Ryanair Is One of the Case Study

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Ryanair's price strategy is very clever, as the company's prices are low enough to be appealing to customers, but are not low enough to cause the company any serious financial damage in the medium term or long-term. This price strategy seems sustainable for at least a medium period of time. The company can afford this reduced ticket fare due to its continuously increasing number of customers.

However, there are a series of weaknesses that must be taken into consideration. Employee productivity is one of them. U.S. carriers and European carriers of similar size have similar numbers of employees per company. But for European carriers the number of employees per aircraft is double than that in case of U.S. carriers. This means that U.S. employees are able to handle a double number of passengers, therefore having double productivity.

In order to expand its business and increase its success, Ryanair should take advantage of certain opportunities.

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For example, the company should diversify and increase the number of destinations. Emerging markets in Asia, like china and India constitute a great opportunity for any airlines company. Also, global development of tourism can be an opportunity for Ryanair. The company can fly to more exotic destinations, especially newly discovered ones, whose air transportation potential has not been completely exploited yet.

However, the company should take into consideration its threats as well. One of these threats is connected to the strong competition in the field. Although Ryanair is the leader of this market segment, there are several companies, like Easyjet and Air France with very close success percentage.

Reference List

1. History of Ryanair (2007). Ryanair Ltd. Retrieved November 16, 2007 at http://www.ryanair.com/site/EN/about.php?page=About&pos=HEAD......

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