What Is Ryanairs Strategy - Assignment Example

Ryanair has a strategy which revolves around keeping costs low and being able to provide services to its clients at the lowest possible price. It does that by cutting down every possible cost that might not be adding value to its operations and consequently charging clients for extra services. With other airline services, meals and luggage are often offered for free and no extra amount is charged for such services. However, Ryanair’s strategy involves charging a customer for these things as well.

Moreover, the company also gets involved in marketing gimmicks to keep its name active in the industry. Just recently it offered tickets for one penny each and that this strategy resulted in half a million tickets being sold. It is very essential for Ryanair to continuously keep a track of what’s happening in the organization internally. This is because as a company it competes on a low-cost basis, so it needs to make sure that it is not incurring any costs that aren’t necessary (Creaton 35).

Moreover, as an organization which has a cost-cutting strategy, the company’s bosses would always be looking to cut down costs one way or another. In such a case, the company would need to make sure that no such costs are cut down which hinder the safety of the company’s operations or compromise upon the quality of service. Being able to study the internal organization of the company would therefore only enable it to focus on key areas of concern and enable it to thrive successfully as an organization.

Ryanair’s value as mentioned above lies in it being the cheapest airline provider. To do that it must formulate its strategy accordingly, and also make sure it is properly implemented. Keeping in view the company’s values, the bosses need to make sure that no unnecessary expenses are made, and everything is kept as cheap and simple as possible because that’s the only thing they compete on. In line with the company’s values, the bosses need to make sure that only those investments are made which fall in line with the company’s strategy of a low-cost carrier.

Obviously, there would be no point in buying business class planes as the company only cater to the economy class sector. Also taking any such decisions which would increase the price of the tickets would be deemed worthless in line with the company’s values (Creaton 15).