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Strategy Analysis: Ryan Air, BMW and Rolls Royce

Strategy Analysis: Ryan Air, BMW and Rolls Royce

Competitive positioning analysis of Ryan Air, BMW and Rolls Royce

Factor Ryan Air BMW Rolls Royce
Cost of product/service Low High Slightly lower than BMW
Service/product positioning Excellent services Luxurious services Luxurious services
Differentiation level Intermediate High High
Tailored positioning low High Intermediate

 

Samson and Singh (2008) argue that BMW and Rolls Royce use differentiation strategy. Ryan Air exploits both the cost and differentiation strategies (Mennen, 2010). Such inferences position the three companies in the porter’s generic strategy as shown below:

 

Ryan Air
Competitive scope
Broad
Rolls Royce
BMW
Narrow
 
Cost
Differentiation

 

Sustenance of competitive advantage for:

  1. BMW

According to Avery and Bergsteiner (2011), the BMW exploits three factors to ensure sustainable competitiveness. These factors include flexible business model, use of solutions that are creative and leadership that is sustainable. The flexibility of the business model allows the company to adjust its working schedule depending on the demand. Creative initiatives help the company to develop solutions that are consistent with the company’s productivity. BMW Company has been operating in agreement with honeybee principles for years.

  1. Rolls Royce

The company ensures sustainable market competitiveness through exploitation of three strategies. These strategies include customer-centric, ensuring profitable growth and through innovation (Rolls Royce Holdings Plc., 2014). The company identifies customers as the primary stakeholders. The company also ensures continued innovation through the incorporation of technology in their products.

  1. Ryan Air

Mennen (2010) argues that Ryan Air aims to ensure continued growth and competitive advantage through the provision of superior value for the customers. Moreover, the company encourages innovation to promote the development of new routes and mechanisms of entering into new markets (O’Higgins, 2007).

 

 

References

Avery, G. C., & Bergsteiner, H. (2011). How BMW successfully practices sustainable leadership principles. Strategy & Leadership39(6), 11-18.

Mennen, M. (2010). An Analysis of Ryanair’s Corporate Strategy. GRIN Verlag.

O’Higgins, E. (2007). Ryanair: The Low Fares Airline. University College Dublin, Republic of Ireland.

Rolls Royce Holdings Plc., (2014). Innovation and Technology. Author. Retrieved from http://ar.rolls-royce.com/2014/assets/pdf/RR_Strategy.pdf

Samson, D., & Singh, P. J. (2008). Operations management: An integrated approach. Cambridge University Press.

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