Ryanair’s Strategic Issues and Suggestion

Ryanair (0704007 business ) their st rungy Ryanairs strategy is to mountain pass their services with cheap price. So their competitive advantage is Cheaper price than another(prenominal) rivals. To maintain cheaper price than other rivals, they faces several problems. facing problems in that respect were several challenges faced by minor appeal carriers in europium like rising aviation fuel follows, ensuring staff productivity and maintaining a large fleet for expansion. 1. There are lots of airways which is provide cheap grapple of flight such as easyjet, Virgin express, gentle wind Berlin and so on.As minor airways use the same routine, minor airports get a purchasing power from the airlines competition. It is delicate situation for Ryanair to minimize the fare. 2. The aviation turbine fuel costs fluctuated as economic and political situation changes and change magnitude demand of fuel. Also, the fuel should be paid by US dollars, so change of exchange rate affects to t he fuel cost. Ryanair had not added surcharges like other airlines so that they could maintain lower fares.But increasing fuel cost makes overweight to maintain lower price for Ryanair. 3. As I mentioned earlier, there are so more 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 expand their business in the European continent as it was becoming popular tourist destination. Also it is planning to expand its network to northward Africa.It requires more aircraft, human race 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 can be united and make a union of low er fare flight. Then they can have 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 thinker is really important. Also, the company can do Forward Trading of oil. 3. Customers choose some airlines by fare and service. As the automatic devices are developed 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 northeastern Africa, US etc , then try to be liberalization. After the negotiation, business expansion will be easier.