The geographic location: Ryan air has 73 operating bases, with major operations in secondary airports across airport.
This is an important valuable resource because airports which are not usual travel destinations are always potential business opportunities thus Ryanair which has bases in many primary and secondary airports has more negotiating power with these airports when discussing slots, fees terms and marketing & training support for as long as 20 years with the airports. Thus operating in secondary airports offers cost saving choices for the airline.
The policy of the airline to serve airports where they are given preferential treatment thereby neutralizing the threat of potential threat is not easily imitable and also makes the resource rare in the sense that it negates perfect competition.…show more content… liquidity. The airline made a profit of 2.5 billion dollars between 1998-2009 when most airlines worldwide have been suffering losses and closing or merged with others. Strong ancillary revenues Cheap fares is another resource of the company because more customers are attracted due to lower fares Cost consciousness of the company in maintaining low operating costs and maintenance costs is another financial resource of the firm. When compare with other airlines margins of Ryanair are higher at 28.5% which is also a key resource
The financial resources of the promoters are termed very valuable in cost intensive airline industry because that strong financial capabilities allowed the company to stay afloat, rare because of high costs involved other competitors or potential entrants cannot bear the costs, difficult to imitate because of costs involved or imperfectly imitable and non substitutable because there is no substitute to the required financial investment to enter and operate in the