Ryanair Competitive Advantage

In order to sustain among other competitors, Ryanair Holding should evaluate their strategy which is low cost business level strategy in the long run. This strategy alone is not a basis for competitive advantages, nor are advantages sustainable over time. This is because it can only be regard in helps Ryanair to increase its revenues or to lower costs. The firms also derive a temporary advantage because competitors quickly imitate or substitute for it as things that an organization own. Since economy is further growing, Ryanair faces a lot of challenges in maintaining their revenue growth while keeping ticket prices low. Thus, it is essential for Ryanair to narrow down and clarify their core competencies of innovative cost cutting and alternative revenue generation for better organizational performances. In related to the case, strategy of low cost business level that Ryanair Holding offer must have four characteristics to sustain in this airline business. Ryanair Holding’s strategy should be valuable, rare, inimitable, and non-substitute in order to direct to a sustainable competitive advantage.

Firstly, Ryanair Holding should evaluate whether the low-cost business level strategy is being valuable. Ryanair need to neutralize threats and exploit opportunities in the airline’s environment to improve its efficiency or effectiveness performance. In this case, Ryanair Holding’s strategy is valuable even in the long run because it allows Ryanair to seek the offer of low fares in