BUSINESS MANAGEMENT HOMEWORK
World is globalizing more and more every year with the help of the technology. With the help of the technology, many industries have developed significantly. One of these industries is aviation which has been increasing at annual rates of 4%-5% since 1980s. The growth in the aviation leads to high competition among major elements of the sector, airlines. Some airlines companies came into prominence with the growing industry.
1)Ryan Air shows a remarkable success in this challenging competitive industry and become the largest low-cost airline in Europe. As we peer into Ryan Air strategy, it is clear that Ryan Air’s generic strategy is supply side dimension, which are cost leadership and differentiation on a broad market scope. No doubt, Ryan Air brought to air transportation a distinctive approach. As the industry develops, customers became more cost-conscious and price-sensitive. In this case, Ryan Air approaches to flying as a basic kind of transportation, instead of a sophisticated manner. People just want to fly safe, quick, efficient and safe. Every service is charged with an extra cost. For instance, Ryan Air is the first airline charge for luggage. Moreover, flights are ‘free seat ‘and do not include any service during flight. From take-off till landing, there is an announcement during flight, informing special ticket offers. Everything is considered commercial. CEO of Ryan Air thinks that all the revenue will be from related services like accommodations, car rentals, and extra fees. Ryan Air is the cost leader among rivals with lowest average. Ryan Air captured this cost advantage by achieving a high asset turnover. In other words, fast return flights and intense operational work. It is called economics of scale. Ryan Air has a fleet of 410 Boeing 737 which are medium range aircrafts. The destination points are maximum 2 hours long. That provides short haul to haul short flights, resulting with more intense use of...