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
Brand name has made the customers stick to Ryanair as it fulfills all their needs and wants. Even though this company has suffered severe financial crisis in 1990, after restructuring in which they adopted the Southwest Airlines business model, Ryanair became the pioneer of the low-fares model in Europe. On the other hand, another strength that
There is evidence of the company implementing certain policies to reduce pollution. Despite their environmentally friendly strategy, the company has been diminished by bad publicity. Thus Ryanair should adhere to good business practice for sustainability and high performance. Legal: Legal factors can affect the company 's image and reputation. In August 2003, Ryanair ceased operations at Strasbourg after losing a court case brought by Air France.
Ryanair Ltd. is an Irish low cost airline with its primary operational bases at Dublin and London Stansted. Ryanair was founded in 1984 as "Danren Enterprises” by Christopher Ryan, Liam Lonergan and Irish businessman Tony Ryan. The airline was shortly thereafter renamed "Ryanair” and began operations in 1985. (Wikipedia, 2016) In 2013, Ryanair was both the largest European airline by scheduled passengers carried, and the busiest international airline by passenger numbers. (Ryanair.com, 2016) Ryanair is Europe’s favourite airline, carrying over 106m p.a.
Ryanair is known as Europe`s largest low cost-carrier and second largest airline, but some changes in legislation had threaten by affect Ryanair difficult to maintain the profit, raise cost of operation and provide lower cost to the customers. There is lot of new government regulation that need to be complying by Ryanair in this year. First regulation is related to Irish Aviation Authority (IAA) which Ryanair aircraft must have a Certificate of Airworthiness that had been issued by the IAA and this certificate
Financial analysis (internal analysis): Financial analysis shows increase in profit margins. Analysis showed that Ryanair airlines were still in profit even after cancelling the flights but their market share prices decreased. The cost of maintenance, marketing, distribution and rental aircrafts increased but there is a decline in operating margin which led to higher profit margins. Ryanair may face loss in profit in coming days if they refund the 400000 affected customers. External analysis: It is done to check the environment in which the company operates.
Ryanair's short-haul network is the largest of any airline in Europe. It is the top airline by passenger numbers, with its closest competitor being Luftansa. Innovation The only other airline that have tried to compete with Ryanair's short-haul flights is easyJet. Ryanair copied the business model of Southwest Airlines, after immitating Southwest's model, it was Ryanair's innovation that was the key to success. Online check-in, automated bag drop, and hand luggage-only travel are the norn when flying with Ryanair.
Ryanair is a famous low-cost airline company which was established in 1985 by Tony Ryan family. It’s headquartered in Ireland and provides services across Europe. Ryanair was built on Southwest Airlines model, which is highly successful in US, and now Ryanair is one of the most successful and profitable low-cost airlines in the world. In this work, I would like to analyse Ryanair’s external and internal strengths and imperfections. My first examination will be on external analysis, which is also called environmental analysis.
Low technical marketing and internet sales have reduced the number of staff in handling the customers which helped in cost reduction. Thus, the Ryanair may offer the low cost promotions in order to attract customer, and free publicity may increase the awareness among the public which enhance the sales. Online sales boost the speed to acquire customers and reduce the time in maximizing the number of seat offer for each flight. In other hands, the effectiveness of management in handling the marketing and sales division by influencing consumers help Ryanair to ensure their sales is always in consistent trends. While, under services perspective of Ryanair performance contracts of employees have ensured that all perform at the best level and best productivity.
This is why it’s essential to keep customers satisfied and this can be done by studying their expectations and perceptions, assessing the organisations service quality and applying improvement measures where necessary. The SERVQUAL model The SERVQUAL model identifies reasons for any gaps between customer expectations and perceptions. The expectations and perceptions are accessed from 22 questions which serve as a SERVQUAL scale, furthermore five dimensions of service quality namely: reliability, assurance, tangibles, empathy and responsiveness, are used to analyse service quality. Perceived service quality results from comparisons from customer perceptions and expectations of service delivered by the service providers (Zeithamal et al., 1990). If a gap score is positive it indicates that expectations are exceeded.