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Business Strategies

Name

Institution

Business Strategies

1. Ryan Air

Ryan Air is one of the most successful budget airlines in Europe and this cost leadership is achieved through components of its value chain. Beginning with inbound logistics, Ryan Air has been able to achieve cost reduction and effectiveness through large Boeing orders which guarantee them of bulk discounts. Additionally, Ryan Air has managed to engage in low cost airport agreements. In terms of operations, Ryan Air features limited crews in minimizing Human Resource costs and achieves fuel efficiency through use of newer airplanes. On outbound logistics, Ryan Air avoids luxuries in their planes. This airline also hires career entry personnel who serve multiple roles, saving on numerous job posts. When it comes to services, Ryan Air also sells food onboard and also sells lottery tickets.

However, the cost leadership strategy goes along with certain risks which include competitive interplay caused by new firms within the industry (Datta, 2010). For instance Ryan Air faces the risk of more budget airlines such as Southwest and Easy Jet airlines (Wendover, 2016). These airlines feature technological breakthroughs as well as cause a substitution effect. Furthermore, Ryan Air also faces the risk of diminishing returns due to the increasing price of inputs such as the jet fuel prices it uses on its many routes daily.

1. Yakima-Olympia

Referring to the logging dilemma case and 9M function framework, the alternative technology applies certain functional strategies. On the part of customers, Yakima-Olympia applies the functional strategy of using high grade materials to make quality products for customer satisfaction (Datta, 2010). Regarding the employees, the alternative technology conserves manpower and fosters safe and clean air-conditioned machines. Thirdly, Yakima-Olympia has the willingness to offer long run contract guarantees to suppliers. Additionally, Yakima-Olympia also applies functional strategy in managing growth in the aspect of operating whereby the alternative technology eliminates use of chainsaws reducing the processes that logs have to through before getting mills. In relation to managing resources, Yakima-Olympia also uses the functional strategy of technology in achieving precision is log felling.

1. Strategies

Yakima-Olympia uses the business strategy of differentiation through the cutting of logs that are specific to the processing needs. Considering differentiation as the business strategy, the alternative technology is most appropriate due to precise tree cutting that will ensure optimal percentage in meeting differentiation needs. In further ensuring use of appropriate technology, Yakima-Olympia may use the following alternatives:

• Offering credit guarantees for loggers through long-term contractual agreements.

• Proportionally increasing returns from the alternative technology as an incentive to loggers.

• Transferring the costs incurred for damaged trees, stems and limbs cut badly to loggers in enhancing precision only attainable through alternative technology.

References

Datta, Y. (2010). A critique of Porter's cost leadership and differentiation strategies. Chinese Business Review, 9(4), 37.

Wendover, (2016). YouTube. How Budget Airlines Work. Retrieved 4 July 2017, from https://www.youtube.com/watch?v=069y1MpOkQY