RyanAir Strategy Assignment
Dublin Institute of Technology
Master of Science in Business and Entrepreneurship
Assignment 1
Business Strategy and Creativity
Case Study of Ryanair
Submitted by Prasanna Pavuluri
Student Number: D14124072
Date of Submission: 28 November 2014
Table of Contents
No table of contents entries found.
(1)Introduction
Presently low-cost has airways transformed the airlines industry. More and more consumers prefer lesser prices over luxuries. In 1970s United States domestic airline company named southwest introduced the low-cost business model. Many airlines across the globe like AirAsia and SpiceJet started following the low-cost model. Ryanair was one of the few airlines in Europe to adopt the low-cost model. In 1990 Ryanair suffered a £20 million loss and had to entirely reorganise and a new management team was formed and it is led by Michael O’Leary who made key changes to the airline. It was under the guidance of Michael O’Leary, Ryanair reframed as low-cost airways across Europe. Ryanair is the main developer of low-cost model in European airline industry apart from the closest competitor Easyjet. It started of providing airline services between 2 countries Ireland and the United Kingdom. Now, Ryanair has destinations in 26 countries with 950 routes. In this case study we will mainly focus on two major points. Why Ryanair has been successful so far and is the Ryanair strategy sustainable?
(1.1)Approach
We will try to find the answer for the above questions by understanding the prising policies and strategies adopted by Ryanair. The breakdown has been done by using major concepts such as Porters five forces, SWOT analysis PESTEL analysis, key success factors and value chain etc. knowledge on Ryanair. Study Ryanair’s environmental analysis and strategic decisions and finally predict Ryanair’s performance and competitive gain in the future.
(2) Environmental Analysis
Environment has a major influence on proper working of any business. It is very
Master of Science in Business and Entrepreneurship
Assignment 1
Business Strategy and Creativity
Case Study of Ryanair
Submitted by Prasanna Pavuluri
Student Number: D14124072
Date of Submission: 28 November 2014
Table of Contents
No table of contents entries found.
(1)Introduction
Presently low-cost has airways transformed the airlines industry. More and more consumers prefer lesser prices over luxuries. In 1970s United States domestic airline company named southwest introduced the low-cost business model. Many airlines across the globe like AirAsia and SpiceJet started following the low-cost model. Ryanair was one of the few airlines in Europe to adopt the low-cost model. In 1990 Ryanair suffered a £20 million loss and had to entirely reorganise and a new management team was formed and it is led by Michael O’Leary who made key changes to the airline. It was under the guidance of Michael O’Leary, Ryanair reframed as low-cost airways across Europe. Ryanair is the main developer of low-cost model in European airline industry apart from the closest competitor Easyjet. It started of providing airline services between 2 countries Ireland and the United Kingdom. Now, Ryanair has destinations in 26 countries with 950 routes. In this case study we will mainly focus on two major points. Why Ryanair has been successful so far and is the Ryanair strategy sustainable?
(1.1)Approach
We will try to find the answer for the above questions by understanding the prising policies and strategies adopted by Ryanair. The breakdown has been done by using major concepts such as Porters five forces, SWOT analysis PESTEL analysis, key success factors and value chain etc. knowledge on Ryanair. Study Ryanair’s environmental analysis and strategic decisions and finally predict Ryanair’s performance and competitive gain in the future.
(2) Environmental Analysis
Environment has a major influence on proper working of any business. It is very
References: 1. Andrea Magrath for Mailonline. (2014, October 31). Ryanair named second-worst brand in the WORLD for customer service. [Web Article] Retrieved from http://www.dailymail.co.uk/travel/travel_news/article-2812512/Ryanair-named-second-worst-brand-WORLD-customer-service-AXA-insurance-comes-poll.html 2. BBC News. (2010, July 14). Ryanair reprimanded for 'misleading ' advertisements [Web Article] Retrieved from http://www.bbc.com/news/10626652 3. Dobruszkes, F. (2006). An analysis of European low-cost airlines and their networks. Journal of Transport Geography, 14(4), 249-264. 4. Kevin Done from Financial Times. (2009, February 5). Airbus snubs Ryanair offer to bid on jets [Web Article] Retrieved from http://www.ft.com/cms/s/0/4549908e-f325-11dd-abe6-0000779fd2ac.html?nclick_check=1 5. O 'Higgins, E. (2014). Ryanair: The Low-Fares Airline - Future Directions? In G. Johnson, R. Whittington, K. Scholes, D. Angwin & P. Regner (Eds.), Exploring Strategy: Text and Cases (10th ed., pp. 612-623) 6. Oliver Smith for The Telegraph.(2013, May 17). Ryanair accused of 'exploiting ' staff [Web Article] Retrieved from http://www.telegraph.co.uk/travel/travelnews/10063697/Ryanair-accused-of-exploiting-staff.html 7. Porter, M. E. (1979). How competitive forces shape strategy (pp. 21-38). Boston: Harvard Business Review. 8. Ryanair Final Annual Report. (2014) Retrieved from http://corporate.ryanair.com/docs/corp/investor/2014/final_annual_report_2014.pdf 9. Wetherly, P., & Otter, D. (Eds.). (2014). The Business Environment: Themes and Issues in a Globalizing World. Oxford University Press.