Ryanair, a model of competitive advantage?

Résumé du document

Globalization is the "name for the process of increasing the connectivity and interdependence of the world's markets and businesses" (investorwords.com). The internationalization of trade gives to worldwide companies opportunities to grow, increase their market share and become more profitable over the long term. But it also generates other consequences such as the growth of international competitiveness. To "stay in the part", companies must develop strategies and actions giving them a competitive advantage and enabling them to survive and develop. According to Jones and George, there are four ways to create competitive advantage, also called critical success factors or core competencies: a superior efficiency; quality; speed, flexibility and innovation; and responsiveness to customers. How can organizations create, implement and manage a strategy like this?

Extraits

[...] How an organization creates a competitive advantage? Competitive advantage is ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors.” (Jones, Gareth The four ways to create a competitive advantage To be competitive, companies have to increase different factors. First, their efficiency by reducing the quantity of resources they used to produce goods or services at lower costs. Second their quality by “improve the skills and abilities of their workforce” in the goal to create products or services that have attributes and have best reputation than their competitors. [...]

[...] The Management strategy Policy management is innovative and young. The company relies heavily on its workforce to develop its business and increase growth. Indeed, employees perform different functions in the goal to reduce employees' costs. Ryanair uses an out of ordinary strategy: A selective recruitment: human qualities, motivations and character of candidates are judged by managers Methods of participatory management justified by the slogan “Sweat your assets” A policy of high interest in the results of the company A strong corporate culture Social policy maverick (intolerance of unions) The group's strategy aims to achieve the following objectives: Affirm and develop its cost leadership position due to the effects of experience and the able to achieve economies of scale Maintaining its growing reputation and ensure a stronger image Strengthen the power of communication based on existing brand equity. [...]

[...] This organisation is a model in the creation and management of competitive advantages. The strategy respects and develops the four main ways to create a competitive advantage that is why the company has become the leader in low cost Airways industries. Ryanair regularly denounces or bring lawsuits against competitors for legal or advertising reasons. Has Ryanair reached it's critical size and is it able to resist the concentration of the air sector and the financial and economic crisis of nowadays? [...]

[...] The results Basically, the company ensures more than 550 flights in Europe. It now employs 4800 employees. With regards to turnover, it is divided into the following two activities: Flights represent 88% of the turnover. Indeed, in 2008, Ryanair had more than 50 millions customers. Services offered by the company realised 12% of the turnover, essentially with car rental, hotel reservation and sales during flights. The turnover can also be divided geographically as 55% for UK and 45% for the rest of Europe. [...]

[...] R July 2008 ; Transport aérien: 24 faillites en 6 mois à cause du pétrole [Online]; available at http://www.easybourse.com Books Jones, Gareth R. (2008), Contemporary management - 5th ed., [international ed.]. Creaton, Siobhán (2004), Ryanair :how a small Irish airline conquered Europe Appendices The M. [...]