Business Management & Decision Making Essay Example | Topics and Well Written Essays - 2000 words

Business Management & Decision Making - Essay Example Strategies can be complicated and the decision-making process has to consider many factors. Ryanair is one such low-cost carrier that entered the market as pioneers in the budget airline industry and adopted a classical airline business model focusing on customer service. Their strategies in different areas like market segmentation, e-relationship with customers, marketing communication, their distinction in offering or abstaining from on-board and ground services have reached them this position. Ryanair, the Dublin based carrier, started its operations in 1991 on the very successful, Southwest Airlines Low Cost Leadership Model. Like most European flights, this airline offers a point-to-point rather than hub service. It offers no frills like seat allocation, meals or frequent flyer programs (SD, 2006). It aims to turnaround flights in 25 minutes and they have the shortest routes. Ryanair’s CEO is an accountant by training but an entrepreneur by inclination and he has amply demonstrated this ability in the success of this airline (Box & Byus, 2007). He has gone against the trade unions, the government officials and the competitors but he has achieved dramatic growth and profitability in this industry. Ryanair flies only Boeing 737s and is currently facing challenges escalating fuel costs, intense competition and regulatory framework in the UK. Despite these challenges, Ryanair has been able to create its own market due to its strategic decision making process. Success in marketing can be achieved by matching the organizational capabilities with the requirements of the marketplace. This matching is based on market segmentation. Expectation based segmentation is a powerful marketing tool in the services sector because it provides knowledge for customer identification, which aids better customer service (Diaz-Martin, 2000). They can tailor their actions to suit the individual requirements. Ryanair followed the expectation based