The objective of this study is to look at the current business strategy adopted by Ryan Air -- Europe's largest low-cost carrier and how it should further move towards its growth in future. In the following sections, we will take a brief look at the history and background of the airlines before moving on to its current and future business strategy.
An Irish airline - it has its headquarters in Dublin and its biggest operational base is London Stansted Airport in UK. Ryanair has profited immensely due to the deregulation of the air industry in Europe in 1997and has undergone rapid growth to become on of the leading names in the industry. But its rapid expansion has been characterized by the numerous controversies and complaints about its functioning. In October 2006, Ryanair was voted the world's most disliked airline in a survey by the TripAdvisor website, and in November 2006, it was revealed as the subject of more complaints than any other airline in the EU. (Irish Examiner, 2006-11-28)
Business strategy or the long-term business plan is typically characterized by major resource issues or their allocations in an organization. there are two main categories of strategies that are usually followed by the companies ---- the Generic (general) strategies, and Competitive strategies. Some of the generic strategies are:
a. Lowering the prices. This is useful if the company is the market leader and can benefit from the advantages of producing large volumes of output such that the lower costs can be covered by more output. And the competitors are unable to match the lowered prices.
b. Differentiation - that is position the company as providing something different from the other rivals. For e.g. ...