Conclusion
Ryanair company business strategy involves differentiation and cost leadership strategy to maintain good customer relationship. Also, the company puts more focus on low-cost strategy to attract more customers. Value chain analysis indicates that the company uses a value chain that fits well with their competitive strategies. Value chain used by the company ensures that the company will continue making profits while at the same time using a low-cost strategy. However, there is a need for some improvement in the value chain since the current value chain does not fit perfectly with the differentiation strategy used by the company. Failure of which the company to develop a perfect value chain that fits well with differentiation and cost leadership strategy, it can make the company lose a competitive advantage over the coming years. Therefore, implementation of a perfect and efficient value chain should be the first priority of the company.
Recommendations
Ryanair company currently is facing a bad reputation and a bad image. Therefore, there is a need for the company to brand their services in ways that will ensure high-quality customer care. Thus, the company needs to restructure its organizational culture since it is powerful and supersedes other factors that determine the success of a company. There is also a need for cultural interventions which in turn will help the company in its operations.
The main business agenda for Ryanair company is penetrating and gain more market share. Recent reports from the aviation industry suggest that the industry will grow substantially in the coming years. Therefore, Ryanair company should embrace that opportunity in order to grow substantially. In addition, the company also needs to create an effective and efficient synergy suggest that will allow more expansions. Therefore, the Ryanair business strategy should be aligned with its corporate strategy. It will be wise for the company to implement various changes so as to improve its business strategy and gain a competitive advantage in the coming years.
Fuel prices and political regulations are other challenges Ryanair company is currently experiencing. Thus, there is a need for the company to handle such challenges. Since Ryanair company is the dominating company in the whole aviation industry, such a challenge can adversely affect its functionality and operations. Therefore, it will be wise for the company to seek strategic alliances with other airline companies in order to be able to expand their operations.