ryanair core competencies

By making use of the theory of core competencies as developed by Prahalad and Hamel (1990) this essay argued for the company’s cost-leadership strategy that is sustained through its efforts to minimise waste and improve efficiency. London: DatamonitorDobruszkes, F. (2009) ‘New Europe, new low-cost air services’, Journal of Transport Geography, Vol.17, pp.423-432Done, K. (2004) ‘Ryanair talks of disaster, but the low-cost revolution flies on’, Financial Times, 7/8 February 2004.Gillen, D. and Lall, A. Ryanair prefers to fly to secondary cities and pursue an outsourcing strategy to undertake its core production services, such as catering and aircraft maintenance (Mayer 2008). By gaining entry to the new network routes, other airline companies (e.g. Such costs, in turn, can result in reducing the number of destinations offered in the first place. They are unique to the company, more complex, difficult to copy, relate to fulfilling customer needs , add greater value, based on distinctive relationships with customers, distributors and suppliers and based on superior organisational skills and knowledge. The difference in volume is evidence of the consumers’ growth and changing travel needs.A key trend in the LCC market has not only been the consumers’ attention on cost but also opportunity for travelling to new destinations within Europe (Malighetti, et. 3, pp. London: DatamonitorDobruszkes, F. (2009) ‘New Europe, new low-cost air services’, Journal of Transport Geography, Vol.17, pp.423-432Done, K. (2004) ‘Ryanair talks of disaster, but the low-cost revolution flies on’, Financial Times, 7/8 February 2004.Gillen, D. and Lall, A. al. (2008, p.846).The aim of this essay has been to explore Ryannair’s strategic management practices. (Coyne, Hall, & Clifford, 1997)How ever the former discussion of core competencies may not directly apply to the Ryanair situation, since it does not focus on competencies at a SBU level. This can be done by placing greater importance on the customers’ perceptions of satisfaction rather than just promoting the selling of low cost tickets.Figure 3 Aspects of Strategy formulation and evolutionAccording to Johnson et al (2008) Chaharbaghi and Willis (1998) the study of strategic management is concerned with understanding how an organisation can realise its corporate goals through the manipulation of its tangible and intangible resources. Ryanair, Southwest Airlines and post-merger US Airways and America West’, Strategic Direction, Vol.23, No.1, npp.12-15Wood, E. G. (2004) ‘Who pays for wheelchairs?’, Institute of Economic Affairs, pp. The focus was to operate on an average number of passengers per flight, with more seats per aircraft archiving a higher load factor. Englewood Cliffs NJ: Prentice Hall.Barrett, D. S. (2004) ‘The sustainability of the Ryanair model’, International Journal of Transport Management Vol.2, pp. aircraft, contract on destinations with airports), but also intangible resources (e.g. (2001) ‘Developing a strategic direction for airports to enable the provision of services to both network and low-fare carriers’, Facilities, Vol.19, No.1/2, pp.52-60Porter, M. E. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors. Lack of regulation meant fewer restrictions as to how the airlines needed to design and perform their operations (e.g. Such strategy focuses on achieving economies of scale by maximising its profit margins through the maximised over volume of sales. According to Huttinger (2006) “many countries perceived the airlines as a state institution and their reason for existence as a fulfilment of public needs (p.229). According to Gillen and Lall (2004) such growth is attributed to a) the number of destinations already served by the airliners, b) the reputation on cost and c) the development of a strategy that allows them to utilise resources whilst minimising waste.

4. pp.100-102.Groom, B. Vol. Gillen and Lall (2004) argue that “a faster turn improves utilization of all factors of production such as aircraft, gates, ground equipment and labour” (p.44). (Johnson, Scholes, & Whittington, 2008)The origins of core competencies were solely based on how advanced end product technology manufactures exploited their unique core skills and resources among the organization, and across their market. (2007) ‘A dynamic view on strategic resources and capabilities applied to an example from the manufacturing strategy literature’, Journal of Manufacturing Technology Management, Vol. London: Prentice HallLawton, C. T. (1999) ‘The Limits of Price Leadership: Needs-based Positioning Strategy and the Long-term Competitiveness of Europe’s Low Fare Airlines’, Long Range Planning, Vol. By achieving a high seat-filling-capacity Ryanair can sustain its standard maintenance costs whilst improving on revenues. These are a) cost leadership, b) differentiation strategy, and c) focus strategy. Based on experience, knowledge, and know-how, they are built up over time and cannot be easily imitated. consumers, product, health-related products) with the result of creating new barriers of entry for other competitors to enter (Porter, 1987). There are two areas in which this occurs. All of Wal-Mart’s success has been received by the provide much value and benefits to Nike’s consumers, are not easy for competitions to imitate, and can be leveraged widely to most of their products and markets.

Prices can be reduced when unnecessary processes are eradicated and/or improved.