Capacity management is a very important element in an organisation since ensures that information technology capacity is up-to-date thereby ensuring that business requirements are meet in a cost effective manner. Normally, capacity management usually comprises of at least three processes namely: service capacity management; business capacity management and resource capacity management. (Lowson, 2003)

This paper discusses British airways and Ryan Air where it will compare and contract various similarities and differences that are used by the two companies to achieve their competitive advantages. It will discuss the various strategies that have been utilized by the company to ensure that their services continue to prevail in the ever growing competitive market.

British Airways has dominate the European market at it happens to one of the largest airline in the United Kingdom and the third leading airline in Europe. The airline being one of the oldest passengers and cargo carrier in the world is very popular for its efficient and cheaper rates in terms of fare charges. (Martyn, 2000)

Ryan Air one the other hand is another airline that has dominated the European market although it is smaller in operation and asset base as compared to the British Airways. It is regarded as one of the world's successful airline in the world due to it popularity in charging affordable fares rates for their flights. Although most of its operations are in London, the Irish based Airline is headquartered in Dublin. (Creaton, 2004)

Competitive Advantages Utilized by the Airlines

Both ensure that they have carried out a feasibility study before they can launch their services in any given region. For example the airlines ensure that the best efficient services utilize the best infrastructure and due to this reason, they offer the best service in that area that has a lot of potential. (Lowson, 2003)

Organisation and management process are some of the factors that have seen the two company's' growth this far. The two companies have a well laid down structure that ensures that delegation of duties and responsibilities in done in the right path. With this, the companies operation run smoothly without interruption hence the organisation achieves their organisational goals and objectives.

Differences between the two Firms in terms of Competitive Advantages

British Airways being larger in size than Ryan Air, it has a better market structure as compared to Ryan. This because due to it size, the structural assets are also large hence they influences the company's procedures, routines and culture that this in turn determine the performance of the organisation at large. (Martyn, 2000)

British being the oldest unlike Ryan Airline that was founded in 1980's have path dependencies that were founded when the organisation began. These attributes grows together with the firm and determines its growth and development.

Capacity management ensure it work hand in hand with performance engineering when building a system. This ensures that organisational goals and objectives are achieved since the firms will ensure they utilize competitive advantages at their disposal.