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

Bowman's Strategy Clock&Strategy Suitability: Ryanair

Extracts from this document...

Introduction

Bowman's Strategy Clock&Strategy Suitability: Ryanair Ryanair is an airline services company and was founded in the 1985 to provide hauls between Ireland and UK as alternative to the monopoly of Aer Lingus. Ryanair started to become the first European low fares in the 1995; this restyle of the company was built on the model of the Southwest Airlines, the highly successful Texas based operator. Nowadays, Ryanair's objective is to maintain the leadership of low fares airline in Europe, basing its strategy on providing "no-frills" service. 1) Identify the strategy pursued by Ryanair based on the Bowman's strategy clock. M. Porter in his book, "Competitive Strategy: Techniques for Analyzing Industries and Competitors", reduced competition down to three classic strategies: Cost leadership, Differentiation and Market segmentation (or Focus). Looking at Porter's strategies in a different way, Cliff Bowman and David Faulkner developed Bowman's Strategy Clock. This model is well represented in the following figure: D. Faulkner and C. Bowman, The essence of competitive strategy, Prentice Hall, 1995 Each position briefly describes different competitive strategy options; also, focusing on perceived product/service benefits and price, the model represents different positions a firm can assume in the market. ...read more.

Middle

All these cost reductions allow Ryanair to have low fares and so, target customers that are price-sensitive. In the article "Ryanair" by Eleanor R.E. O'Higgins we can read that the term "Ryanair generation" was coined to describe the younger educated Irish emigrant population in the UK. Furthermore, in the article it is possible to notice, in the Exhibit 4a, that Ryanair's customers care more about the product price than the value of the services that the company has. 2) Is Ryanair's strategy sustainable? In order to have a sustainable competitive advantage, a company should develop a sustainable position in the long run, so it is possible achieve a performance above average in the industry. The framework I am going to use is the Barney and Hesterley's VRIO framework: in order to lead to a sustainable competitive advantage a resource or capability should be Valuable, Rare, Inimitable and Organized. Valuable: "Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" The fact that Ryanair is a low cost fares airlines constitutes the introduction of a new business model (cost leadership) in a different context (airplane transport industry). ...read more.

Conclusion

This profitability was seen to be unique among airlines worldwide because many other airline companies struggled with financial losses. 3) Would you recommend any changes to Ryanair's approach? In the case study it is possible read that Ryanair would introduce a number of cut-costing new features on its flights; for example the Ryanair fleet would be devoid of reclining seats, windows blinds, headrests, seat pockets and other non-essential. This kind of no-frills strategy might be supported by creating a favorable perception about the safety of their airplanes and the value of the Ryanair's brand. This could be developed starting with the improvement of the cleanliness of the toilets and the interior of the airplanes. Another changes might be to increment the catering and to introduce ancillary services such as television and internet services on flights implementing strategic alliance. Ryanair should establish new hauls in the est-European countries because of the entrance in the EU of new nations and focus more in main airports. Ryanair should allow other company to advertise its airplane cabins. This should offer to the other external company to advertise customers during all the flights long for a fee. The advertisement might be a sticker stick on the folding board in front of the passenger. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Case Studies 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 GCSE Case Studies essays

  1. unit 8 business online p1

    The method used will vary the price of distribution. The longer the distribution time the less delivery will cost whereas the shorter the delivery time the more money it will cost to get to you. There is a cheaper to send goods by sea - and slower - than it is to send them by air.

  2. Would the opening of a fast food restaurant on Riddy lane (Luton) represent a ...

    Also a sole trader may find it hard to get established in the market. In franchises you have a head start over a sole trader as you already are established in the market because of the success of the franchise.

  1. EVALUATE THE EFFECTIVENESS OF APPLES APPLICATION OF THE MARKETING MIX WITHIN THE UK MARKET

    At the same time they are adding new features for example the latest iPod had more variations in colour and have rounded corners. Question 4 - What is your opinion of the price (�249) of the IPhone? This graph shows that the majority of consumers were unimpressed with the iPhones pricing.

  2. sainsburys. The aims and objective of Sainsburys are very straightforward

    Explain how the promotional campaign "p" relates to the other elements of the marketing mix in this particular campaign. The promotional mix consists of the three Ps, which are product price and place. This is the mix that brings and shows how Sainsbury's will try to promote their new products or even themselves as a business.

  1. Free essay

    Target Markets at Whittlebury Hall Hotel

    The young adults would use the facilities occasionally because some have jobs and don't have much of an outcome so have more spare money to spend on things like Spa and Leisure club within Whittlebury Hall. Restaurant The sorts of social economic groups within the restaurant are Highly paid and

  2. T-Mobile Marketing Strategy

    When a company is in power of a monopoly they can generally charge high prices and they will still keep their customers. This is due to no competitor pressure however if a company starts to charge too high others may enter the market and offer a more efficient adaptation of the service or product.

  1. Strengths & weaknesses of a business idea. Research for a new electronics shop.

    11 people would expect to see advertisements on Billboards 28 people would expect to see advertisements on Televison 7people would expect to see advertisements on Newspaper 4 people would expect to see advertisements on Other From the results, it tells me more people would expect to see advertisements about electronic

  2. Primark and Blockbuster Describe the main aims and objectives of the business and the ...

    Overall, the business has done great but for them to reach their aims and objectives they need to build more stores to reach their max profit and not go bankrupt. Blockbusters have gone bankrupt by Netflix. Blockbuster has been sued for coping Netflix ideas which concluded the future of blockbuster into bankruptcy.

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