STRATEGIC STRONGPOINT STRATEGIC WEAKPOINT

The strategic strong point for Ryan Air is its The strategic weak point of ryan air is its
unique business model of ticket booking. use of predicative statistical analysis as it is
The model of overbooking has been one of not always correct and as a result of which
the main reasons why the company has not the company has to take up the burden of
gone under the bridge like its competitors compensation to the passengers who are
and has sustained itself. The airline industry being bumped off and with the industry
is an extremely volatile industry, where the already being so cut throat, an additional
fuels costs can can up at any point of time. burden of vouchers as a medium of
The passengers rates can also fall for compensation is something that makes the
various reasons. Among these problem, the company bleed financially.
survival of an airplane company becomes
extremely difficult. Ryan air has employed
this overbooking technique and by this they
are able to make a profit because using a
model of predicative statistical analysis
they are able to guess to great extent the
number of no-shows. Thus, this ensures a
double payment for a single seat. Also it is
rare that somebody gets bumped off and if
they do they are also provided with a seat
on another flight and are also provided with
vouchers as a compensation so that there is
no problem.