By 2013, after over near 30 years, Ryanair has become the largest airline in Europe in terms of passengers flown internationally. It outperformed its low cost rivals on most operational dimensions. It was unambiguously positioned as the lowest cost of the low cost airlines. Its success, however, came at a price. Ryanair was far from loved. Its operational model, which enabled such low cost flying, had as a side effect service that was seen as far below industry norms. In 2013 its outspoken CEO, Michael O’Leary, came under increasing pressure to tone down the macho image he had cultivated and enhance service levels. To do this he would need to adapt the successful operational model. The A case asks whether such an adaptation make sense. The B case documents the evolution and implementation of Ryanair’s response, a change program called “ALWAYS GETTING BETTER” (AGB). AGB encompasses a digitalization program that chief marketing officer Kenny Jacobs believes can enable Ryanair to become the “Amazon of Travel in Europe.” The B case asks whether this is a realistic ambition.
The case allows for an exposition of several related strategic concepts: Business system alignment, strategic positioning, market evolution (and response), customer centricity and innovation. Four specific learning objectives are particularly well addressed;
Understanding customer centricity
Understanding strategic alignment
Understanding whether and how successful incumbents can embrace change.
Understanding how incumbents can best embrace digitalization
2nd Floor, Toranomon Jitsugyokaikan, 1-1-20 Toranomon, Minato-ku, Tokyo 105-0001 Japan Tel +81 3 3503 6621 Fax +81 3 3501 0550 Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information, please contact IMD's Information Center Copyrights Services.
IMD is a top-ranked business school. According to the Financial Times, IMD ranks first in executive education and in open programs worldwide.
We are the experts in developing global leaders through high-impact executive education.
IMD provides leadership training such as: Executive MBA (EMBA), Business Development, Executive Coaching, Finance Courses and many more. To find articles related to executive education, please visit one of the following top searches: