Case Study- “Ryanair: the Low Fares Airline- Future Destinations?”
Strategy and Leadership
The following assignment is based on the Case Study below
“Ryanair: the low fares airline- future destinations?”
By Elanor O’Higgins
Questions to be discussed: I. Critically Review the leadership style of Michael O’Leary. II. Review the concept of value chains and core competences and explain how knowledge of these concepts might assist Ryanair in its strategic development. III. Consider using suitable models the competitive position of Ryanair.
[Note: The questions above are discussed in a flowing matter of the subject and not necessary answers them separately. They are all interrelated and go back and forth, mainly question no two and three.]
Introduction:
Since its inception in 1985, the Irish based airline (Ryanair website) Ryanair, is currently Europe’s leading budget carrier has experienced a rapid growth of the airline as a result of providing low cost, no frills service and designed low fare flights to stimulate demand whose idea originated by Michael O’Leary who was appointed CEO in 1994. It originally provided scheduled airline services between Ireland and the UK, with its biggest operational base at London Stansted Airport, UK. Following Michael O’Leary’s intervention, thanks to his determination, the company has now grown massively into one of the Europe’s first and largest low fares, no-frills carrier. Furthermore, it delivered 12% increase in profit despite a 74% increase in fuel cost, ancillary revenue grew by 36% later turning the airline to the most profitable airline in the world, on the basis of operating, and net profit margins. This steady growth has carefully guided by the genius yet controversial methods that have been used while competing with their main industry rivalries at the time- Easyjet, BA and KLM.
Leadership style of Michael O’Leary:
The two main leadership styles involved are transformational and transactional leadership. By definition, transactional leadership focuses on the
The following assignment is based on the Case Study below
“Ryanair: the low fares airline- future destinations?”
By Elanor O’Higgins
Questions to be discussed: I. Critically Review the leadership style of Michael O’Leary. II. Review the concept of value chains and core competences and explain how knowledge of these concepts might assist Ryanair in its strategic development. III. Consider using suitable models the competitive position of Ryanair.
[Note: The questions above are discussed in a flowing matter of the subject and not necessary answers them separately. They are all interrelated and go back and forth, mainly question no two and three.]
Introduction:
Since its inception in 1985, the Irish based airline (Ryanair website) Ryanair, is currently Europe’s leading budget carrier has experienced a rapid growth of the airline as a result of providing low cost, no frills service and designed low fare flights to stimulate demand whose idea originated by Michael O’Leary who was appointed CEO in 1994. It originally provided scheduled airline services between Ireland and the UK, with its biggest operational base at London Stansted Airport, UK. Following Michael O’Leary’s intervention, thanks to his determination, the company has now grown massively into one of the Europe’s first and largest low fares, no-frills carrier. Furthermore, it delivered 12% increase in profit despite a 74% increase in fuel cost, ancillary revenue grew by 36% later turning the airline to the most profitable airline in the world, on the basis of operating, and net profit margins. This steady growth has carefully guided by the genius yet controversial methods that have been used while competing with their main industry rivalries at the time- Easyjet, BA and KLM.
Leadership style of Michael O’Leary:
The two main leadership styles involved are transformational and transactional leadership. By definition, transactional leadership focuses on the
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