “all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges”. As Lindgreen et al. (2012), defined the key differences between the transactional and relational marketing, in case of Ryanair, there is a duopoly amongst aircraft providers namely, Boeing and Airbus, so Boeing and Ryanair invested in long term relationship with each other spanning already more than 20 years now. Ryanair is one the few airlines which have complete fleet provided by Boeing (CNBC, 2013). Ryanair intends to exploit the technical prowess of Boeing to create fuel efficient aircrafts with more seats within the aircraft space thus transferring the cost benefits to the customers. Ryanair demands that their fleet of aircrafts are should be similar in design to reduce the maintenance costs and Boeing caters to their demands with timely delivery of the