Competitive Strategy: Case Study: Ryanair's Competitive Strategy?

Table of Contents

Introduction 1

What have been Ryanair 's competitive strategy? 1

What factors have accounted for Ryanair 's success? 2

What do you think are Ryanair 's distinctive capabilities? 2

Do you think Ryanair 's competitive strategy is sustainable? 2

Conclusion 3

References 3

Introduction

Ryanair is an Irish airline, which follows the model of Southwest airlines, adopts the low-cost model in Europe, Ryanair started its business by flying short route from Waterford to London, and now it is one of the largest airlines in Europe. Under the leadership of Michael O’Leary, Ryanair’s profit grew from €48m in 1997 to €339m in 2012.

Ryanair proved that the low-cost model is an effective model to be used in Europe, it became the role model in Europe to use that model. However, it faced some hurdles in its way and still has some challenges to deal with, due to the high competition between airlines and trying to provide the lowest fares with the lowest costs possible. In the coming sections, we will see how Ryanair dealt with those challenges and how it adapted its strategy to continue growing in Europe.

What have been Ryanair 's competitive strategy?

Ryanair follows cost strategy, which depends one on two major directions. First it depends on low fares in which it managed to have a ticket for the half price of its nearest rival.

Second, it depends on low cost which was done in many ways, it uses online booking to bypass any overhead from travel agents. Ryanair also