It is obvious in the loss of 1.9m by Ryan air in reduced bookings due to terrorism and security threats notice in august 2006 (Johnson et al, 2008).Buyer power is low as passengers have little or no choice within the industry due to the low air fares offered by Ryanair. Due to the different barriers that exist in detracting Ryanair from expanding its market share, the future of the airline may lie in uncertainty but due to the expanding size of the airline industry and the possibility of providing its services in totally new countries the future looks bright for Ryanair.To export a reference to this article please select a referencing stye below:If you are the original writer of this essay and no longer wish to have your work published on the UKDiss.com website then please:Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.ukAll work is written to order.
This in turn increased passenger number. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Your message goes here This gives the aircraft manufacture more power as it can increase prices of aircraft and maintenance cost, another supplier power can be noticed in the fuel suppliers who can set any price standard as Ryan air has little or no control over these prices (Johnson et al, 2008).A swot analysis can be defined as the internal effects of strength, weakness, opportunity and Threat of an organisation.The major strength of Ryanair is in its ability to provide air travel services at low rates; it also provide higher rates of on-time departures and faster turnaround times due to its operations from less congested airports.The major weakness of Ryanair lies in their provision of short haul air services which can be easily replaced by other means of transportation such as road, rail and water, another weakness of Ryan air is the fluctuating profit of the airline due to frequent changes in fuel price, this is evident in its declining margins since 2005 (WW3).This involves the consideration of the potential value of complimentary products (Johnson et al, 2008), Ryan air is served with lots of opportunities for diversification, providing other channels for making profit ranging from hotels, excess luggage bookings, travel insurance which had climbed by 36% in 2006, also in western European countries alone there are 431 airports (Fewings, 1999) which were underutilised because national airlines concentrated on hub airports, therefore providing greater opportunity for Ryanair.Ryanair faces its major threat owing from governments and airport authorities who formulate different rules and rates that affect and distort the operations of Ryanair as well as reduced profits caused by the global economic financial crisis.Ryanair has continued to maintain its position in airline industry as the world’s most profitable airline, this it has achieved via various practices thus giving it a competitive advantage over others. If you continue browsing the site, you agree to the use of cookies on this website. In October 2006 Ryanair was voted the world least favourite airline by a pool of 4,000 travellers conducted by Trip Advisor but however in the same year Ryan air was reported as the world’s most profitable airline by Air Transport world magazine (Johnson et al, 2008) and also The airline increased from 4 million passengers in 1998 to 24 million in 2004 (Gröteke &Kerber,2004).Supplier power is high; Ryanair operates only Boeing 737-800s, and as of June 30, 2008, the company’s operating fleet was composed of 166 Boeing 737-800 aircraft (WW3), the airline chose to maintain the use of Boeing aircrafts in order to reduce cost of training and maintenance cost. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com.This essay aims at analysing the competitive positioning and competitive advantage of Ryanair, a short haul point to point airliner located in Europe using academic models and applying ansoff matrix model to the current and future business model of Ryan air.Ryanair competitive positioning in relation to its internal and external environments. Clipping is a handy way to collect important slides you want to go back to later. Competitive advantage can be defined as strategies, skills, knowledge, resources and competencies that differentiate a business from its competitors (Wang, 2009).Ryanair competitive advantage would be analysed using two models namely;Ryanair operations identifies with cost leadership competitive advantage strategy which provides airline transport services at low cost and operates a broad scope as it carries over 42 million passengers out of 18 European countries at the cheapest rate, however due to its short haul point to point routes and taking Europe as its major market its strategy can also be viewed as a Cost focus strategy.Ryanair strategic advantage over competitors can also be classified under two systems which are the Hybrid and the Low Price Low Added Value systems.


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2 months ago Registered Data Controller No: Z1821391. The airline also develops its services by the provision of ancillary services such as hotel services, travel insurance, excess baggage changes, flight changes fees, car rental services, in- flight sales etc.


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