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Unit 32 – Business Strategy Assignment

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Introduction - Unit 32 – Business Strategy

When a corporation sets out to accomplish its objectives, it uses the word "business strategy" to describe all of the measures it takes to do so. What a company produces, what it requires to have, and how it may achieve its objectives are all part of the process. That knowledge influences the allocation of assets, both personnel and equipment, in the organisation. Having a plan in place allows the organisation to prioritise tasks when resources are limited (Williams and Aaron, 2018). When everyone in the company is on the same page when it comes to the plan, a solid foundation is created to keep everyone on track. Despite its importance, business strategy is just one part of a company's overall plan. The description of a company's business strategy differs from that of its goal. While the mission is a statement of what management hopes to attain, the strategy is a plan of action to reach that goal.

An Irish extreme low-cost airline, Ryanair DAC was formed in 1984. There are two principal operating bases for this airline: "Dublin and London Stansted Airports" in the Republic of Ireland. As a subsidiary of Ryanair Holdings, it has Ryanair UK, Buzz, Lauda, and Malta Air as partner airlines. In 2016, Ryanair was the most popular European budget airline in terms of planned travellers carried, and it had more overseas customers than any other carrier. Boeing 737-800s make up the majority of Ryanair Group's fleet, with one 737-700 serving as a chartered aircraft, a back-up, and for pilot training (Ahmedova, 2020). As a consequence of the liberalisation of Europe's aviation sector in 1997 and the effectiveness of its low-cost corporate strategy, the airline has grown rapidly. 40 countries in Europe, North Africa (Morocco), and the Middle East are served by the transportation system of Ryanair.

Analysis of the Impact and Influence which the Macro Environment has on an Organisation and its Business Strategy

Application of Appropriate Frameworks and Analysis of the Impact and Influence of the Macro Environment on a Given Organisation and its Strategies


It is Ryanair's stated vision to become “Ryanair’s objective is to firmly establish itself as Europe’s leading low-fare scheduled passenger airline through continued improvements and expanded offerings of its low-fare service.” Ryanair's vision statement shows how the company aims to grow and become one of Europe's top air transportation service providers (Köseogluet al., 2020). It is apparent that Ryanair wants to improve its services, lower ticket costs, provide adequate travel packages, and preserve service quality, among other things, in order to achieve this goal. Consumer services, flight regularity and in-flight amenities are only some of the organisational other priorities, along with passenger comfort.


Following this goal statement: “To offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost containment and efficiency operation”. The organisational long-term objectives are outlined in Ryanair's mission statement. Despite the significant losses the firm incurred as a result of the high tariffs, it was able to reclaim its former prominence in the European airline industry by altering its approach to lowering ticket prices (Chege and Wang, 2020). Ryanair has carried millions of passenger’syears after the year in accordance with its stated objective. In order to do this, the airline provides efficient operating activities, excellent consumer service, low-cost plane tickets, and enticing promotions. To maintain its standing in the airline business, nevertheless, the corporation is still trying to expand passenger flow.


In Europe, Ryanair is regarded as the greenest airline. As a result, they've made significant investments in new aircraft engine technology that are both environmentally friendly and energy-efficient. Ryanair just became the first EU airline to publish a monthly CO2 emissions report (Luet al., 2020). Clearly, this demonstrates the organisational dedication to cutting carbon dioxide emissions without sacrificing flight safety and quality or the security of the aircraft itself.

Environmental Analysis of Ryanair (PESTLE)



Political Factors

As the pandemic advances, each country's government will have to determine the criteria for migration restrictions. Prevent operational hiccups and monetary losses by staying abreast of new changes(Glyptiset al., 2020). Aviation regulator ENAC has previously warned the airline that operations in Italy may be temporarily halted. Due to Ryanair being suspected of not respecting customer social separation norms, the airline disputes this.

Economic Factors

From April to June of this year, Ryanair had a 99 per cent decrease in passengers as a consequence of travel restrictions. A net loss of over $217 million was recorded as a result (Quevedo, Uchiyama and Kohsaka, 2021). Ryanair has said that it would lay off 3,000 people, or 15% of its workforce, as a consequence of this loss. In order to prevent more layoffs, the salary will be reduced by 20%.

Social Factors

Only 12% of airline customers are business travellers, yet they account for approximately 75% of the airline's earnings. As a result of their propensity to purchase pricey last-minute tickets in the premium sections, this is the case(Glyptiset al., 2020). They are also more likely to take advantage of airline companies' lucrative incentive programmes since they are frequent flyers.

Technological Factors

Ryanair, despite the current slump in the economy, is confident in its long-term prospects. Preparation for a possible increase in air travel demand after the end of the epidemic(Quevedo, Uchiyama and Kohsaka, 2021). As of November 2020, they want to buy Boeing 737 MAX jets for $17 billion from them. Ryanair plans to begin flying the first 30-40 of these aircraft as early as the summer of 2021.

Legal Factors

Restrictions on travellers to the Republic of Ireland and advice to avoid non-essential travel are unlawful, Ryanair claims(Glyptiset al., 2020). It was upheld by the "High Court of Ireland" notwithstanding Ryanair's appeals, saying that passengers' movement restrictions are only a guide.

Environmental Factors

Vehicles are primarily responsible for the majority of greenhouse gas emissions. Transportation accounts for 28.2 per cent of all greenhouse gas emissions. Automobiles, trucks, trains, and planes all rely on fossil fuels for their power(Quevedo, Uchiyama and Kohsaka, 2021). Air travel has so been slammed for its persistently high levels of greenhouse gas emissions.

Critical Analysis of the Macro Environment to Determine and Inform Strategic Management Decisions

As the biggest and biggest popular low-cost airline in Europe, Ryanair primarily caters to leisure travellers and those travelling to see family and friends. As a "lowest cost scheduled airline," the company's business strategy is based on how many seats it sells every trip rather than how much money it earns from each sold ticket. Ryanair is concerned about any environmental problem that impacts the cost of flights or the likelihood that consumers would book a journey (Chenet al., 2020). There have been several incidents in the recent past that have impacted consumer perceptions of flying safety. There is a clear link between worldwide threats and global aviation travel, as shown by the September 11 attacks and "Sars." Ryanair's sales soared despite this risk since it is a European airline and has a successful marketing strategy. It's still a huge concern for airlines because the global political climate is so uncertain.

Terror strikes in Great Britain are a major concern for Ryanair, which is still a major operator among the United Kingdom and Ireland and mainly relies on London Stansted Airport. Ryanair's key principles are low cost, value for money, and efficient travel.Irrespective of the turmoil in the environment, these essential ideals should not be altered. Ryanair's strategy relies heavily on cost-cutting and other sources of revenue other than travel charges since it can't afford to raise fares to pay for its costs (Voskresenskaya, Shandova and Sofiienko, 2020). Fuel prices, taxation, and governmental restrictions are critical to the low-cost plan. As a result of the liberalisation of airlines, competitiveness and air traffic grew, as well as Ryanair's profits. Enhanced EU security and environmental standards have resulted as a result of this. The EU's running expenses will rise as a result of this.

There are two ways Ryanair may keep its cheap fares: either decrease expenses elsewhere or increase ancillary service income to offset rising expenses for safety and environmental levies. The unpredictability of the oil price, which is linked to political events, is a significant challenge. In the near future, the oil price will be a big issue for airlines because of the fragile political environment in most major oil-producing nations (Kpienbaarehet al., 2020). Since aeroplane fuel rewards are valued in US dollars, currency exchange rate changes compound the problem. However, Ryanair has benefited from the lower dollar relative to the pound.

Critique and Interpretation of Information and Data Applying Environmental and Competitive Analysis to Produce a Set of Valid Strategic Directions, Objectives and Tactical Actions

Since its establishment in 1985, Ryanair has had tremendous success in attracting new passengers and expanding swiftly. Despite the fact that the airline market is incredibly competitive, Ryanair has been able to weather the storms that many other carriers have not (Trieflingeret al., 2021). On its website, Ryanair outlines its eight-step plan for success:

  • Maintain cheap prices for passengers.
  • Ensure the highest level of client satisfaction via outstanding customer service.
  • Short-haul lines should have regular point-to-point service.
  • Realize industry-leading efficiency.
  • Use the Internet to your advantage.
  • Maintaining high standards for both safety and quality should be a priority.
  • Ancillary services may help improve operational outcomes.
  • Prioritize market expansion in narrowly defined niches.

In the crowded airline industry, Ryanair is able to stand out by focusing on its core skill. 13 Growth is projected to continue for years to come by consistently giving the finest value.

Assessment of an Organisational Internal Environment and Capabilities

Analysis of the Internal Environment and Capabilities of a Given Organisation

SWOT Analysis


There are "more than 1,600 flights spanning 30 countries in Europe and North Africa, 186 airports of which 69 are 'bases,' where Ryanair bases aircraft and people." Ryanair has the largest European short-haul system. Nevertheless, the "Lufthansa Group" flew 84.4 million passengers, which comprises all of the airline's affiliates, in the 12 months to August 2014. Cost-effective cheap fares are made possible by reduced overhead. Any European airline's average fare is cheaper than Ryanair's (Shahzadet al., 2020). Ryanair, on the other hand, specialises in short-haul flights, thus its average rates are likely to be cheaper than those of its long-haul rivals. Nevertheless, Ryanair's average short-haul prices are less than the normal short-haul rates for any other European airline.


While Ryanair's earnings are highly cyclical like the rest of the industry, in the second quarter of its fiscal year, the firm relies heavily on the strong northern hemisphere summers to offset a poor winter. Compared to the previous ten years, when it had consistently made profits in all four quarters, this trend of periodicity has been more evident after 2008/09. When it comes to offering safe and affordable air travel, Ryanair has long boasted of its ability to meet the needs of its consumers (Hock-Doepgenet al., 2021). This is exactly what short-haul consumers want from a low-cost airline. Nevertheless, Ryanair's brand has consistently done badly in polls, questionnaires, and honours for many years.


Ryanair's CEO, Michael O'Leary, informed a publicity convention that Ryanair would compensate a small fee per chair to the price consented for 180 737-800 aircraft decided to acquire in 2013, validated by the unit functioning expense investments and the additional revenue produced by the eight more seats. Ryanair is believed to have gotten a big reduction from Boeing's list price at a better deal than its rivals. Ryanair believes that the MAX purchase will let it extend its inventory from 304 today to 520 in 2024, and increase passenger traffic from 82 million to 150 million per year, taking into account the anticipated aircraft discharges (Dubeyet al., 2020). The average annual growth rate over the next 10 years will be 6 per cent, compared to the 13 per cent annual growth rate for the previous 10 years.


Since its inception, Ryanair has maintained an excellent safety record, despite repeated claims in the media that its low-cost strategy implies that it sacrifices quality. There is no evidence to support these claims, and Ryanair has not hesitated to take legal action to protect its brand (Bocken and Geradts, 2020). Although the notion endures, a big disaster might have a negative impact on Ryanair's reputation and its expansion goals.

VRIO Analysis

  1. Valuable: If the assets can be used to satisfy consumer demands, then this is an important consideration (Guptaet al., 2020). Ryanair is able to provide the lowest prices because of government subsidies, airport tax decreases, and its low-price business strategy. This draws millions of consumers.
  2. Rarity: Because of this, Ryanair's governmental subsidies and airport fee reductions are very valued and unique(Harsch and Festing, 2020). Ryanair, on the other hand, receives government subsidies and reduced airport fees because of its capacity to recruit consumers through its alternative routes.
  • Imitable: Ryanair seems to have a significant cost advantage over other airlines that do not have the resources indicated above(Guptaet al., 2020). This material is also seldom transmitted or copied, as previously indicated.
  1. Organisation: Based on the facts, Ryanair is able to effectively give the lowest cost and lowest price by using its varied resources and talents (Harsch and Festing, 2020).

Competitive Implications





Firm Performance

Competitive Disadvantage






Competitive Parity






Temporary Competitive Advantage






Sustainable Competitive Advantage






Critical Evaluation of the Internal Environment to Assess Strengths and Weaknesses of an Organisational Internal Capabilities

After examining its internal elements, it was determined that Boot's success stemmed from its interactions with customers and the exceptional quality of its products and services. Boots has a lot going for it when it comes to attracting new customers and keeping them satisfied. As a consequence, a business must spend a substantial amount of resources in the form of human, financial, and technological resources in order to maintain its influence. In the eyes of many, Boots' biggest difficulty is its dependence on the British market (Zhanget al., 2020). One good result of this vulnerability has been that the firm has been able to focus on a certain market and boost its operational efficiency there. As a result, the company has had difficulty growing its sales and profitability in the UK market due to limited growth opportunities.

Evaluation and Application of the Outcomes of an Analysis Utilising Porter’s Five Forces Model to Given Market Sector

Application of Porter’s Five Forces Model to Evaluate the Competitive Forces of a Given Market Sector for the Organisation –

Porter’s Five Forces Analysis has been considered as a strategic device premeditated to provide a worldwide overview, rather than an exhaustive trade analysis technique. This particular strategic tool will help Ryanair to review the strength of its marketing situation. 

Bargaining power of the buyers

It has been observed extensively that there are massive numbers of buyers in terms of the aviation industry which exceedingly impacted the bargaining power of the buyer. Basically, travel agencies fall under the category of the major buyers of the airline company. Therefore, in the case of this Ryanair Airlines, customers are found to be dissatisfied regarding the fact interrelated to lack of customer loyalty (Saeed, 2016). In terms of the airline industry, if any industry efforts to boost its fares, then buyers will definitely move towards the other airlines. In fact, this makes the bargaining power of the consumer comparatively high than any other industry (Numano?lu, 2020).

Bargaining power of suppliers

The bargaining power of this airline industry supplier is comparatively elevated due to the reason of its limitations or low rate of the supplier. Boeing and airbus have been considered as the primal supplier or the manufacturers of the airlines' sectors. Boeing has always been the foremost supplier of Ryanair. It is indeed true that Duopoly is responsible for creating high prices for the airline industry (Adelakun, 2020). The prices limitation has been maintained by the world trade association and thus this airline company has not been able to bargain with its suppliers. Therefore, Ryanair encountered elevated-cost stress from monopoly suppliers regarding the airports along with air traffic control.

Rivalry among competitors

The intensity of rivalry in this particular airline industry is moderately high regarding the fact of availability of multiple low-cost airlines. Each and every airline industry is continuously striving to get a successive position in the marketplace in order to diminish their costs through reducing onboard passenger facilities (Adelakun, 2020). Companies such as Wizz Air and Easy Jet are the major competitors of the airline company. As a matter of fact, the consumer exchanging cost in order to modify to an additional brand or company is little increasing the fierce opposition in the industry. Remarkably, with the escalating number of rivals might be able to open up and pretense elevated threats to Ryanair.

Threat of entry

The threat of new entrants is quite low according to the fact of restricted government laws and legislation process. It is indeed obvious that the aviation industry has been measured as an expensive industry. Making available a particular space for the airport and therefore designing is quite expensive specifically for the new entrants. Furthermore, the new entrants might also have to encounter several problematic situations regarding the fact of accessing in terms of the distribution procedure. Domestic and worldwide airports might not be competent to offer a supplementary slot in terms of the newcomers (Saeed, 2016).

Threat of substitutes

Transportation and high-speed rail system might fall under the category of Substitutes of Ryanair. In fact, the purpose of these substitutes is to provide a comparable service and worth to the consumers that clients may prefer to switch to or not (ROTHAERMEL, 2014). Nevertheless, it has been observed widely that trains or ferries are quite problematic to decide regarding the fact of a long journey. On the other hand, traveling by plane has been able to diminish the long journey to arrive at the destination. However, Ryanair undertakes its major substitutes by offering a comparison of their low rates within the rail on their official website. Thus, the threat of substitutes is relatively small.

Devising Appropriate Strategies to Improve Competitive Edge and Market Position Based on the Outcomes –

The utilisation of Ansoff’s Matrix will assist in illustrating the marketing strategies initiated by the company in order to stay competitive in the international marketplace. The Ansoff Model has been considered as a strategic tool that facilitates marketing leaders in order to classify business expansion prospects.

Market Penetration

  • The airline company has been found to be implicated in the process of market penetration. It has been observed that Ryanair encounters some constraints due to the matter of seeking foremost market penetration.
  • The company has to face major difficulties due to its elevated range of competitors which pressurize the company to focus on decreasing the cost. As a matter of fact, the strategies and policies implemented by the airline have led it towards numerous economical downturns in recent years. This can be hampering for Ryanair for its future progression (Numano?lu, 2020).

On the other hand, the legal factors or the legislative process have been proved to be extremely hindering for the airline company in terms of enhancing its market share. It has been observed that the company almost inconveniently faces numerous difficulties regarding the fact of completion of major policies and regulations.

Product Development

  • In terms of product development, the airline company often has been seen in associating within R&D activities in order to understand the basic and rising demands of the customers for a better service. Therefore, Ryanair has been found to be engaged in strategic partnerships regarding the fact of exploration of various options in terms of product development (ROTHAERMEL, 2014). The ultimate purpose of the strategic partnerships is to permit the company to have access to the procedure of inadequate financial expansion. Ryanair has improvised its product through the process of acquiring in excess of 100 new Boeing 737-800 aircraft.
  • It has been observed that the airline company has been able to build up its services through the provision of ancillary services including travel insurance, flight changes fees, and hotel services along with car rental services.

Market Development

  • The market development strategy involves the ability to spread into the latest marketplaces. It has been observed extensively that Ryanair has a potential market in already existing airports where it does not fly to but might be able to contend with an assortment of airlines that are already functioning in such particular airports, but nonetheless its near to the ground charge is considered to be an extremely aggressive strategy to spread into new markets.


  • Diversification in terms of the latest business would engage within Ryanair in order to discover new business thoughts and alternatives to start on for purposes during the process regarding growth and expansion (Madar, 2018). The observable fact is that this expansion attempt by Ryanair might be able to pretense an assortment of confronts and confrontations from existing firms in these industries which might be able to work together against its achievement. Nevertheless, the future progression of Ryanair in finding a proper place in such area is due to the fact of airline traveler services which cannot survive on their own and requires other exterior services in order to make certain of the business progression.

Application of Models, Theories and Concepts to Assist with the Understanding and Interpretation of Strategic Directions Available to the Organisation

Application of a Range of Theories, Concepts and Models and Interpretation and Devising of Strategic Planning for the Organisation –

Porter’s generic strategy model is extremely appropriate for a business in order to investigate its competitive place through the selection of a generic strategy which proved to be beneficial in composing the following strategies:

Cost Leadership

In terms of the lost cost airline, the European aviation industry decides a range of generic strategies in order to stay competitive in the international marketplace. It has been observed the ultimate intention of low-cost airlines is to give no-frills services to the potential consumers in terms of persuading the basic demands of the customers along with obtaining a sustainable competitive advantage (Saleh, 2016). In the case of Ryanair, this particular generic strategy has been considered as chiefly dependent on cost-leadership as they seek out to motivate productivity and stipulate through chiefly lowering their cost formation. As a matter of fact, these particular airlines attain competitive benefits in excess of their competitors particularly once their standard productivity is rather than the standard abundance of other airlines along within the industry. It basically refers to the competitive advantage in terms of the low-cost airlines which is in principle dependent on the prosperity of the firm (Saleh, 2016).


In terms of the differentiation strategy, the ultimate intention of Ryanair is to provide the seats at a minimum low price and charge approximately other services such as drinks, food, and custom of toilets on the aircraft and that has been able to make it quite dissimilar within other airlines (Griffith and Roberts, 2021).

Focus strategy

The focus strategy also has been recognized as 'Niche' Strategy, which basically indicates to a particular organization which will keep a closer look on the particular region of business in order to condense pointless waste of costs and time for focusing on a meticulous segment or to focus on exacting approach (Madar, 2018). Ryanair basically focuses on the subject matter of low cost which is considered as the “Heart of the Airlines”. It is indeed true that the Aircraft fleets are being acquired which are of 11 to 17 years old and Ryanair purchase from only Boeing 737-800 and which proved to be beneficial in sustaining a closer look on the process of lack of training and convenience of accomplished staff on board (Griffith and Roberts, 2021).

Bowman’s Strategic Clock

  • Low Price and Low Added Value: The Bowman Strategy clock is the ultimate process in order to investigate the competitive position of the company in contrast to the contributions of multiple competitors (Saleh, 2016).
  • Low Price: In terms of the company, Ryanair has been able to utilise a Low-price scheme and it division its market along within the economy class travelers and those customers who are price cognisant, for them luxury doesn't matter.
  • Hybrid: In order to diminish its cost, the airline company exploits its Hybrid strategy regarding the fact of purchasing its fleets on the basis of 11 years to 17 years decreasing the cost of new fleets (Mohamed, Ndinya and Ogada, 2019).
  • Differentiation: In terms of differentiation, the airline company constantly tries to lower its pricing along with meeting the basic requirements of the customers during the time of the traveling.
  • Focused Differentiation: The Company also provides luxury seats which are considered very expensive (ROTHAERMEL, 2014).
  • Monopoly Pricing: It has been observed that there are no monopoly circumstances in terms of Ryanair and that was formerly a monopoly marketplace intended for British Airways. This has been considered as a competitive market subsequent to; Easy Jet, Ryanair, and Virgin Atlantic penetrating the market along within offering the services in an effective manner.

Production of a Strategic Management Plan that has Tangible and Tactical Strategic Priorities and Objectives –

Strategic planning of the airline company

 Ryanair has been measured widely as a company that basically falls under the category of cheapest airlines. The company has been recognised extensively for implementing a "Low-Fare" policy specifically on Southwest airlines (Negru, 2018). This Irish airline mainly functions in the area of the UK and Continental Europe along within maintain a competitive advantage by lowering the prices.


The safety procedure of the customers has always been the first priority for Ryanair. Through providing hygienic food and other medical services the company has been able to make a competitive advantage and get recognised in the global marketplace.

Structure of the Ryanair

It is quite comprehensible that Ryanair encompasses an established well-designed construction along with the purposeful heads reporting unswervingly to the CEO. It has been observed that the comparatively flat organisational structure and decentralized decision-making influence have been able to create business purpose the Ryanair’s additional competence (Prichinet, and Le Duc, 2020). As a matter of fact, most significant business units and functional heads might be able to control broadly and thus it will embrace accountability in terms of the efficiency progressing of their departments. While responsibility is separated, it has been considered as an effortless process in order to calculate the depth of functioning all through those sections (Negru, 2018).

The vision of the company

The ultimate vision of the company is to offer the customers comparatively low prices along with meeting their requirements which will facilitate the airline company in order to become the leading airline of entire Europe (Mohamed, Ndinya and Ogada, 2019).

Marketing analysis

The ultimate strategy of this airline is to provide the cheapest prices to the consumers and they will come on their own. It has been observed that Ryanair does not expend an enormous amount of money on the basis of marketing. Often, the advertisement posted by the company has been deleted or removed from the internet due to its confidentiality (Prichinet, and Le Duc, 2020). It happened because the marketing department of the company has selected some young individuals or students for advertising


In light of the findings of the previous research, it can be stated that thorough planning is vital since it allows businesses to achieve their long-term goals and desires. It's becoming more and more competitive and newcomers are the biggest danger to Boots' success and growth, and new entries are the biggest challenge. It is recommended that Boots concentrate on creating new and unique items in order to differentiate itself from its competitors. Even before entering a new market, it is essential that a firm thoroughly research the business climate of that new nation so that it can produce more impressive results while competing against other businesses.


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