Ryanair: Performance Objectives

Ryanair Performance ObjectivesRyanairs quin performance objectives to maintain or ultimately adjoin Ryanairs warlikeness, it is useful to analyse its operations with the help of five performance objectivesQuality In the long run, even the most competitive footing structure will non attract clients if the quality of the assistant passing gameed is be pocket-sized a certain standard. This includes maintenance, efficient booking and baggage handling, reliability, punctuality, and interaction with Ryanair staff.Speed The argonas where speed matters most for Ryanair atomic number 18 turnaround time of aircrafts, reservations, luggage handling, and aircraft maintenance, all of which have a direct impact on comprises. Although Ryanair has apply many steps to increase speed, it also depends on service providers that are not directly under its control.Dependability This matchs very favourably with competitors, where punctuality is similar, but the missed bag/passenger ratio is o rders of magnitude higher. This exquisite record has to do with the fact that Ryanair offers only sign-to-point flights, thereby eliminating the risk of luggage mismanagement during connecting flights.Flexibility Customers have a high degree of tractableness in choosing the level of service, since only the basic airfare is charged and any surplus function must be paid for. Increasing flexibility for the customer would mean offering additional options. From Ryanairs perspective, flexibility comes with diversification of supplementary services on the adept hand, and, with increasing market strength, the ability to negotiate alternatives for motley service sectors, such as maintenance agreements, outsourced functions, etc.Cost The burn down price is one of the direct costs for any airline operations. there are enormous fluctuations, and, unlike its competitors, Ryanair has committed to a policy of not imposing fuel surcharges. Therefore, the fuel price become fluctuations and Ryanair takes consider of that action. As a result, Ryanair reported its first annual loss in 2009 when anele prices were at a record high. (BBC Online News, 21 June 2009)International CompetitionRyanair is one of the most successful low cost carriers in Europe. The phenomenon strategy for long-term sustainable which Ryanair has developed from Southwest airlines is cut-cost to gain in high juicy in market share. According to Gillen and Lall (2004) stated that Ryanair has taken step throw out of Southwest operational, therefore, Ryanair has strongly and clearly business office regarding to the airline does not offer any frills such as, no providing service, no ticket, no connection, no voyage agents, no frequent flyer programme as well as food and beverages are sell on board. However, Ryanair can keep the cost low and gain more than profit by setting the cheaper fares to customer regarding to increase the specie flow. In addition, according to the economic crisis and the fue l price has been increased, it effected to all airlines industry. However, it seems not really effected to Ryanair. ground on that, in 2009, Ryanair has aggressively discounted fares to increase the pressure on its competitors and increase the cash flow. (Euromonitor International 2010) Neverthe slight, Ryanair has been very tactical and acted very quickly to get proceeds out of the competitors. Moreover, the competitors of Ryanair, for example, in Western Europe are mostly the enrolment airlines such as, Lufthansa, Air France-KLM Group, British Airways, and Easyjet. Therefore, Easyjet is the direct competitor of Ryanair. Furthermore, the competitors in eastern Europe are mainly budget airlines such as, Wizz Air (Hungarian airlines) as well as the schedule airlines Aeroflot (Russian airlines), LOT (Polish airlines) and, CSA (Czech airlines). In this case, Ryanair claim to increase the traffic to compete with cometitors by operate more routes. However, the competitive payoff of Ryanair that helped Ryanair to maximine growth which require the location advantage by using the supplemental aerodromes that located not far away from the city. For example, Gillen and Lall (2004) stated that at Hahn drome near Frankfurt, the number of passengers increased from 450,000 in 2001 to 1.5 million in 2002, repayable to Ryanair serving that airport. Easyjet tend to have the same direction, however, Ryanair negotiation with secondary airports, a lot located in economically depressed areas, Ryanair bargained hard for low fees compare to EasyJet. On the opposite hand, Gillen and Lall (2004) stated that EasyJet is not entirely secondary airport based and so it does seek to attract some business customers. base on that, Easyjet has more cost regarding to the airport fees. In addition, one of the advantages of Ryanair is speedy turnaround time than other airlines. According to (Barret 2004) stated that the shorter turnaround times permit more journeys per plane which, co upled with the higher seat assiduousness of Ryanair planes, generate lower seat mile costs. Based on that, Ryanair planes are mostly flying and it savings more cost of the airport fees in term of the landing charge. According to Ryanair report (2010), Ryanair received award of existence punctual and less in baggage lost Based on the short-haul point to point routing, hence, (Barret 2004) stated that the punctuality performance of Ryanair is high, therefore, the simple point to point is not delayed the passenger and check-in is quicker because is less complex than an interline one. According to table 1, staff of Ryanairs were non union, (Vlaar et al. 2005) stated that the consequence is pliable workforces enable low-cost airlines to fly and support each aircraft with only cardinal workers, compared to the employees that required by traditional network carrier. For instant, Ryanair focus on the impish cost control measures. Pilots and cabin crew received lower salaries than other industries, however, the employees received significant variable compensation such as, the commissions on on-board sales. (ibid) send back 1. Some distinctive features of Ryanairs business modelChoice Consequence vicarious airports Low airport feesLowest ticket price Large glitzLow commissions to travel agents Low costStandardized fleet of 737s talk terms power with suppliersSingle-class Economies of scaleHigh-powered incentives Attract combative teamNo meal Faster turnaroundNothing free Additional taxSpartan headquatres Low fixed costNo unions Flexibility in rostering staffSource Casadesus-Masanell R, and Ricart J E, 2010 cited from Strategy to Business Models to TacticsAs a result, (Vlaar et al. 2005) think that Ryanairs business model is a simple product, low operating cost, and differential positioning which they focused on leisure, VFS (visiting friends and relative). Based on that, the value proposition is good fit with these customer segments. More importantly , (Casadesus-Masanell and Ricart 2010) concluded that Ryanair plan of action create a unique and valuable position by engaging in a new set of activities. Based on that, Ryanair found the way to operate the play along more faculty amongst the competitors by create the value for their stakeholders.International emerging marketsThe Ansoff product-market expansion power system is useful for Ryanair to visualise and identify market opportunities. Therefore, Ryanair establishing a partnership with Wizz Air, it helps company penetrate non-EU markets, synergies can benefit in both party. Regarding to, the market organic evolution Ryanair striving to target in business travellers by offering them more benefits such as refundable tickets in terms of more flexible. Moreover, Ryanair consider of the product development by plan to open the new route to US for long-haul, with flight tickets starting at EUR10 according to the Open Skies Agreement amidst the EU and the US. Based on that, Ryan air could attract more young generation travellers who has low income but would love to experience in Hollywood place.