Ryan Air

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1. Executive Summary
To identify an appropriate strategy for a given industry one must look into the external and internal factors influencing the company. The following report will discuss these factors regarding Ryanair, which is one of the leading budget European airlines.

This report identifies important issues of Ryanair 's environment which have been formed since the company 's development. It also goes on to analyse the future opportunities and threats which Ryanair is likely to face in currently and in the future.

Ryan air have developed a cost focus strategy, where it focuses on reducing cost to obtain a competitive advantage. The following discussion will show just how efficient the company has implemented this strategy.
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3.3 Rivalry Among Existing Firms
Not only does Ryanair have to compete against existing budget airlines, but they also have to compete against chartered airlines and mainstream airlines such as British Airways and Luthansa. Due to the competitive nature of budget airlines, companies generally would rather return lower profits but obtain the majority of market power.

The rate of industry growth has been alarming and according to CNBC European Business, it is about to be saturated with airline companies. Due to the high amount of operators and high number of seats available, companies can only gain more of the market share at the expense of others (First Conference Ltd 2007). Hence larger airline companies have been bullying less fortunate companies and causing them to fail.

Since Ryanair is one of Europeans most predominant budget airlines, they do not take likely foreign firms investing in their "home state". An example of this is with Go 's foray into Dublin. Ryanair saw this move as a personal attack and so they increased the frequency of flights around Dublin and reduced the prices to levels which Go could not match. Eventually Go stopped servicing Dublin. This gives a indication of how intense rivalry is in the European budget airline industry.

Exit barriers for airlines are typically high. Large amounts of investment are easy for airlines to acquire but once a company

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