Short Discussion Paper on The Success of Ryanair

The question posted for the students was "Why has Ryanair been so successful thus far?" along with a case study. The resulting essay is a short two page response.

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Why has Ryanair been so successful thus far?

The simplest reason which can be given for the success of Ryanair is that the CEO of the company as well as the board which manages the airline has a vision for the company that makes it profitable and successful. Moreover, the leadership of the airline is able to pass on their vision into actual practices, procedures and cost cutting applications which make Ryanair operate better than its competition. As discussed by Welch (2005), the vision of the CEO of the company can take it to great heights and this seems to be the reason for why Ryanair has been a success.

Additionally, Ryanair displayed the same qualities which are often seen in the behavior of small companies. Eugenio and Pernías (2006) conducted an extensive study that correlated production and innovation strategies to size of the firm. They report that small companies were most likely to innovate in terms of production and also use innovations to come up with new products for the market. The researchers conclude that, “Small firms tend to be more innovative overall (Eugenio & Pernías, 2006, Pg. 1)”. Behaving like a small company, Ryanair certainly moved fast when innovations were offered to the airline industry and often led the way towards offering services that actually improved the manner in which they could get more money.

Further, as discussed by Levy and Powell, (1998) the information systems used by a company can lead it towards being more profitable and this was certainly true for Ryanair. The company used technology provided by the internet to show airline travel services buyers that it was the cheapest company to fly with as compared to other airlines offering similar services. In essence, the success of Ryanair also owes a lot to the company being the price leader in a market where every airline is trying to cut costs and reduce expenses. As shown by the case study, Ryanair was simply able to do more and be a success where others could not do the same.

Of course, the picture presented in the case study is not all rosy since customer satisfaction levels with the airline are extremely low and the amenities offered by the airline are nonexistent. The quality of the service as well as the manner in which the service is provided leaves a lot to be desired but since Ryanair is the cost leader, it continues to get clients and book passengers. Undoubtedly, the manner in which the CEO of the company controls the organization as well as the path on which the company is being guided is entirely dependent on the vision of the CEO since he has been known to do things which are against public opinion and against the expectations of industry analysts. However, his methods have been largely successful and it is easy to see that his agenda for what the company should do has made the company achieve greater heights. If the same vision can be continued for the future, there is no reason why Ryanair should not be able to continue as it has in the past.

Works Cited

Eugenio, M and Pernías, J. 2006, ‘Innovation Complementarity and Scale of Production’, Journal of Industrial Economics, vol. 54, no. 1, pp. 1-29.

Levy, M and Powell, P. 1998, ‘SME flexibility and the role of information systems’, Small Business Economics, vol. 11, no. 2, pp. 183-197.

Welch, J. 2005, Winning, HarperCollins.

Word Count: 588

Other Details about the Project/Assignment
Subjects: Business Management -> Management Case Studies
Topic: Discussion Paper on The Success of Ryanair
Level: College / University
Tags:

Ryanair, Short Discussion Paper, Business Management,

Price: $1.95

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Project Details

Subjects: Business Management -> Management Case Studies
Topic: Discussion Paper on The Success of Ryanair
Level: College / University
Tags:

Ryanair, Short Discussion Paper, Business Management,

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