Strategic Service Vision of Ryanair
Operations Management – JS MT Assignment
Title: For a firm of your choosing (but not one of the firms studied in class, describe all of the elements of the strategic Service Vision (SSV) and assess the degree of ‘fit’ between the SSV and the firm’s Strategy/Environment. What would you change in the operations strategy or service system to increase the potential profitability and/or value to the customer?
Company (Service Provider) Chosen: Ryanair
Word Count: 3327 Words (not including Cover Page and Bibliography)
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Ryanair is an Irish low fares airline (or LCC – Low Cost Carrier) that was founded by Dr. Tony Ryan in 1985 to compete in the Ireland/U.K. travel market. The firm has gone from strength to strength, particularly under the leadership of C.E.O Michael O’Leary (since 1994) and is now the second largest airline in Europe in terms of passenger numbers. The airline’s business model is based on the model of Southwest Airlines in the United States, which Michael O’Leary was sent to America to study after Tony Ryan hired him in 1987. Ryanair operates a low fares service from several bases around Europe and from its humble beginnings - carrying 5,000 passengers in 1985 - it expects to carry 73.5 million passengers in 2011. Ryanair has been at the forefront of the evolution of the airline industry in Europe over the past two decades. Over the past 20 years, “the industry has evolved from a system of long established state-owned carriers operating in a regulated market to a dynamic, free-market industry” (Tinbergen Institute Discussion Paper, 2004). Many other airlines in Europe have now copied aspects of the low-cost model that Ryanair operates and in the East, AirAsia has copied the Ryanair model almost completely for its’ operation.
The Strategic Service Vision:
“The need of most service organizations to plan as well as direct marketing and operations as one function has led to the formation in leading companies of
Title: For a firm of your choosing (but not one of the firms studied in class, describe all of the elements of the strategic Service Vision (SSV) and assess the degree of ‘fit’ between the SSV and the firm’s Strategy/Environment. What would you change in the operations strategy or service system to increase the potential profitability and/or value to the customer?
Company (Service Provider) Chosen: Ryanair
Word Count: 3327 Words (not including Cover Page and Bibliography)
[pic]
Ryanair is an Irish low fares airline (or LCC – Low Cost Carrier) that was founded by Dr. Tony Ryan in 1985 to compete in the Ireland/U.K. travel market. The firm has gone from strength to strength, particularly under the leadership of C.E.O Michael O’Leary (since 1994) and is now the second largest airline in Europe in terms of passenger numbers. The airline’s business model is based on the model of Southwest Airlines in the United States, which Michael O’Leary was sent to America to study after Tony Ryan hired him in 1987. Ryanair operates a low fares service from several bases around Europe and from its humble beginnings - carrying 5,000 passengers in 1985 - it expects to carry 73.5 million passengers in 2011. Ryanair has been at the forefront of the evolution of the airline industry in Europe over the past two decades. Over the past 20 years, “the industry has evolved from a system of long established state-owned carriers operating in a regulated market to a dynamic, free-market industry” (Tinbergen Institute Discussion Paper, 2004). Many other airlines in Europe have now copied aspects of the low-cost model that Ryanair operates and in the East, AirAsia has copied the Ryanair model almost completely for its’ operation.
The Strategic Service Vision:
“The need of most service organizations to plan as well as direct marketing and operations as one function has led to the formation in leading companies of
Bibliography: Alderighi et al; The Entry of Low-Cost Airlines; Tinbergen Institute Discussion Paper; September 8, 2004. Brown, Douglas Robert; The Restaurant Manager 's Handbook: How to Set Up, Operate, and Manage a Financially Successful Food Service Operation 4th Edition; September 25, 2011. Heskett, James; Lessons in the Service Sector; Harvard Business Review; March 1, 1987.