Unlocking the Customer Value Chain: How Decoupling Drives Consumer Disruption

by Thales S. Teixeira

Although my quantitative analysis didn’t include Ryanair, it’s worth noting that the airline became a disruptive powerhouse without possessing unique technologies or product innovations. Its planes and booking systems were comparable to those of other airlines, and its product, the customer experience, was arguably much worse. So how could Ryanair win in a highly competitive market with an inferior product? The company possessed something else that competitors lacked: an innovative business model. Although Ryanair initially made money much like other airlines did, it abandoned the standard approach of selling high-priced tickets to transport passengers and then earning a return after subtracting out costs. Its new business model—virtually unmatched at the time—entailed filling up planes and then acting as a monopoly retailer in the skies.