While
reading the Southwest Case study and the article “Types of Strategy: Which fits
your business?” where it is being analyzed the low-cost leadership strategy, it
immediately came to my mind Ryanair, a European low cost airline. We could say
that Ryanair is the European Southwest but with one main difference. Ryanair
has strategically decide to follow a strict low cost leadership strategy which
strategically ignore focus on anything else like culture, customer service or
corporate responsibility. Thus, Ryanair can claim that it has the lowest fares
in the European market, around 50% less than its competitors, but it is one of
the most infamous European airlines. Some of the negative publicity in the
media includes troubled employment relationships, very poor customer service,
unfair charges for services like the use of credit card and even safety
concerns.
Can a strategy like this remain sustainable in the
future and what is the border of the ethical side of a low cost leadership strategy?
Following
is the link of the article “Ryanair: the spectacle of business without trust”
by Zoe Williams posted in Guardian, stating Ryanair’s unpleasant side:
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