Strategic Analysis on Ryanair

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TABLE OF CONTENTS Introduction | 2 | Analysis | 3-7 | Problems | 7 | Solutions | 8 | Conclusion | 9 | References | 10 | Word Count: 2061 Introduction Ryanair was founded in 1985 by the Ryan family, which was headed by Tony Ryan. It was the first budget airline in Europe, modeled after the successful US carrier, Southwest Airlines. It was founded to provide scheduled passenger airline services between Ireland and the UK, as an alternative to then state monopoly carrier, Aer Lingus. At the beginning, Ryanair was a full service conventional airline, with two classes of seating, leasing three different types of aircraft. Despite growth in passenger volumes, by the end of 1990, the company faced a great conflict, disposing of five chief…show more content…
In a way, the competitive advantage of Ryanair would be the low fare, as there is not much differentiation on airline services. As long as the passengers reach the destination safely, there would be no problem; therefore price is the main factor. Central Problems After evaluating the analysis, it can be concluded that there are several central problems that exists within the strategy of Ryanair, which are poor customer and media relations, poor employee relations and the rising of fuel prices. Due to the low fare, Ryanair would have to cut cost in many areas of the service without impacting the core competence, which is transporting people safely to their destinations. However, due to the cutting cost, Ryanair neglected the quality of other services. According to a poll of 4000 travelers around the world by TripAdvisor in October 2006, Ryanair was voted the world’s least favorite airline. Ryanair scored badly in the category that included comfortable seats, security, never lose my luggage, best amenities’. Ryanair only scored well on the ‘best fares’. Moreover, the customer service was compromised as unfriendly staff was cited as the worst part of the Ryanair experience. In one incident, it charged a customer with cerebral palsy £18 to use a wheelchair. Ryanair then charged 50-cent wheelchair levy on every passenger ticket due to the protests. Poor treatment of customers whose

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