• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Internal Analysis of "Ryanair-The "Southwest"of European Airlines" case

Extracts from this document...


Stanislav Boyadjiev BUS-450 Prof. Voyer 05/23/2009 Assignment I Internal Analysis of "Ryanair- The "Southwest" of European Airlines" case Introduction Ryanair was founded in July 1985 by the three brothers, Catlan, Declan, and Shane Ryan, with the financial assistant of their father Tony Ryan. As a beginner commercial carrier, its operations began with 25 staff and a single 15-seat turbo-prop commuter plane between Waterford in the southeast of Ireland and Gatwick Airport, the second busiest airport in London after Heathrow. Later on, regulatory authorities permitted the Ryanair Airlines to have at least four flying flights a day on Dublin-London route, with more seating capacity. Nowadays, Ryanair, with its rapid growth, occupies the most sought position in its own field, being "Britain's favorite airline" and the oldest-low cost air carrier in Europe. The goal of my internal analysis on Ryanair is to focus on resources and capabilities as internal sources of uniqueness that allow firms to beat the competition. This analysis is often called the resource-based view of the firm. By theory, a firm gains an advantage by obtaining valuable and rare resources and developing the capability to utilize these resources to drive customers toward their products and services at the expense of competitors. As a result, firms with superior resources and capabilities enjoy competitive advantage over other firms. ...read more.


Resource Analysis Resources and capabilities are the fundamental building blocks of a firm's strategy. The resource-based view presents a perspective of competition that portrays the value of a resource or capability as derived from the dynamic interplay of market forces. While the market and environment establish external constraints and pressures, a firm's response through resource allocation and capability development become a source of competitive advantage. The resource-based perspective views a firm as an organization that has a bundle of protective resources and capabilities. Resources are tangible and intangible assets a firm uses to choose and implement its strategies. Capabilities are the skills a firm uses to bring its resources to bear. Ryanair's tangible resources include all Boeing 737 airplanes the company uses, as well as the company's headquarter building in Dublin and all other buildings the company uses. Part of the tangible resources also are all of the supplies, food, drinks and duty-paid products company holds in inventory, as well as fuel. Intangible resources contain bigger part of the business. They include all the intellectual capital, like expertise and accumulated knowledge, experience, skills, abilities and talents that every employee in Rayanair possesses. Here I could include also the company's brand recognition, customer loyalty, investors' confidence and the good reputation. ...read more.


Their use of secondary airports means that they are able to negotiate deals with the airports, in contrast to larger airlines unwilling to split their operations between two or more airports. Ryanair does not pay dividends to its shareholders. All profit is reinvested back into the business, which means a higher profit margin. Ryanair is unable to expand its home market industry, because of airport taxes. Passengers having their own luggage carried at their own risk could mean a loss of reputation if any major scandal is to occur in terms of loss of luggage. Increasing its fleet could mean that it might incur more losses. Reference: Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2008), Crafting & executing strategy; The quest for competitive advantage. Boston: McGraw- Hill Irwin. Ryanair Holding PLC, (2007). The World's Favorite Airline. Retrieved May 20, 2009, from Ryanair Web Site: http://www.ryanair.com/site/about/invest/docs/2007/070920annualreport.pdf Ryanair Holding PLC, (2007). Strategy. Retrieved May 20, 2009, from Ryanair Web Site: http://www.ryanair.com/site/about/invest/docs/Strategy.pdf Google (2009). Ryanair Holdings plc (Public, ISE: RYA). Retrieved May 20, 2009, from Google Finance Web site: http://www.finance.google.com/finance?q=ISE:RYA Lavarack, M & P. M. Brown. (1992) Benchmarking: Learning from Best Practice. Business Studies, Vol 5, No.2. Thompson, J. L. (1997) Strategic Management. International Thompson Press: London. Carpenter, M.A. and Sanders, W.G. Strategic Management: A Dynamic Perspective Concepts and Cases, 2nd edition. Upper Saddle River, NJ: Pearson Prentice Hall, 2009 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Virgin Atlantic PESTLE analysis.

    as well as on the ground. E-commerce is a major effect on Virgin Atlantic because as they have a website it allows them to reach a wider variety of customers and also which allows consumers to contact Virgin whenever they wish.

  2. Unit 9: Marketing Strategy

    I am also using a defensive strategy against larger stores here as by opening in a quiet town with no large supermarkets it will be easier for Fabulous Frostings to take and maintain a share of the market. Competitors The general types of businesses which I will be competing with will include other bakeries in the surrounding area.

  1. Unit 12 - International Dimensions of Business Task 1

    are hurt or even worse killed during flights as this is the full responsibility of any airline and that is what makes this aims basically 100% similar. In terms of the objectives for this aim, RyanAir's is as follows - ''have planes regularly checked and maintained'' and BA's is ''ensure safety checks are carried out on all BA aircrafts''.

  2. Proctor & Gamble, Inc. (Scope Case)

    Plaque reduction is already proved to the HPB from Scope, but not for gum inflammation reduction like Listerine. They can work to formulate that in the long run, but can add the claim for plaque reduction now. This can be costly and time-consuming for Scope to attain the seals, and

  1. This case is about easyGroups efforts to diversify. The company established itself as ...

    easyInternetcafe was based on yield management. Unlike easyJet, which was based on Southwest Airlines, easyGroup was more of a pioneer in Internet cafes. This is reflected in the evolution of the caf´┐Ż concept through at least three generations - from the very large stores in the beginning with assistance to the smaller no-frills stores, to something more like a kiosk concept.

  2. Market entry strategy of Aldi and Lidl. Plans for expansion.

    Having said so, the company had strategy to become the cheapest underclass-discounter in UK and Switzerland fulfilling costumers needs. Buying goods in great volume from the same supplier , not spending money on brand promotion and fancy displays approach helped Aldi to achieve their guaranteed price range and become successful in the markets.

  1. Tesco Marketing Activities

    Since this study took place my mother said she has noticed a great change in the fruit and vegetables section in the store. One of the main arguments which arose during the conference was the fact that many people found there was a lack of selection in the fruit and vegetables section late in the evening.

  2. SWOT Analysis

    Seng o JOM HEBOH of TV3. o Kuntum Nature Camp. * Less brands produce compare to F&N Company. Company * Produce new brand and Flavours such as Justea Bubble. * The sales are less than F&N Company. * Has wide distribution network in Malaysia.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work