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Ryanair Strategic Capability Analysis

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  Ryanair's Strategic Capability Analysis

• Oct 23, 2010

• Aniqa Sheikh


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Ryanair - Arpingstone

This article examines Ryanair's strategic business objectives and analyses the strategic capabilities of Europe's low-cost airline.

Ryanair is Europe's leading low cost airline. It was founded in 1985, by the Ryan family as a scheduled passenger airline between Ireland and UK. It has established itself as an international airline in the global aviation industry. Ryanair has a very robust business strategy which is to strive towards becoming Europe’s number one low cost leader in the airline line industry.

The objectives of this strategy are to firmly establish itself as Europe's leading low-fares scheduled passenger airline. The company does this by offering low fares which have been designed to stimulate demand, mainly from fare conscious leisure and business travelers. Ryanair’s selling policy is to sell seats on a one-way basis, and sets fares on the basis of the demand for specific flights.

The company prefers to use secondary airports, as they are usually less congested than major airports and can be expected to offer higher rates of on-time departures. By choosing secondary airports, Ryanair can achieve faster turnaround times and fewer terminal delays and gain competitive handling costs.

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Ryanair's Strategic Objectives

Ryanair key future objectives are to have the largest amount of routes amongst all European airlines, to have the lowest fares amongst all European airlines, to provide the best service to customers amongst all European airlines and to to achieve unprecedented levels of growth and development.

Ryanair Strategic Capability Analysis

The strategic capability analysis helps in identifying the core and threshold competencies and resources of a company. Ryanair’s core competencies are that it is Europe’s leading low cost airline as it provides low fares to all its customers. Ryanair does this to stimulate demand. It targets fare conscious leisure or business travelers who may not travel at all or use other methods of transport such as car, coach or trains.

By doing this it achieves strong revenue growth. It can further build on this competency by conducting market research to understand his customer needs. It can then develop deals, products and services that will attract and retain customers.

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Ryanair's Threshold Competencies

Ryanair’s threshold competencies are its customer services and agreements with airports. It can further develop its customer services by developing and delivering standardised way of delivering customer service throughout the organisation. This will enable everyone to deal with customers in the Ryanair’s way. It can also negotiate cost effective agreements with airports to reduce costs and avail tax incentives from them.

Ryanair's Unique Resources

Ryanair’s unique resources are its human resources that are its employees. It can build on this resource by training and developing its existing staff in their jobs to increase their skills and for achieving excellence in service delivery. It also an impressive number of fleet which it can further increase by purchasing new carriers for business expansion.

Ryanair's Threshold Resources

Ryanair’s threshold resources are its competent leadership. This can further be improved by encouraging new and young talent and by training and developing key employees to become tomorrows’ leaders. Ryanair has knowledgeable pilots. These pilots need to keep themselves informed of the changes in international flying regulations to efficiently


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