Strategic management: Ryanair

Résumé du document

Ryan air was born in 1985. To build its strategy, obtain competitive advantages and to become a leader on this market, the company had to study different elements that the organization had to face. These are shown by the graph "layers of the business environment".

With the PESTEL method, we can determine the general environment of which the strategy business units are composed. Strategic business unit: This is a part of the organization for which there is a distinct external market for goods or service, which is different from any other strategic business unit. (Johnson and Scholes, 2005).

The company has many constraints to respect in carrying out its strategy. These factors can generate exceptional costs, changed dynamics, and notorious effect on the market: atomization, customer's service, passenger volume. Then, she must make good forecasts to adapt their budget and she must find new strategies to reinforce their position.

To face this external environment, Ryan air must understand the Key drivers of change: competition/rivalry in UK, and the growth of the market and the consumer demand. From that, and with the analysis of the five forces framework model, the company can identify the source of competition, and create competitive advantages.

Extraits

[...] What are Ryan Air's dynamic capabilities? Summarize the salient strengths and weaknesses of Ryan Air: To create a good strategy, the company has to study the capacities to obtain competitive advantages, to remain operational and to thrive. Ryan Air owns resources and competences. Two categories of resources can be analyzed: The tangible resources Physical assets of an organization such as plant, labor and finance (Johnson and Scoles 2005): These resources can be grouped as follows: Financial resources: “Ryan air has delivered substantial profits and industry leadings margin in excess of (Chairman Ryan air report) Revenue and profit tend The equity capital was thus with the Ryan family, Mr. [...]

[...] From your mission and strategic objectives, and based upon your internal and external analysis develop and fully evaluate, using appropriate analytical and evaluative techniques, three alternative possible strategic directions for Ryan Air. Which of the three options would you recommend that the Board at Ryan Air pursue? Ryan air could choose between three types of strategies: Business or competitive strategies To lower the prices to win the price war, to reduce the costs, and to specialize on only one segment is obligatory. [...]

[...] Leary in particular, who created an extraordinary design of the market and ensured the growth of Ryan Air. He had the ability to manage linkages and activities within flexible and innovative approaches. The team increased and diversified itself according to the competence of each actor. It innovated to adapt its strategy after the arrival of competitors. The company knows how to manage its budget to avoid too many losses. Ryan air has an enormous capacity, and a great dynamics which aim to reduce the costs, like cooling in the flights and to invest again in its fleet or new roads to satisfy the customer. [...]

[...] The management capacity and the competencies avoid mistakes, and give viability to the new products. It is also necessary to pay attention to the other competitors so that they are not overtaken. The principal is to find a synergy between the corporate parent and the business unit and to determine the various spots from each one. Directions and methods of development It consists of protecting and to build its positioning within its current products, studying what it does not necessary anymore, and then adding new ones. [...]

[...] This strategy is not the best for Ryan air. Ryanair has all the necessary competencies and resources to adapt to the first strategy: a rigorous management, a good perception of the external and internal factors, a good vision and a certain speed of innovation. Ryanair must pay attention so that the profits do not decrease, to be able to continue to invest and satisfy the customers. Critically assess, by relating to the appropriate leadership theory, the leadership style of Ryan Air's Chief executive. [...]