What is the strategy of Ryanair?
Ryanair dominates through its cost leadership strategy, meaning it wins the market share by targeting price-sensitive customers by providing the lowest price in the market without much focus on customer relations and services. It is a money-dominated strategy, making the most money by spending the least.
What is Ryanair’s strategy and objective?
“Ryanair’s objective is to firmly establish itself as Europe’s leading low-fare scheduled passenger airline through continued improvements and expanded offerings of its low-fare service.” These strategies focus on the core competency of Ryanair to ensure that it offers exceptional value in the saturated airline market.
Who is the target audience for Ryanair?
Ryanair’s main target customers are people within Europe who mostly travel for private purpose, for example, who visit friends and relatives go on city-sightseeing trips. They are price-sensitive with a lower income level or other preferences and less willing to pay for the add-on services onboard.
What is the purpose of Ryanair?
Ryanair’s objective is to firmly establish itself as Europe’s leading scheduled passenger airline, through continued improvements and expanded offerings of its low-fares service.
What pricing strategy does Ryanair use?
Ryanair switched a product-based to a value-based pricing approach to serve its customers based on their wants and needs. Besides, Ryanair’s succeed in boosting profits by unbundling the air travel elements of passengers and charging each element (such as seat selection, luggage preferences, etc.) separately.
What are the main challenges facing Ryanair currently?
The European airline sector is experiencing the consequences of a challenging environment. Because of overcapacity, fares are getting lower. And volatile oil prices mixed with high debt levels are likely to trigger extra bankruptcies over the short term.
What are the main actions used by Ryanair in leadership cost strategy?
Ryanair’s cost-leadership strategy is based on the intent to outperform competitors by doing everything it can to establish a cost structure that allows it to provide its air travel service at a lower unit cost than they can.
What is Ryanair’s pricing strategy?
How does Ryanair advertise?
They do not employ an advertising agency; all the advertising is done in- house. They use simple adverts that tell passengers that Ryanair has low fares. Ryanair employs controversy to promote its business.
What services Ryanair provide?
The company has deals with Hertz car rental, and a number of hotel businesses. So Ryanair takes a commission on ‘up selling’ i.e. ancillary revenue. Other examples include phone cards and bus tickets. About 16% of profit is made this way.
What makes Ryanair unique?
1. Low costs. Ryanair has the lowest unit costs of any European airline and one of the lowest of any airline in the world. Whether measured by cost per available seat kilometre (CASK), cost per seat, or cost per passenger, Ryanair’s production of capacity and traffic costs it less than that of any of its competitors.
Does Michael O’Leary own Ryanair?
Michael Kevin O’Leary (born 20 March 1961) is an Irish businessman who is the Group CEO of Ryanair. With a net worth of around €848.6 million as of April 2018, he is one of Ireland’s wealthiest businessmen.
What is Ryanair’s strategy when purchasing new aircraft?
Ryanair’s strategy when purchasing aircraft is to buy new, uniform aircraft. This is beneficial for a number of reasons all of which directly help cost saving measures. Firstly, by being able to order same aircraft in bulk they are able to negotiate a better price per aircraft.
What is Ryanair’s goal?
RyanAir’s goal is to offer the lowest ticket price and establish itself as a leader in the European low cost airline market by focussing on cost cutting and achieving operational efficiency.Ryanair’s corporate policies are all based on cost cutting.
What challenges does Ryanair face in the future?
Ryanair will undoubtedly face challenges in the future, however its strategy is sustainable because of its unique resources of ‘Ryanair Brand’, ‘Cost Conscious Management ‘ and its core competency of ‘Innovative cost cutting strategy’.
How does Ryanair manage to keep costs low?
The Ryanair strategy attempts to keep costs low by gaining discounts and concessions from plane suppliers (Boeing) and Airports. They operate only one type of aircraft to keep maintenance simple and cost effective with bulk buying of a single set of spares.