Ryanair’s Resources and VRIO Analysis

Introduction

Question 1: The study has the main focus on identifying the distinct resources of Rynair and also has an analysis of the VRIO framework. A clear application is shown along with the framework for interpreting the information of this case and the key events as well as the statements. A well-structured format is also represented to show the effectiveness of the VRIO framework. A clear determination of the competitive advantages of the organization is also discussed in the research. Therefore the study has been focused on each of the aspects of stating the VRIO framework and shows the development of proper analysis in them.

Question 2: The research has a clear view of the requirement to analyze as well as reflect the framework. The main focus of the research is to identify the advantages as well as the foundation of the framework, which is not present in the organization. It would also have a critical analysis of the framework to determine the primary objectives and has a contribution and limitations. Though there are different examples are used in the research but the main focus is on the framework, but not on the organization, Rynair. Each of the aspects is shown with a clear view to determine the factors in detail.

Discussion

Question 1

VRIO analysis

The research is on the basis of the case study of Rynair where the VRIO analysis is been discussed. It produces a clear ability by which hostile benefits are having their possibilities. It has been seen that that different resources are there to figure it out and can be transformed into hostile benefits for Rynair and so that the framework of VRIO is deployed.

Value: It reflects the resources whether it can have their ability to dispense in meeting the requirements as well as prospects for their customers. It has a combination of government subsidies as well as a reduction in airport charges (Ariyani & Daryanto, 2018). This is the reason behind the inability of Rynair for delivering the low price and it attracts customers in millions. Rynair has its policies in making the budget for the passengers, low by making the faces chart lower than the other flights and is thus aligned in a satisfactory margin of operation (Corporate.ryanair.com, 2019).

Rareness: In the short-range budget, the business of Rynair has different subsidies for the government as well as reducing the airport charger. But on the other hand it is seen that competitors like EasyJet, most direct and strongest in this filed do not acquire much of the resources (Miethlich & Oldenburg, 2019). It makes the government subsidies of Rynair because it has its secondary roots and has the ability for making their customer attract them. It also helps the airports these are secondary and are having the responses quickly. It is requiring bringing most of the tourists to their needs and having their maximum consumption in the case of local governments. The resources are also handled transferred accordingly (Seo, Park & Choi, 2019).

Imitability: It has seen with the Rynair case and is compared along with their resources that occur a huge benefit according to the costs. The resources are hardly simulated as well as transferred as per the requirement (Vargas-Hernandez & Medrano, 2020). They lowered their operational costs by developing their aircraft that are having capability if low fuel efficiency.

Organization: The case of Rynair uses a good utilization of different capabilities and resources for delivering the lowest cost in making success. The management is becoming strong and has the effectiveness in dealing with the CEO for managing the operating strategy for making the deployment with their resources (Vargas-Hernández & Garcia, 2019). This is needed to make it success and have the competitive benefits to make it up. The staffs of the company, Rynair are also offering their employees incentives as per the work and their services (Investor.ryanair.com, 2019).

The tabular representation of the VRIO framework for Rynair is shown below for better understanding.

Competitive advantage of Rynair

There are different competitive advantages of Rynair and these are as follows:

They have their airport transportation but are limited.

There are advertisements on the airplanes.

They have their yield management and are uniformly fleet.

They are also having high productivity with a much higher level of services.

There is no pillow as well as pillows.

They also have larger penalty charges for those luggages which are overweight.

The competitive advantages of Rynair are gained in providing their customers greater value by making the priceless and also provide advantages that could help them not to charge higher prices for the transport (Togawa et al. 2018). It deals with competitive strategies in sharing the establishment in a profit as well as a sustainable position to make their determination of the industrial competition. There are different modes of competitive advantages like advantages of cost for the same products and reducing their cost. The other one is the benefits of differentiation of a unique product which is having a premium price (ryanair.com, 2020).

In order to discuss the competitive advantages of Rynair in brief, it can be described in a detailed way like,

Threshold capabilities

Threshold resources:

Employees (Cabin Crews, Pilots)

Aircraft

Equipment of office

Financial resources

Threshold competencies:

Routing point to point

Website or online booking

On-time landing as well as take-off

Abilities of competitive benefits

Unique resources:

Michael O’Leary

Management team

Core competencies:

Culture, conscious to budget

Curve of experience in research and development on designing aircraft for improving performance as well as reducing the cost of fuel.

Question 2

Analysis of VRIO framework

It has been seen that Rynair has already developed their core competence on behalf of their business which provides competitive benefits for them. The company has acquired the VRIO model to deploy them in the competitive market (Roy, 2017). According to the case study of Rynair, it has been emphasized that the VRIO analysis can be stated like:

Value: Rynair has showed their ability in emphasizing their resources to deploy the expectation for their customers. They have reduces their charges in the airport as well in combining the subsidiaries of the government. It has been done by implementing the lower price business model. They even attract more than a million customers to show interest in them (Tresna & Raharja, 2018). The source of the internet is a big advantage for Rynair's passengers to save their cost they are allowed to book their tickets to innate the commissions of the travel agents. The company has also have limited websites in nominal cost to distribute its base in making the fairs available on them. Rynair has also made its record in providing 2200 new jobs where there are highly skilled professions for aviation.

Rareness: There are different competitors like EasyJet, but are not having many resources and that is why Rynair reduces their government subsidies in order to gain more attention. It helps them to get more tourists as compared to other airlines. Rynair has lowered their operating cost in aircraft fleet in order to fulfill the expansion of their routes (Shebanova, 2018). The purchase of those aircraft has enabled their limit of costing in personal trainings storage as well as acquisition of spare parts.

Imitability: Similarly, it has been seen that Rynair is comparing with other airlines and have shown their effectiveness in transferring the resources in their business and that is been imitated (Ferri & Palazzo, 2018). From the case study, it is clearly observed that Rynair has reduces their airport costs to avoid the airport that are moreover congested and has also chosen regional as well as secondary destinations.

Organization: On the basis of the case study of Rynair, it has identified about their different resources as well as abilities in delivering the minimum cost successfully. It is done because of the effective CEO as well as the strong tem of their management department. They have shown their ability to deploy the company resources and make the business effective. By 2015, the employees of Rynair were 9934 which is much more than 2014 where in that year it was only 8992 (Sarilgan, 2016). It reflects the growth of the company in their products and traffic. They can also earn incentive as per their work. The company can have their efforts in making their environmental taxes of €540m to the government of Europe. [Refer to Appendix 1]

Advantages:

There are different benefits of VRIO framework as it can evaluate the services like financial resources, Material resources, Human resources and non- material resources that deals with Information and data.

It is been used in the business to analyze the capabilities as well as resources that can manipulate the competitive advantage (Aye & Theingi, 2019).

This approach can release the original value in terms of available resources along with the capabilities of the company by which the entity of the organization can able to develop their business further strategies as well as plans.

The other benefit of VRIO framework is that the entity of an organization can be aware of their available resources with abilities which would aid them for creating plans for future and will also surplus other direction in order to recover the deficits.

Disadvantages:

Though there are advantages of the said framework, but there are many disadvantages too which are listed below:

It is quite difficult for the smaller firms and the business which have their startups due to non availability o much resources and not having abilities to recognize any competitive advantages to sustain.

The model has not been considered due to the internal factors as they cannot determine the demand in the market in changing as well as shifting it.

It is difficult to achieve sustainability due to time and to competitive advantage in terms of foreseeable future in this framework.

Other Framework to overcome VRIO

It is seen that VRIO framework works for the well organized organization very well, though it has different aspects in adding the feature of RBV theory. The “Resource Based View” theory are generally based on the stem which have came from the concept of gaining the competitive advantage through the opposition by the use of allocating their resources of the organization, Rynair. It has been seen that Rynair ahs lowered their cost strategy in proving unique sense and has managed their continuation it provide cheapest flights and by doing the same they are even profitable situation. RBV has also performed the same analysis but their sustainable competitive benefits for Rynair have lied within their resources. Whenever, Rynair wants to acquire sustainable advantages they consequent their normal profits and the resources are also valuable. But according to the RBV theory, it has determined that the due to preliminary condition, they acquire the resources at a price and allow their economic profits and thus exists their factor market heterogeneity as well as imperfection in the market.

Conclusion

Question 1: The study has covered the distinctive resource of Rynair and has discussed about the abilities of it so that it can analyze the VRIO analyses. It also uses the framework for proper identification of the organization in regulating the competitive advantages for the same.th study has depicted the VRIO framework with proper structure so that it can well understand. From the VRIO framework it is clear that Rynair follow the strategies to maintain their business and have their efficiencies in regulating the resources for which the employees, passenger and their own business maintain a business prospect as compared to other companies.

Question 2: The second parts itself reflects the perfect analysis of the VRIO in terms of the business aspect of Rynair and have their efficiencies to show the maintenance. The passengers and the staffs of the company are well managed by Rynair which defines the strategies to get well implemented. The study aims to highlight the benefits as well as disadvantages of the VRIO framework in a general way. It also has proper analysis of the framework which evaluates the mentioned framework to get associated with other theory named RBV ("Resource Based View"). It shows the major outcomes and identifies the prospect of tits importance as limitation of VRIO framework for the organization, Rynair.