Preview

Ryan Air Case Study

Powerful Essays
Open Document
Open Document
4060 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ryan Air Case Study
Ryan Air Case Study
Strategic Management

Names:

Table of Contents

Step 1: Identifying the positioning questions
1.1 Summary of the case pg. 2
1.2 Main Questions & Problems pg. 3
1.3 How was the strategy developed? pg. 3
Step 2: Gathering & analyzing the facts
2.1 Ryan Air Environment Analyses pg. 3
2.2 Ryan Air Strategic Capability Analyses pg. 5
2.4 Ryan Air Competitive Strategy & Business Model Analysis pg. 5
2.5 Ryan Air Stakeholder expectations & purposes Analysis pg. 7
2.6 Ryan Air Economics Analysis pg. 9
2.7 SWOT Analysis pg.10
Step 3: Alternative Courses of Action
3.1 Alternative courses of action pg.11
3.2 Evaluation considering mission & long term goals pg.12
3.3 Advantages & Disadvantages pg.13
Step 4: Decision & Reasoning
4.1 Chosen course of action pg.14
4.2 Sustainability, Acceptability & Feasibility pg.15
Step 5: Implementation
5.1 Action Plan pg.17
6. References pg.19

Step 1: Identifying the positioning questions
1.1 Summary of the case
Ryan Air is an airline company which was founded in 1985 in the aim of providing passengers with scheduled air travel services on the routes between Ireland and the United Kingdom, which at the time was operated only by the airline Aer Lingus. When they started the company, the Ryan family ran it as a conventional airline, which meant that there were 2 differently priced seats offered to the passengers. Even though the company grew, the airline began to grow in the direction of the Southwest Airlines model, to become the first European provider of low cost and no frills airline.
Ryan airs strategy was born form its objective of maintaining “its position as Europes leading low cost airline, operating frequent point to point short haul flights, mainly out of regional and secondary airports […] designed to stimulate demand, particularly from budget conscious leisure and business travelers, who might otherwise have used alternative



References: About Us. (n.d.). Ryanair and the Environment. Retrieved April 2, 2014, from http://www.ryanair.com/en/about/ryanair-and-the-environment Assen, M. v., Berg, G. V., Pietersma, P., & Have, S. t. (2009). Key management models: the 60+ models every manager needs to know (2nd ed.). Harlow, England: Financial Times/Prentice Hall. Johnson, G., Scholes, K., & Whittington, R. (2011). Exploring strategy (9th ed.). Harlow: Financial Times Prentice Hall. O 'Sullivan, D. (n.d.). Defining Objectives. Sagepub. Retrieved April 1, 2014, from http://www.sagepub.com/upm-data/23139_Chapter_5.pdf Ryanair reprimanded for 'misleading ' advertisements. (2010, July 14). BBC News. Retrieved April 2, 2014, from http://www.bbc.co.uk/news/10626652 Ryanair told to cut Aer Lingus stake by Competition Commission. (n.d.). BBC News. Retrieved April 2, 2014, from http://www.bbc.com/news/business-23860836

You May Also Find These Documents Helpful

  • Good Essays

    Ryan Air Writeup

    • 583 Words
    • 3 Pages

    To make money at that fare I would expect that they have a distinctive cost advantage over the current operators, say British Airways and Aer Lingus. Being a small operator I would expect some efficiencies and reduced costs that the other two airlines cannot realize. I would expect Ryan Air to lease its plane as opposed to buying it (as they only have one route, no scale efficiencies from owning…

    • 583 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Ryanair case

    • 326 Words
    • 2 Pages

    The main strategy for Ryanair is its low cost structure. Ryanair undercut its Dublin-London service at I£98. The reason Ryanair was able to offer low fares was because they only use small aircraft and fly to an airport with lower fees…

    • 326 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The current market is a stabilized market, with a duopoly amongst the two strong players: British Airways and Aer Lingus. Both airlines established routes in the lucrative Dublin - London markets and tap on profits from this route to finance their other less profitable operations. The demand for air travel between the Dublin and London has probably stabilized over the 10 years from the stagnant market share of half million air travelers. Ryanair's strategy is focused on breaking this duopoly with the introduction of Ryanair's low costs and efficient service on the same route. The strategy entails to achieve the following:…

    • 533 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Although according to the figures Ryanair is the “World’s favourite” low cost airline, in the minds of their customers this is not always the case.…

    • 4186 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Ryanair Case Study

    • 2763 Words
    • 12 Pages

    What is your assessment of Ryanair’s launch strategy? Is it sensible? Will it succeed? We believe that Ryanair’s launch strategy was successful and we will justify this statement with information that was provided in the Ryanair’s case. To begin with, Ryanair airline was not that hard to establish for Cathal and Declan Ryan because of the capital that Ryanair’s founders managed to get from their father, Tony Ryan, who was a co-founder of Guinness Peat Aviation, which was the largest aircraft leasing company. This was a very good start for the brothers because they did not need to search for investors or convince banks to give them loans, which would probably be very difficult because of the amount of money they needed. Furthermore, we believe that those two brothers were the right persons to make such a big step and establish an airline company because as it was mentioned in the case their father worked in airline industry for a long time, so he had huge experience and he was able to share it with his sons and advise them on certain steps and help them to explore the market from different kinds of perspectives. Another smart choice of them was to start their business with a small plane that had only fourteen seats. We believe it was clever because they spotted the weakness of their competitors in having utility rates of just around two thirds. By having small aircrafts they increased the likelihood of being fully booked and therefore more profitable. Further, they did not spent a lot of money and other resources for the first step just in case it would not work later on and that they would not have huge loses at the very beginning. Also their first plane started to operate between Waterford (southeast of Ireland) and London Gatwick airports and here you can notice that they have chosen secondary airports to operate because we assume they wanted to reduce their cost by going to less crowded airports to save…

    • 2763 Words
    • 12 Pages
    Good Essays
  • Good Essays

    Cost and British Airways

    • 1211 Words
    • 4 Pages

    In 1986, the Ryan siblings are getting ready to start competing against British Airways and Aer Lingus on the Dublin-London route. This route was one of the most traveled air routes inEurope, which meant that Ryanair was taking a big risk by deciding to enter this market. At the moment the airline passenger market was a complex one, since the governments would highly control it. Additionally, the airline industry has high fixed costs, which was something that Ryanair needed to take into account if the company wanted to face its already experienced competitors. However the Ryan brothers knew that it was important to fly this route, and so they decided to follow an aggressive strategy: sell cheaper Dublin-London tickets (PRICE). The problem with this strategy was that they did not highly differentiate from their competitors, and as a result a “price war” took place. By 1989 prices were as low as 70 pounds, and even though Ryanair started flying other routes, by 1991 it seemed that bankruptcy was around the corner for the airline.…

    • 1211 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    SWOT analysis of Ryanair

    • 2400 Words
    • 8 Pages

    Contents1. Background22. Theoretical framework33. SWOT analysis of Ryanair44. Challenges and recommendations for the future75. References81. BackgroundThe subject of this report is Ryanair - the first Low Cost Carrier in Europe - which was founded in 1985 (Ryanair.com History 2008). The firm began operations with a staff of 25 and a single 15-seat airplane flying between Waterford and London. In 1986 Ryanair received permission to begin flying four flights a day on the Dublin-London route. In doing so, they challenged the monopoly of British Airways and Aer Lingus with fares that were much lower. Ryanair's strategy was to offer simple, low-cost fairs and exemplary customer service. During the later part of the 80s Ryanair continued to compete vigorously with British Airways and Aer Lingus while adding additional routes and airplanes (Creaton 2004). In 1990 Ryanair suffered a £20 million loss and was forced to completely restructure. A new CEO - Michael O'Leary - was charged with making the airline profitable. He visited the USA to study the 'low fares/no frills' model being used by Southwest Airlines. O'Leary quickly decided that the key to low fares was to implement quick turn-around times for aircraft, "no frills", and no business class, as well as operating a single model of aircraft (Ryanair About Us n.d.). Despite the decline in overall airline traffic, Ryanair made a profit of £293,000 for the year and carried 651,000 passengers.…

    • 2400 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    In this report, the strategic analysis on Ryanair will be discussed further, including the SWOT, PESTEL and Porter’s Five Forces Analysis. Furthermore, the central problems identified and recommended solutions to the problems will be would be stated and examined.…

    • 2063 Words
    • 9 Pages
    Better Essays
  • Best Essays

    Csr Ryanair

    • 3593 Words
    • 15 Pages

    Bowman, C and Faulkner, D. (1995). "The essence of competitive strategy". 1st Edition. Prentice: Hall.…

    • 3593 Words
    • 15 Pages
    Best Essays
  • Satisfactory Essays

    Strategy of Ryan air is Marketing- strong branding and reputation of product. Ryanair's aggressive pricing strategy makes them different from other Airline companies in Europe. Low costing of tickets due to airport operator deals. A biggest advantage of Ryanair is Reputation as "First Biggest Budget Airline in Europe's". Main strength given to Ryanair by media through free footage to people from various Controversial issues created in flight and due to the tough decision made by chief executive Michael O'Leary. Ryanair collects enormous profit from Ancillary revenues from on-board and online gambling, an in-flight mobile phone service, including non-flight scheduled services and also from Ryanair's website. On time delivery which help customer to reach at their target. In future Ryanair planning to purchase new aircraft with huge capacity for sitting which will generates lots of income as well as new routes for reaching destination much quicker. Ryanair control the fuel and noise emission by purchasing new Environmentally-friendly aircraft. (Sascha Mayer, 2007). If any delays due to climatic condition or technical quandary, then Ryan air Customer Service Desk (CSD) prompt refund is provided to customer.…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ryanair was launched at a time that did not seem highly favorable to the airline industry. As a matter of facts, in 1986, the market was still recovering from the aftermaths of the OPEC oil embargo and the 1979’s oil crisis which led to an important increase in the jet oil prices, along with a recession that cut demand for air travel and thus gave an impulse to the aircrafts’ cheaper substitutes, such as trains and ferries. Despite that high bargaining power of suppliers and threat of substitution products that made the external environment unfavorable, the Ryan brothers’ wish to launch their airline did not diminish. The company’s first service was launched in 1985 between the southeastern Irish city of Waterford and Gatwick Airport, located on the outskirts of London. One year later, the newborn company started operating between Dublin and the British capital. Two majors Airlines operated on this latter route at that time: British Airways and Aer Lingus, the Irish flag-carrier company. Moreover, some strong US airlines reached out for new routes into Europe after the deregulation of the domestic US airline industry, which made the pressure of competitors even more intense in the airline industry. Last but not least, charter flights, which thrived during the 1960’s to bypass the European regulations and to tap the increasing demand for leisure travel, were transporting 60% of all European passengers by the mid-1980’s.…

    • 1405 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Dogfight over Europe

    • 717 Words
    • 3 Pages

    As the case states, the environment in which they launched their business was first shaped by Europe’s national governments. The individual governments controlled the prices of the fares and the domestic fares were intentionally kept high to subsidize international service. As time went on, free competition was eventually permitted, thus creating a great opportunity in the industry. Fare prices plummeted as the airlines competed for customers and market share. This is a perfect environment to enter the industry if you are able to compete with the bigger businesses. Since the Ryan brothers had money from their father, they were able to offer a low price from the beginning and didn’t have to worry as much about covering their costs. This allowed them to be competitive. They planned to offer the same full service flights at a fraction of the cost of the other airlines and without the money from their father they might not be able to cover all their operating expenses. They also noticed that some of the fares from the other airlines were so high that many people were opting to use other means of transportation. If the brothers could attract these customers with their low prices they could make a great deal of money very quickly as well.…

    • 717 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Dogfight over Europe

    • 723 Words
    • 3 Pages

    Ryanair’s strategy to focus on customers’ satisfaction and to provide more affordable, no frills ticket was a great move because flight tickets it was a budding airlines and it was important to take small steps to develop its reputation in the industry.…

    • 723 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Nokia Sales

    • 479 Words
    • 4 Pages

    Based on the resources Ryanair can develop its core competencies on which a Ryanair can have a competitive advantage over its rivals. In order to figure out whether the resources can be translated into competitive advantage or not for Ryanair, the VRIO model can be deployed.…

    • 479 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Financial planning

    • 7872 Words
    • 32 Pages

    References: Atrill, P., and McLaney, E. (2009). Management Accounting for Decision Makers. (6th Edn). Essex: Pearson Education Limited.…

    • 7872 Words
    • 32 Pages
    Good Essays