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:
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| Cost |
| Differentiation |
Sustenance of competitive advantage for:
- 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.
- 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.
- 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 & Leadership, 39(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.
