How to Expand Flight Routes to European Destinations

BACKGROUND

Ryanair is a global airline that gives scheduled passenger airline services between the United Kingdom and Ireland. According to the case study, during the time period when there is a lowering down of restrictions with the airlines sector, Ryanair took advantage of this action performed by authorities and adopted a low-fare business model by offering low-cost as well as no-frills services in Ireland and London. This cost was adjusted by company in its operations in order to save cost from internal practices so that it can earn profit even after offering services at lower price (Klophaus and Fichert, 2019). But due to improper management of operations, it has experienced a drop in its profit share. 

1. Diagnose organisational business strategy and evaluate the competitive advantage of the company

It is essential for a firm to constantly analyse and review its business strategy with a view to ensuring that the strategic course of action adopted by the company is aligned with the long-term corporate objective (Caputo, 2019). In this regard, Ryanair is acknowledged to be affected by the declining quality of its services day by day. In this regard, the management of entity has made use of a strategic tool named Porter Generic model so as to review the existing corporate strategy for this low-cost airline. The aspects pertaining to this strategic tool are explained in context of Ryanair as follows:

Cost leadership: This is a strategy whereby an entity intends to keep the cost of operations low and provide their organisational offerings to a wide base of audience at least possible pricing.  In this regard, if Ryanair leverages this strategy, it would benefit the low cost business model adopted by company to appeal to public effectively.

Differentiation: Hereby, an organisation intends to offer organisational offerings with unique and creative features holding significant value for consumers. The execution of this strategy would provide assistance to management of Ryanair to instill a sense of loyalty and trust among customers, thereby developing price inelasticity on the part of customers (Milani, 2019).

Focus: It is of 2 types, namely, cosy and differentiation. Cost Focus concentrates upon creation of internal efficiency in an organisation, thereby assisting in withstanding external pressure. differentiation focus is keen on making an entity emphasise differentiating organisational offerings from rival firms with a view to attaining a strategic edge at market place ()Volkova, 2019)

On the basis of the above discussion, it has been analysed that Ryanair is currently applying a differentiation  strategy in order to attain a competitive edge in the market. However, the management is concerned as the quality of services sometimes get hampered as a result of implementation of this strategy within the premises of respective airline.

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2. Ability Of Executives Of Company To Identify Strengths And Weaknesses Of Competitors And Strategy Formulation

It is the duty of the management of the organisation to analyse the competitors present in the market along with their strengths and weaknesses. It is necessary to do as this will help in effective strategic formulation according to the the competitors power, which further aids in future  accomplishment of organisational objectives (Calzada and Fageda, 2019). The best effective model that helps in determination of the nature of industry is known as porter five forces. This model helps in ascertainment of overall competitive nature of industry in market on the basis of the analysis of the power of different parties associated with the business activities of that business, including suppliers, customers, new entrants, competitors, etc. The application of this tool with respect to ascertaining the power of competitors in the airline industry is understood from the below-mentioned description:

Power of competitors: Ryanair is an organisation that operates its business functions in airline industries. There are many big airline organisations having good reach and market share that operate their operation in same industry, such as British Airways and Virgin Atlantic. So, the power of competitors in this industry against Ryanair is high. The negative impact of the same is ascertained directly over its operations, which results into less profit and productivity.

Effective determination of the strengths and weaknesses of these organisations further aids in the formulation of effective strategy. Both the above mentioned organisation have strengths in the form of large number of employees, fleet, technology and customer base. The weaknesses which they face is that they are expensive in nature so they don't target medium level consumers.

The best strategy to execute after this evaluation from the side of Ryanair would be cost leadership. This will help to target the medium level consumers and improvement in figures of their earning (ADOM, 2019).

3.  Recommendations Of Potential Business Strategy

One of the best methods or models that can be used by the management of an organisation for further improvement in their future operations is known as Porter generic. This model has three different strategies. This is one of the effective models that helps the organisation to ascertain their internal capabilities and use the same to grab a competitive advantage in the market. The one which is most preferable for the organisation to adopt is about cost leadership. This will help the organisation to target over the weaknesses of the organisation where they provide services at high cost. This strategy helps the organisation to focus on medium-level customers and improve their market share.

RECOMMENDATION AND CONCLUSION

From the above-mentioned information, it has been concluded and recommended that the company needs to build on their customer perception and fly to more European destinations. They must work out contact with fuel and oil providers. They also train flight staff in other operations within the business so that they can switch duties and be more dynamic. The company must also improve customer helplines, which helps them in its growth and success at the marketplace. 

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