Evaluation of Challenges Faced as it Implements Strategic Change
Among the strategic options that we have discussed in the above section, the offering of business class would be the most highly recommended option, using the Ansoff’s matrix (Curry et al, 2006) to evaluate would mean taking up product development. This is achieved by using the current existing market of business travellers that are already travelling on budget airlines (Mason, 2000), while developing new business class product to serve the market. Ryanair does have the strategic fit of resources for the implementation of this strategic option, while only the physical investments are into the reconfiguration of the aircraft. The recommended composition of classes would be that business class consumes less than 20% of the plane haul, which was the cause of failure for Debonair (BBC, 1999).
Business class passengers must have the privilege in boarding the plane first, EasyJet has introduce the Speedy Boarding Plus which give the premium paid customer the ability to check-in at a dedicate counter and first onto the flight (Frary, 2007). Seats arrangement is an issue that Ryanair must solve, if the company is to avoid the situation like what Rudd (2008) experienced in embarrassment during his priority boarding of EasyJet flight. The solution would be to enable their strength in information system, when their customers book flight online seats allocation must available and generated prior the schedule flight. An expansion to the information system is the ability to provide a frequent flier schemes, Mason (2000) have indicates that high profile corporate travellers are influenced less on the price elasticity if an effective frequent flier scheme has been implemented, which Ryanair raw model Southwest have also drown upon providing (Strategic Direction, 2006a). Frills or in-flight service are unavoidable to satisfy the customers of this level, but Michael O’Leary going as far as providing blowjobs (Ryanair, 2008b) in business class is unnecessary and nonprofessional. Throughout the discussion, context mention were all rated significantly higher by business travellers whom using full-service airlines (Mason, 2001). Given these suggestions would enable corporate travellers to make use of newly business class offering.
The above paragraph has proven that the Chief Executive himself is an expert in marketing, which was well confirmed by Huxley (2009) finding. But attracting luxurious business travellers, a well elegance press tactics should be made as an approach for its marketing in order success in this market segmentation. O’Leary hardball strategy (Strategic Direction, 2007) in the future of implementing the selected strategic option would prone to be an obstacle to success, and change of a softer media coverage leadership style is indispensable.
Apart to barrier of change, differentiation move from focus strategy (Akan et al, 2006) be among the hardest to overcome, which cause to change in the company’s core competency. Ryanair must learn how to continue truly innovate new product offering to create sustainability compelling advantage to survive on the aviation landscape, other than trying to cut costs and compete on price.