Strategic Analysis of Ryanair Essay

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

Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14-seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low-fare segment market. It initiated service from London’s secondary airports. In terms of competition, Waterford and Gatwick didn’t pose any challenges.

This paper is to examine the key potential drivers within the present internal environment. Several models would be applied to support the answer and they are Stakeholder Power/Interest Matrix, Cultural Web, Resource audit, Value Chain, and threshold and core competences. With using Ryanair as an industrial example, this essay would talk about how important strengths and weaknesses are to be used in designing strategy.

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:

Ryanair airlines low fare concept was conceived by three Irish businessmen in 1984 who wanted to break up the duopoly of the major airlines between Ireland and England. The strategy was simple in nature; offer lower prices than any competitor on the same route. Ryanair began operations in 1985 with a single 15 seat turboprop aircraft operating one route between Waterford, Ireland to London, England. The fare was only €99 ($138), less than 50% of the two competitors at the time. Ryanair carried 5000 passengers during the first year. In 2012, the airline carried more than 79 million passengers. Ryanair has demonstrated consistent growth and profit with the exception of 1991 and 2001(Ryanair, 2013).

The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or

Main reason were that it abolished the mixed model, applied low cost strategy, improved its operation, reposition itself, and increase number of ancillary services. A key issue that waited for Ryanair at the end of 1999 was how to move and what to do to maintain or increase its market share.

Ryanair, Europe's first and largest low fares' airline started in 1985 and was set up the Ryan family with a share capital of just £1, and a staff of 25. Over the past few years the company has shown tremendous growth and now operates more than 1400 flights every day from 44 bases and around 1100 low fare routes across 27 countries which connect 160 destinations. The company now has approximately 73.5 million passengers in the current fiscal year.

Set up in the year 1985 at a capital of 1 pound with a staff strength of 25, Ryanair is today the World’s favourite and most commonly used airline which operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft and is expected to increase it by another 64 in 2 years. Ryanair currently has staff strength of more than 8,000 people. Its passenger base has been increasing

The PESTEL shows that the external environment mainly works into opportunities for Ryanair with some unpredictable factors that might threaten the business operation. Example of this unpredictable factor is the fuel price. The fluctuation of fuel price might work into the advantage or disadvantage of Ryanair. For Ryanair to thrive in its business operation, it ought to overcome these rampant external factors and exploit the external factors that would improve their business operation such as the EU expansion. With the EU expansion, Ryanair can expand the

Dynamic capabilities provide a constant flow of opportunities (Lynch, 2003), from which Ryanair could take advantage in order to sustain the competitive advantage:

They are one of the main contending and competitive agencies inside the market, and are to be considered the most profitable. This report attempts point by point by the analysing the investigation of Ryanair. It takes a gander at Ryanair's current system and the administration of that procedure. It recognises how the business ‘operations and capacities impacts on the transporter's client relations and leaderships with respect to their general strategy. It likewise gives a brief assessment of Ryanair's monetary structure and also an environmental investigation of the European aircraft industry and how this influences Ryanair. The report is chiefly a contextual investigation examination in view of Müller (2011, p.89), review of Ryanair directed in 2004. In any case, other auxiliary research has been analysed and used to bolster the contentions set forward in this archive which includes a combination of description and

This report will give the brief introduction on Ryanair an Airline company and Chaudhary Group which is dealing different products and services. We will be giving discussing about the strategic theories followed by Ryanair Airlines to achieve their goal and how it succeeded on it. On second topic we will be discussing about the business model innovation of Chaudhary group and how they are achieving their goal and doing further development with many more products and services.

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

The purpose of this report is to comment at the first part how Ryanair achieve its competitive advantage through the RBV analysis (Barney,1991), the second part will assess its approach to the diversification through the Ansoff matrix , the third part will discuss the company’s organisational culture using the cultural web modeland last part its internationalization strategy.