Case Study on Ryanair: Business Strategy Evaluation
Report
Ryanair
Report
Of Case Study on Ryanair: Business Strategy Evaluation
Submitted by Anthony K. Augustine
to
Rachel Sumner for MBA
Module Tutor: Business Strategy
at
Rayat London College
on
01-05-08
Word count 4,150
Title: “Live the high life!” Ryan Air is Europe’s original low fare airline and is still Europe’s largest. However, their story has not been entirely successful. Evaluate Ryan Air’s business strategy over the last decade.
“Despite a growth in passenger volumes, by the end of 1990, the company had flown through a great deal of turbulence, disposing of five chief executives, and accumulating losses of IR20m. Its fight to survive in the early 1990s saw the airline restyle itself to become Europe’s first low fares, no frills carrier…The new formula effected a turnaround in the fortunes of the company, and by 1997, the company was floated in an IPO on the Dublin Stock Exchange and on Nasdaq…In 2002, the company was admitted to the Nasdaq-100” (Johnson et al., 2005, p.834).
1.0 Introduction
When you hear the name Ryan Air two things come to mind: the no-frills airline and its flamboyant CEO, Michael O’Leary. The story of rise and glory of Ryan Air is also the story of rise and glory of its CEO.
How did Michael O’Leary transform Ryan Air, a loss-making airline to a profitable and Europe’s largest low fare airline? This report will try to answer this question. More importantly it will also analyse in detail what strategy Michael O’Leary applied to achieve this great feat. Critical evaluation of the strategy Ryan Air applied will highlight the strategy paradigm it followed based on the strategic models of Porter’s five forces. It also aims to investigate the internal environment (strengths and weaknesses) and external environment (opportunities and threats) of Ryanair in the 21st century.
This report will also take us through the challenges aviation as a whole faces in the
Ryanair
Report
Of Case Study on Ryanair: Business Strategy Evaluation
Submitted by Anthony K. Augustine
to
Rachel Sumner for MBA
Module Tutor: Business Strategy
at
Rayat London College
on
01-05-08
Word count 4,150
Title: “Live the high life!” Ryan Air is Europe’s original low fare airline and is still Europe’s largest. However, their story has not been entirely successful. Evaluate Ryan Air’s business strategy over the last decade.
“Despite a growth in passenger volumes, by the end of 1990, the company had flown through a great deal of turbulence, disposing of five chief executives, and accumulating losses of IR20m. Its fight to survive in the early 1990s saw the airline restyle itself to become Europe’s first low fares, no frills carrier…The new formula effected a turnaround in the fortunes of the company, and by 1997, the company was floated in an IPO on the Dublin Stock Exchange and on Nasdaq…In 2002, the company was admitted to the Nasdaq-100” (Johnson et al., 2005, p.834).
1.0 Introduction
When you hear the name Ryan Air two things come to mind: the no-frills airline and its flamboyant CEO, Michael O’Leary. The story of rise and glory of Ryan Air is also the story of rise and glory of its CEO.
How did Michael O’Leary transform Ryan Air, a loss-making airline to a profitable and Europe’s largest low fare airline? This report will try to answer this question. More importantly it will also analyse in detail what strategy Michael O’Leary applied to achieve this great feat. Critical evaluation of the strategy Ryan Air applied will highlight the strategy paradigm it followed based on the strategic models of Porter’s five forces. It also aims to investigate the internal environment (strengths and weaknesses) and external environment (opportunities and threats) of Ryanair in the 21st century.
This report will also take us through the challenges aviation as a whole faces in the
Bibliography: 1. Johnson, G., Scholes K. & Wittington R. 2005, Exploring Corporate Strategy, Prentice Hall, New Delhi. 2. Porter, M. E. 1980, Competitive Strategy-Technique for Analysing Industries and Competitors, The Free Press, London. 3. Kotler, P. & Armstrong, G. 2008, Principles of Marketing, Prentice Hall, New Delhi. 5. De Wit, B. & Meyer, R. 2004, Strategy Process, Content, Context, An International Perspective, Thomson. 6. Stead, W. E. & Stead, J. G., 2004, Sustainable Strategic Management, Prentice-Hall, New Delhi.