Ryanair

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

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:

Low fares- This is a result of lower costs, enabling Ryanair to offer lower costs than their competitors. If Ryanair can replicate their current cost model which has proved so successful in the European market and transfer it into transatlantic routes, they could offer flights at a significant amount less than Delta and BA.

Ryanair, originally an Irish low-cost airline and established by the Ryan family in the year of 1984 starting off with only 25 members of staff. Replicating the American Southwest airline business model and then officially relaunched in the year 1990. It has vastly grown from being a single-aircraft family operation into one of the world’s top leading airlines. Now Ryanair has reached 11,458 employees. The airline carries over 131 million passengers per annum on over 2,000 flights daily, from 86 different routes, flying to more than 205 destinations in 33 countries.

As Ryanair considers its expansion in pursuit of achieving its goals of making air travel free it must ensure that it is able to keep its core brand values. This is because it is them that create Ryanair’s brand

This article is focusing on the Ryanair case study in addition to understand the main model and values in the strategic management field. In addition, Ryanair is founded in 1985 and it’s an Irish low cost airline which has become Europe most popular aviation providers (Eleanor, 2016).

From the analysis, Ryanair should maintain its current position. However, it is strongly recommended to provide the check-through baggage for connecting flights for other airlines. This could increase number of passengers who have to transit via a route that Ryanair provided. Moreover, it should increase ancillary services by offering referral program to car rentals, hotels, and travel agencies. By doing this, it could generate more revenue to provide more services in other parts.

In the government sector Ryanair has the advantage of having most of its operations in Europe. This is a politically stable region with common flight regulations which makes it easy for Ryanair to be familiar with them.

The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in its task environment.

The needs though would be the same for many travellers. Needs such as helpful check-in staff. Lots of check-in desks to reduce queuing times, though Ryanair unfortunately don’t offer this compared to an airline such as British Airways, easy boarding, comfortable seats/comfortable flight. One of Ryanairs’ is that they get you from A to B. Thus a lot of the features of their aircraft are very basic. For example there are no seatback pockets, so that passengers are able to put newspapers and other possessions.

Ryan air’s success can be attributed to a few factors. First would be its ‘Ever-decreasing costs’ mantra, providing low cost, low fares and no frills carrier strategy while achieving operating efficiency and satisfying its customers which gives it a competitive advantage and cost leadership. It targets price sensitive customers and offers them the cheapest short haul service among all its competitors in the market. Ryanair gives much focus on keeping costs low and is constantly examining every area of its operation to implement cost reductions. The initiatives taken to keep costs low include:

The airline industry has long been striking profitable deals with airports to keep certain routes open. Ryanair's business strategy is made up of four guiding principles: employ a single type of plane, constantly review overheads, turn aircrafts around quickly and abandon point’s schemes.

Ryanair was one of the first low cost carriers that arrived in the European market. The EU integration policies ensured that it got a massive boost in the ways it could enlarge in the market. There were a lot of destinations available due to the high number of urban places in the EU and the regulations that allowed the free movement of people.

Founded in 1985, Ryanair has grown exponentially to become Europe’s largest airline carrier. Currently the airline services 830 low fare routes across 26 European countries. Operating in a sector suffering from several external factors such as the war in Iraq and subsequent rises in the cost of fuel, the recession and the ensuing impact on the disposable income of the consumer, the