Ryanair - Strategic Position
Table of Contents
Introduction 5
Step 1: Identification of the main problem 5
1.1 Summary 5
1.2The strategic development of Ryanair 6
1.3 The main problem and resulting questions 8
Step 2: Gathering the facts 9
2.1 Environment 9
2.1.1. Macro environment 9
2.1.2 Meso environment 11
2.2 Strategic capabilities 13
2.3 Competitive strategy 14
2.3.1 Robustness 14
2.3.2 Cost efficiency 15
2.4 Economical information 16
2.5 Expectations and purposes 18
2.5.1 Stakeholders 18
2.6 Overview derived facts: SWOT 20
Step 3: Alternative courses of action 21
Even though there is no official mission and long term goal stated by Ryanair, Michael O’Leary’s broad direction, communicated in public statements, is concerned with the continuity of being the largest no frills carrier in the European airline industry. Which strategic choices could be made to accomplish this mission and result in maintenance of the leadership is pointed out in three suggestions for courses of action based on the TOWS matrix. 22
3.1 Course of action 1: Market expansion and penetration in Eastern Europe 22
3.2 Course of action 2: Aggressive competition 22
3.3 Course of action3: E-business 23
Step 4: The Decision and reasoning: 24
- Market expansion and penetration in Eastern Europe – 24
Conclusion 25
Reference list 26
Graphs 27
Introduction
Ryanair was Europe’s original low fares airline and is still Europe’s largest low fares carrier. In the current year Ryanair will carry over 35 million passengers on 346 low fare routes across 24 countries. These impressive figures are a result of the holistic implementation of a cost-oriented business approach and efficient operations. The following paper highlights Ryanair’s low fares business model, its strategy and operations and moreover identifies potential strategic choices maintaining the company’s success within the next 5 years.
In order to get an insight into the subject the paper starts with a brief summary of Ryanair’s history and moreover focuses on the
Introduction 5
Step 1: Identification of the main problem 5
1.1 Summary 5
1.2The strategic development of Ryanair 6
1.3 The main problem and resulting questions 8
Step 2: Gathering the facts 9
2.1 Environment 9
2.1.1. Macro environment 9
2.1.2 Meso environment 11
2.2 Strategic capabilities 13
2.3 Competitive strategy 14
2.3.1 Robustness 14
2.3.2 Cost efficiency 15
2.4 Economical information 16
2.5 Expectations and purposes 18
2.5.1 Stakeholders 18
2.6 Overview derived facts: SWOT 20
Step 3: Alternative courses of action 21
Even though there is no official mission and long term goal stated by Ryanair, Michael O’Leary’s broad direction, communicated in public statements, is concerned with the continuity of being the largest no frills carrier in the European airline industry. Which strategic choices could be made to accomplish this mission and result in maintenance of the leadership is pointed out in three suggestions for courses of action based on the TOWS matrix. 22
3.1 Course of action 1: Market expansion and penetration in Eastern Europe 22
3.2 Course of action 2: Aggressive competition 22
3.3 Course of action3: E-business 23
Step 4: The Decision and reasoning: 24
- Market expansion and penetration in Eastern Europe – 24
Conclusion 25
Reference list 26
Graphs 27
Introduction
Ryanair was Europe’s original low fares airline and is still Europe’s largest low fares carrier. In the current year Ryanair will carry over 35 million passengers on 346 low fare routes across 24 countries. These impressive figures are a result of the holistic implementation of a cost-oriented business approach and efficient operations. The following paper highlights Ryanair’s low fares business model, its strategy and operations and moreover identifies potential strategic choices maintaining the company’s success within the next 5 years.
In order to get an insight into the subject the paper starts with a brief summary of Ryanair’s history and moreover focuses on the