Ryanair – the low-fares airlines Case Study By Sid Hegde Ryanair – the low-fares airline Table of Contents Q1. Why has Ryanair been successful thus far?..................................................................3 Q2. Is Ryanair 's strategy sustainable?..................................................................................4 Q3. Would you recommend any changes to Ryanair 's approach?.......................................5 Q4. Should Ryanair continue to pursue the Aer Lingus bid?..............................................6 Q5. Evaluate the strategic leadership of Michael O 'Leary..................................................7 …show more content…
First mover advantage Ryanair was the first airline in Europe to introduce low fares and it has successfully made use of first mover advantage by negotiating very good rates with secondary airports and locking in landing slots at these airports. Michael O’Leary’s leadership Michael O’Leary has been the key ingredient of success for Ryanair. His understanding of the Southwest model and it’s successful adaptation has transformed Ryanair and has made it the leading low fares airlines in Europe. Low cost operations Ryanair has the best run low cost operations helping it achieve the best operating margin in the industry. All elements of it’s operations are geared towards reducing cost and improving efficiency. 3/20 Ryanair – the low-fares airline Q2. Is Ryanair 's strategy sustainable? Yes, Ryanair’s strategy is sustainable because it’s core competencies of ‘Low Price’, ‘Cost conscious culture’ and ‘R&D on aircraft design’ (A5) gives it competitive advantage. Low Price Ryanair’s strategy is based upon this core competency. Strategies based upon core competencies are usually successful as articulated by Prahalad and Hamel in their article on core competencies [4]. Cost conscious culture As we can see from the cultural web (A12), the low cost culture has spread throughout Ryanair’s organization. The structures and
Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair
This is an analysis of the Airline Industry in Europe. The paper will cover the current market situation, including financials and market volume. Following this will be a Five Forces analysis on the factors that affect industry competition. The paper will conclude with key insights into the profitability of the industry and a SWOT analysis of one of the industry’s best performers and what rivals and possible future entrants can learn from their success.
The strategic plan of Ryanair has been to establish itself as Europe’s leading low-fares airline.” Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.” (www.ryanair.com)
Generally speaking, the launch strategy of Ryanair was not the best one for that moment in time. They began operations between Dublin and London, in a very saturated market, which was already served by two competing and very experienced companies owned by the governments:
Rob Griffin, the senior vice president and U.S. director of search for Media contacts, a media consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France as the company seeks to compete in the hyper-competitive U.S. market. Even though Griffin is satisfied with the performance of his company, he wants to make the team to remain the leading position and provide the results that Air France wanted. At the time of the case, SEM has become an advertising phenomenon, with North American advertisers spent $ 9.4 billion in the SEM channel, up to 62% in 2005. In the past, Media contacts h had concentrated on Google, Microsoft, and Yahoo for the search engine
Ryanair (2017) are committed to reduce noise as wells as emission when going through the investment of the next generation aircrafts as well as engine technologies. According to Brighter Planet report (2011) Ryanair was identified as the industry leader in term of environmental efficiency.
Ryanair is one of the most profitable low-cost and low-fare airlines in the world. Even though it was merely bankruptcy in 1991, it could stand up and become very successful by 1999. An issues was what led Ryanair to huge losses in 1991, how did it re-gain its position, and what lay ahead in the next century.
Table of ContentExecutive Summary1I. Introduction2II. Main Body1. History of British Airways22. Current strategic situation….42.1 Internal analysis42.2 External Analysis52.3 SWOT82.4. Current strategy93. Potential Strategic options124. Recommended strategic direction with rationale164.2 Strategy Evaluation175. Identification of critical success factors186. Performance measurement criteria197. Conclusion218. Bilbliography249. References24Executive SummaryThe main aim of this report is to undertake a review and analysis of British Airways. It is UK's leading airlines both at international and domestic level, with its operations spread over 300 destinations across the world. The report starts with a brief description of the company. Then the
Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown
In 20th century air travel was exceptional and expensive; travel was restricted for wealthy individuals that tend to travel for special occasions. After the II World War improved design has modernised the industry and allowed to carry more passengers. That resulted in economies of scale that lowered the price of the ticket within reach of a regular person. Ryanair Ltd is an example of low cost carrier that revolutionised the airline industry by offering short-haul flights around the Europe for the lowest fares (Ryanair, 2015). In similarity to other businesses, the airline industry is affected by changes in its external environment. Ryanair as well as other low cost airlines can afford to cut the price of the ticket by reducing operating costs. One of the main
Our group will do a report about easyJet’s case-study. First of all, we will get information about EasyJet from the textbook and the Internet. Secondly, we will do the SWOT analysis and find out the reasons for EasyJet’s success by making marketing mix. Thirdly, with all the information, we use them to answer 5 questions about the case-study in the text-book. Finally, we apply these experiences to our job in the future.
1. In-depth environmental analysis of the European Airline industry and discuss the implications for the budget sector and especially for Ryanair. 2. An integrated understanding of the functioning of a company – its human and technical operations, leadership, customer relationships and financial structure. 3. Implications of the internal functioning to create viable strategic positioning and discuss any changes to Ryanair’s approach to ensure an improved sustainability 4. Evaluate the strategic leadership style of Michael O’Leary
Almost three decades ago, in July 1985, three brothers, Catlan, Declan, and Shane Ryan founded Ryanair airlines in the southeast of Ireland. Little did they know, it would become one of the most successful low- cost airlines in the whole industry. It started with just one leased fifteen seater plane that flew from Ireland to London’s Gatwick airport of which their father, Tony Ryan was the chairman. After the government deregulated air traffic to England, Ryanair got the license to operate from Dublin to London. At the end of that year, the airline had flown 5,000 passengers already. By the following year, it quickly started expanding with the purchase of two bigger but older planes. Since the very beginning the company maintained a low-cost strategy. They managed to provide fares that were 20% lower than what its main competitors were offering.
Now I am going to discuss Ryan air’s (RA) current strategic position by analysing its macro (external)and micro (internal) environment.
The objective of this report is to appraise and evaluate the external environment, internal capabilities of Ryanair and assess the competitive environment. This project report also evaluates the marketing focus deployed by Ryanair in the year 2009 when the airline achieved a benchmark by being Europe’s largest carrier by passenger numbers and market capitalisation.