Ryanair Business Level Strategy

The Ryanair Holdings are using low cost business level strategy in order to sustain in the market. The strategy used by this airlines company practically due to challenges that been faced by Ryanair Holdings that are from internal and also comes from external factors. The low cost business level strategy that been used by this particular airlines company could be consider as not a sustainable competitive advantage. This is due to several incapability of the company to maintain the advantage throughout the business operations based on four (4) criteria which are the valuable of services, rare resources, and inimitable services as well as unavailable of substitutes. As the valuable services, it is where it enables the firm to formulate and

In order to ensure the services or product are inimitable, the services or product must have its own uniqueness, the path dependency created the value throughout the process, it has the causal ambiguity which the resources are not being able to re-created and last but not least where it has a social complexity which the characteristics of a firm’s resources that are costly to imitate because the social engineering needed is beyond the capability of competitors. Ryanair Holdings’ practically engaged the transactions with the customer using the internet as the passengers must book and pay for fares on the Ryanair website or call center. This technology system practically would be easier for the competitors to imitate. This is because the technological systems have no boundaries and everyone or every company would be able to use the technology. By this technological advancement been applying in Ryanair Holdings, it simply indicates this airlines company are not having the competitive advantage through this method of booking, payment, check-in and boarding. This is because other airlines company is offering lower total cost of trip by using the same technology system. This is also some sort of indications where Ryanair Holdings’ system are having no uniqueness and easily to re-create. Therefore, the services of using the internet that been provided by Ryanair

An airline company must make sure that the services provided don’t have any substitutes in the market. This is because the passenger will tend to go for the airlines company that offer lower price and high quality provided by the airlines services. In the market, there are a lot of competitors that provide a lower total cost of a trip that the passengers can grab compared to what Ryanair Holdings had offer. This is because, even though this airlines company offer low cost, eventually the price would still be expensive due to the additional cost for the services that are supposedly included in the ticket price such as online travel cot and golf clubs. There are also cost that are irrelevant to be charged to the passenger such as delay or cancellation fees that make the substitution are readily in the market because other airlines company are not charging their passenger with this kind of costs. All in all, Ryanair Holdings is not a sustainable competitive advantage in the long run since the company is not fully satisfied the above four criteria. Thus, the company should look forward in reducing any unnecessary cost that could escalate the cost of the trip in order to ensure the loyalty of the passenger and being able to sustain in the long run with a stable competitive