Case Study

Ryanair strategic positioning (B): Always getting better

13 pages
March 2017
Reference: IMD-7-1873

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.

Learning Objective
  • Understanding customer centricity
  • Understanding strategic alignment
  • Understanding whether and how successful incumbents can embrace change.
  • Understanding how incumbents can best embrace digitalization
Keywords
Operations, Positioning, Transformation, Customer Centricity, Disruption, Strategic Innovation
Settings
Europe, Republic of Ireland
Ryanair, Travel and Leisure, Airlines and Aviation
2013–2016
Type
Field Research
Copyright
© 2017
Available Languages
English
Related material
Teaching note, Video
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