Strategic Management College Case Study Example | Topics and Well Written Essays - 500 words

Strategic Management College - Case Study Example Ryanair uses online booking and ticketing system to lower brokerage fees and ticketing costs, thereby redefining its relationship to its customer markets. They follow differential pricing depending upon availability and demand, they operate on short-haul routes or airports which have competitive cost terms, but these cost-saving techniques do not really add value to the service to the customer. They have reduced services like not allotting seats and provide no frills to the services. They concentrate on outbound logistics, attempting to reduce the turnaround times by opting for secondary airports. This results in fewer terminal delays and more competitive airport access and handling costs. Faster turnaround results in maximizing aircraft utilization but ultimately these are merely cost reduction techniques. They have outsourced the non-core areas like partial maintenance and ground handling activities. Ryanair has been concentrating on process and service but not on its people and ma ximizing utility of technology. Ryanai faces several challenges in its strategy to push down costs. They have not been concentrating on enhancing business communications which reflects in their poor employee and volatile customer relations.