Ryanair.

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From the strategic point of view I think Ryanair is the best company, because it has a unique model that makes it difficult to copy by other airlines. In recent years, numerous airlines have lost market share in favor of Ryanair. This is mainly due to the prices.

The large price difference (50-700 % more) between other airlines and Ryanair has caused a large increase in the number of users of the company to the detriment of other companies with not based on the low cost strategy. This is because air travel is not a field where the loyalty of users is high (Over 80% of passangers are spontaneous who are focused on price regardless of the name of the company. That is why by the growth of Ryanair are many companies that are trying to target your market strategy to the field of low cost (see the case of Iberia -low cost) .

And, why haven´t other companies copied the strategic model of Ryanair ?

To get prices as Ryanair all steps have to work perfectly and no departing from the established, and that a plug is out of the chain this could collapse. To begin, I would like to emphasize that the salary of workers come directly from the results of the worker in the company. So you get your workers are committed to 100 % with the benefits of the company. Another way to cut prices is to minimize the time between landing and take off (MUDA on Ryanair is infinitely inferior to other companies). By having so quantity of passengers Ryanair can reduce taxes imposed on each passenger ($ 10 for other companies and less for Ryanair) . Ryanair working on more distant airports to the big city to avoid  delays as much as possible (and therefore lost - time MUDA) and reduce cost.

Other features that reduce costs to a minimum is the purchase of the aircraft. They purchases were made in times of crisis in large quantities and price of each plane was less than half that in times of prosperity. Another way to maximize profits is to incorporate the maximum number of sites inside the plane although you miss space for the customers.

Their main form of advertising is by WOM (World of mouth), favoring the company because  the influence of people around you is much higher than another kind of ads. They Increase their benefits (They increase the number of ads in the magazine rather than reducing it costs) and they obtain more revenues by the publicity behind the seats.

But Ryanair was in problems.

The net profit of the company was reduced due to its policy of non-existent customer service, causing a major upset in each of them. That is why the president of the company has turned around 180 degrees to the company focusing on this subject. Today, Ryanair is changing according to the needs of customers, favoring comfort, changing the airpoand facilitating the possibility of flight with more luggage.

After this change, Ryanair increased its net profit by 66 % in 2014. The change has emerged effect and Ryanair is again one of the leading companies.

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