Ryanair - Strategic Position

5370 WordsMay 25, 200922 Pages
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…show more content…
Ryanair has outperformed many competitors, even globally. The strategic focus on offering the lowest price has helped Ryanair to accept customers service at the bottom line and convince customers to fly no-frills. 1.2The strategic development of Ryanair Since its restyle into the first low cost carrier the airline company’s objective has always been ambitioned meaning that Ryanair has been intent to establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanding offerings of its low-fares services and moreover to maintain this position sustainably. Ryanair accomplishes its objective by offering low fares that generate increased passenger traffic. Other essential determinants in this respect are cost-oriented leadership and operating efficiencies. In the following section additional key elements of Ryanair’s price-based business strategy are pointed out: Low fares: Cheap flights are offered to stimulate demand by attracting price-sensitive leisure or business traveler who would revert to alternative, cheaper means of transport. Seats are sold on a one-way basis. 70% of the seats are sold at the minimum available fare assigned for a certain route. Once they are filled, the price rises in respect to the demand for a destination. In September 2003, Ryanair

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