The Five Market Forces
The five market forces that Ryanair has utilized most significantly led to its success. Customer service, operations, supplemental income, human resource management, and internet use are some of these forces. For its flights to be inexpensive, the company depends on these pressures. If the business keeps relying on these influences, though, operations may be impacted in the future. When taking into account how the internet is used, the majority of its rival businesses do the majority of their operations online. Ryanair's clientele will in the future be split up as a result of this. As not every consumer prefers this type, the company's employment of a single aircraft model could be detrimental to the business. Those who have carried their operations in this model may want a different experience. As a result of this, the customer may opt to get the experience from Ryanair’s competitors. This reduces the revenue made by the company. The company should be more creative on ways to get collect ancillary revenues by providing the customers with more attractive services. The customer care services should also be improved so as to provide its customers with perfect services and create a long-lasting relationship (Charles M Byles, 2012).
Ryanair’s Success from a Resource-Based View
Ryanair’s success from a resource-based view is contributed by how it runs its operations. Use of one model of aircraft is advantageous to the company in many ways. The company can buy spare parts in large stocks enabling it to make purchases at wholesale prices. As a result of this, the company can save a lot of money that is used to improve other areas within the enterprise. The company has also established a long-lasting relationship with customers who love traveling through Boeing helping the company to make more capital (Malighetti, Paleari, & Redondi, 2009).
Ryanair's Customer Handling from an Institution-Based View
From an institution-based view, Ryanair’s customer handling is poor since several customers have complained about this. As a result of this, the company is under threat of losing its customers to its rivals in the industry. However, the company has a strength that its competitors have been unable to adjust to in their businesses. That is offering low-cost flights. The company should ensure that cheap flights are offered at all times so as to stay ahead of its competitors. However, the law should be followed by the company when addressing customer issues, and the customers’ cultural norms should also be protected (EVANS, 2003).
Ryanair's Successful Strategy
Ryanair has a very successful strategy of ensuring that it makes profits despite the fact that it offers flights at low costs. As a result of this, it is possible for the company to provide free flights in perpetuity. Embracing the technology has helped the company in achieving this since of internet have reduced labor costs. Ancillary revenues collected by the company in different ways have also assisted in boosting the revenue collected. The use of one single aircraft model has helped the company save a lot of capital to enable it to offer free flights in perpetuity (Malighetti, Paleari, & Redondi, 2009).
Ryanair's Focus on Human Safety and Ethical Issues
Ryanair should focus on human safety first. The company should value its customers more than the money it obtains from them. The company should understand that the only reason it makes the profit and remains in operation is due to its customers. Therefore, ethical issues within the company should be observed. For example, Michael O’Leary is involved in several unethical cases. The act of insulting customers who simply complain about the company’s poor services should not be condoned. The law should take action to prevent such an occurrence in the future. I would recommend the CEO to respect his customers since they are the people who keep the company in operation (Charles M Byles, 2012).
References
Charles M Byles. (2012). Bookshelf Online. Retrieved from https://bookshelf.vitalsource.com/#/books/9781285545004/cfi/454
EVANS, N. (2003). Competitive strategy at Ryanair. Strategic Management for Travel and Tourism, 375-378. doi:10.1016/b978-0-7506-4854-7.50029-9
Malighetti, P., Paleari, S., & Redondi, R. (2009). Pricing strategies of low-cost airlines: The Ryanair case study. Journal of Air Transport Management, 15(4), 195-203. doi:10.1016/j.jairtraman.2008.09.017
