Ryanair, like all low-cost airlines, has chosen to differentiate itself with its price strategy. This strategy has an overarching objective, which is the minimization of total costs. To remain competitive, Ryanair carries out a continuous level of direct production costs, but also at the cost of designing, marketing, distribution, etc.
The strategy of cost leadership has of course an impact on the price offered, which is quite low. Ryanair is the company that knows best its strategy of cost leadership, which allows the company to obtain a leading position. Ryanair's competitive strategy also involves considering the airport as a source of profits rather than as factors of financial expenditure.
The intensive use of aircraft is directly related to special secondary airports and an organization of the company avoiding the "hub". The carrier serves only small regional airports, less expensive (air taxes low and cut airport fees) and less saturated. This not only ensures the timely, but also to increase the aircraft turnaround.
Ryanair caters to leisure travelers who are interested in minimizing their costs of transport and professionals looking for competitive rates. Ryanair mainly uses the Internet and call centers for direct sales. These are channels that are outside traditional channels but can make savings in staff costs and agency commissions.
The marketing strategy of Ryanair can be summarized as a combination of in-house advertising and attacks against the price of the nearest competitors (Easy Jet Buzz). The company is known for making virulent slogans against its competitors and can play on established brand equity among existing consumers. Ryanair does not care about the whole trip but unique support transportation.
Tags: Ryanair, low-cost airlines, strategy of cost leadership as followed by Ryanair
[...] Companies like Ryanair can also increase the frequency the use aircrafts for travel because of the low prices. However, the growth of Ryanair on the market also depends on geographic expansion. If Ryanair does not keep up, new markets will be formed by new airlines and new airports. Ryanair has been able to push the low-cost model to its limit. They even make their pilots buy their own uniforms and pay for their own coffee. But as long as Ryanair can afford tickets at such low prices, it is guaranteed a very high number of passengers. [...]
[...] Ryanair has imposed a new marketing model. Relationship marketing that is used by national companies like Air France to ensure customer loyalty has been forgotten, Ryanair operates on transactional marketing where the human dimension is neglected. Relationship marketing has given way to a transactional approach in which the human component is ignored in favor of the Key Performance Indicator. In this new model, only the performance and compliance with Key Performance Indicators are given priority. III. The services Activities The primary activity of Ryanair is transporting their passengers. [...]
[...] The development phase sees the emergence of many new competitors. Therefore, the need for massive investments to gain or maintain market share is very important. During the expansion phase, the product or, service in this case, succeeded in winning a place on the market and realized early benefits. The competition became interested in the service in question. The improvement of services based on the popularity among early users and feedback from them can help ensure a competitive advantage. Ryanair will operate intelligently, based on the market demand and organize its offers around this demand and differentiate itself competitors in order to take up the phase of expansion and profit. [...]
[...] Another threat is Ryanair's dependence on the Exchange, the company is listed and this generates profits but a decrease in the value of the title would be a disaster for it. II. Customer relationship and its many dimensions Ryanair's customers are generally the young, upper class crowd. But because they also visit some major airports, Ryanair is attracting customers of business companies who wish to cut the travel costs of their employees. Ryanair is not overly concerned with customer satisfaction. Since the advent of Ryanair on the aviation market, the rules of the competition have changed. [...]
[...] The human resource policy The management strategy The managerial policy of Ryanair is very innovative. The company relies heavily on its employees as they perform several functions from serving the passengers to cleaning the aircraft during flights. The management structure is flat at Ryanair; their managers consider themselves to be more as coordinators rather than "bosses." Their recruitment process is also more selective than other companies as they place an emphasis on the character and versatility of the applicant. Ryanair employs 3,810 people as flight attendants and pilots. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
