Ryanair’s Strategic Issues and Suggestion

Ryanair (0704007 business ) their strategy Ryanairs strategy is to offer their services with threepenny price. So their competitive advantage is Cheaper price than other rivals. To maintain cheaper price than other rivals, they faces several problems. facing problems in that respect were several challenges faced by low embody carriers in Europe like rising atmosphere provide costs, ensuring staff productivity and maintaining a large fleet for expansion. 1. There are practically of airways which is provide cheap fare of flight such(prenominal)(prenominal) as easyjet, Virgin express, Air Berlin and so on.As minor airways use the homogeneous routine, minor dromes get a purchasing power from the airlines competition. It is hard mail service for Ryanair to minimize the fare. 2. The aviation turbine give the sack costs fluctuated as economic and semipolitical situation changes and increasing demand of fuel. Also, the fuel should be paid by US dollars, so change of exchange rat e affects to the fuel cost. Ryanair had non added surcharges like other airlines so that they could maintain lower fares.But increasing fuel cost draw offs hard to maintain lower price for Ryanair. 3. As I mentioned earlier, there are so many airlines offer cheap fares in Europe. The major competitors of Ryanair were easyJet, bmibaby, Air Berlin, SkyEurope, Wizz Air and Aer Lingus. Also, there were other low cost substitutes like train and tram services in Europe. 4. Ryanair want to billow their business in the European continent as it was becoming customary tourist destination. Also it is planning to expand its network to North Africa.It requires more aircraft, human resources, and agreements with airport authorities and governments. But the incidents of terrorism in UK and Europe, requirements from airport authorities and governments is hard for them. providing solutions 1. As there are quite lots of airlines which offer low fare of flight, they loafer be united and make a u nion of lower fare flight. Then they can puddle a purchasing power to local airports. 2. When the CEO judges the fuel cost goes up and thinks the time of low cost of fuel, CEO can make a long term contract with oil supplier.At this strategy, CEOs head is really important. Also, the company can do Forward Trading of oil. 3. Customers look at some airlines by fare and service. As the smart devices are essential fast, they can reduce the cost by replacing from human resources to automatic devices. But the part of offering services, employees should be focused. 4. Do negotiation with the countries such as North Africa, US etc , then try to be liberalization. afterwards the negotiation, business expansion will be easier.