Strategic Management Essay Example | Topics and Well Written Essays - 3000 words - 9

Strategic Management - Essay Example Ryanair is an affordable air travel service provider that gives customers the option of using a high quality air flight service for medium and short-haul across many locations across European destinations. It commenced service as a normal airliner operating out of Ireland competing with Aer Lingus in 1985.However by 1990, having suffered heavy losses and changing five chief executives. The sixth and the current incumbent Michael O’Leary decided to follow the pattern for low cost flyers set by Southwest Airlines of USA. He was right in his assessment of the market and diagnosed correctly that this was the way to survive and succeed. Ever since its inception in 1971 Southwest Airlines has been a star. It has never suffered a loss, even during the turbulent years when almost 40% of the US Airlines either applied for bankruptcy for survival or became defunct. It is a low cost/low fare carrier that depends on its low fares, short hauls and the shortest turnaround times. The fares are at least 30% below its competition, maximum flight time is 60-90 minutes between two points, and shortest ground time that is routinely 24-27 minutes between landings and takes off of an aircraft. Fundamentally the change brought about by O’Leary has transformed the company and put it in an aggressive mode. It has not only made the competition sit up but to emulate its practices. Ryanair successfully applied all the criteria that were innovatively designed and adopted by Southwest and O’Leary has no hesitation in stating that they are his ideals too. However, Ryanair has fallen short on imitating Southwest specially in the Human Relations department where they still face some issues now and then unlike Southwest where this department is handled in an exemplary manner and where the employee is King. Ryanair appears to have a confrontist attitude and is in always some conflict or the other be it with authorities;