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Submitted by bubu on November 22, 2005
Category: Business
Words: 2394 | Pages: 10
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STRENGHTS:
The biggest strength of Ryanair is the company's low fares.
Founded in 1985, Ryanair is the first European company introducing low fares, no frills
and point-to –point routes to smaller airports. Its strategy is to stimulate demand,
particularly from budget-conscious leisure and business travelers who might have used an
alternative transport.
The company maintains low fares and profitability by vary careful management.
First of all, it cuts the costs by eliminating non-essential extras, such as in-flight meals,
multi-class seating, complimentary drinks, etc. Except cutting the costs, it gives priority
to features more important to the clients , such as more frequent departures, advance
reservations and baggage handling, and consistent on time services. All this gives a
chance to Ryanair to increase the number of routes, initializing additional UK-Ireland and
new intra-UK routes, and to increase the frequency of services on existing routes.
All these changes provide good image and efficiency of the company which can be
categorized as one of its most important strengths. The customers are given fast service,
regular flights with rare delays to many destinations, point-to point with no hubs for a
very low price.
As Ryanair is the first company in Europe offering such service and it has been on
the market for many years, its brand name is a big advantage as it is very well
recognized all over the continent.
Ryanair holds very substantial share of the market and that is why it is in position of
negotiating lower airport charges, which contributes to its low prices. Another reason is
...
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