STRATEGIC CAPABILITY ANALYSIS

Strategic Capability Analysis



Strategic Capability Analysis

Company Overview

Ryanair is the leading airline of Europe competing on low costs. Founded in 1985 by the Ryan family, it started its operations as a scheduled airline offering only one route, i.e. from Ireland to UK. In very little time, the airline established itself in the international aviation industry, as a low cost airline providing international routes. The technique which Ryanair use for its business enterprise is robust, making efforts to turn Ryanair into the number 1 low cost leader airline across Europe. The objective, which Ryanair has, set through this technique, is to position itself as the top low-fares scheduled passenger airline of Europe. In order to achieve this objective, the company offers incredibly low fares established to create demand, and target those leisure and home business travellers, who are fare conscious.

The selling policy of Ryanair is selling one-way seats, while setting the fares with respect to the demands of various flights. Rather than using large and congested airports, Ryanair focuses on using secondary airports that are comparatively less congested, and provide high rates for on time departures. As a result of choosing secondary airports, Ryanair had fast turnaround times and can avoid a high rate of terminal delays, which eventually leads the company to gain a competitive edge over other airlines in managing expenses.

Strategic Objectives of Ryanair

The major strategic objectives of Ryanair include:

To become the only airline of Europe which offers the largest number of routes?

To offer the lowest possible rates to the passengers compared to other European airlines

To offer the most valuable service to the consumers compared to all other European airlines and,

To attain unparallel levels of development

Strategic Capability Analysis of Ryanair

The analysis of strategic capabilities of an organization helps in identifying the resources and core and threshold competencies ...