strategic management

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 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.

However, Ryanair keep pursuing for and maximizing the core value from the shareholders’ perspective. In other words, shareholder’s interest in terms of profit driven within the company takes the majority weight of the total stakeholders’ value. All strategic measures taken by the firms’ approach to fulfill a single request from its customers as “low air fare”, but to realize all means of cost saving and additional margin for the company owner.

Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline services between Ireland and the United Kingdom. Ryanair’s strategy is based on providing a no-frills service with low fares to stimulate demand from budget-conscious travelers. The firm wanted to enhance its revenue through ancillary services offered in conjunction with its core airline services. Ryanair’s business level strategy is cost leadership. Although the firm faces weaknesses and threats, their strategy has created a competitive advantage. Ryanair’s competitive advantage will weaken over time due to vulnerability to fuel prices, ancillary charges, low employee satisfaction and their negative brand image.

Now I am going to discuss Ryan air’s (RA) current strategic position by analysing its macro (external)and micro (internal) environment.

Prior to 1991, Ryanair had suffered from continuous losses from 1985 to 1989. The first reason that put it into this situation was that it tried to position itself as a low fare airline with the first rate services. It tried to keep low and unrestricted fare, while keep focusing on the best customer service and relationship. This mixed model was proven inefficiency. The low price could lure number of

Ryanair’s goal was to hold its position as Europe’s leading low-fares airline, operating frequent multi-destination flights on short-haul flights, based mainly in regional and secondary airports. The strategy was based on a mission of

Low price, value for money and efficiency are core values for Ryanair. Those core values should not change regardless of environmental turbulences. This means that cost reduction and other profit sources than travel fares are important factors in Ryanair’s strategy since they cannot compensate its expenditure by increasing travel fares.

To identify an appropriate strategy for a given industry one must look into the external and internal factors influencing the company. The following report will discuss these factors regarding Ryanair, which is one of the leading budget European airlines.

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

In 1985, the Ryan family founded Ryanair to provide airline services between Ireland and the United Kingdom. Ryanair’s strategy is based on providing a no-frills service with low fares to stimulate demand. Ryanair’s business level strategy is cost leadership. Although the firm faces weaknesses and threats, their strategy has created a competitive advantage. Ryanair’s competitive advantage will weaken over time due to vulnerability to fuel prices, ancillary charges, low employee satisfaction and their negative brand image.

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.

Ryanair has always managed to come up with cost effective strategies which helps it to maintain a competitive advantage over its rivals. It also considers the present environment as the basis for formulating its strategies, for example, the airline made an effort to gain soccer fans as its customers by announcing a special return flight for all Arsenal fans from London Stansted to Barcelona Girona, so that they can watch the club’s vital champions league match in Barcelona on the 6 April, the flight would leave from London on 6 April at 8:30 am and

Valuable is measure through the ability of the business in implementing strategies that improving the effectiveness and efficiency of the business operation. In the Ryanair Holdings case the business are valuable since they are able to improve the effectiveness and efficiency of their business by using a primary method of the cost control that used a single model of the aircraft that allows minimizing of training and maintenances cost, efficient management of spare part inventory and more flexible scheduling of flight crew. By using a single model that have been widely used, the flight crew are more readily available for hire. This will reduce the cost of training since the company does not need to provide their flight crew with any training and also ensure that they flight crew ability to handle the flight and reduce the possible number of defect. Besides that, the effectiveness of Ryanair Holding customer services that deliberately reduce the services in some area such as free checked bag, meals, flight to major airport and raising the services in other area such as on-time departure and arrival and also fewer bag lost has attract more customer since they believe that the customer will endure discomfort and indignity as long as they get to their destination cheaply and with their suitcase on time. This valuable aspect will assure the competitive advantages of Ryanair in the long run since them able to attract customer with effectiveness and

Ryanair has long been the pioneer for low-cost commercial air travel. The business model conceived by CEO Michael O’Leary affords the company much in the ways of agility and long-term adaptability. With the economic recovery of the European Union, new threats arise to challenge Ryanair such as an emerging budget air carrier market, fluctuating fuel prices, and controversial customer relations. Examined in this paper will be the internal cost accounting factors that affect the firm as well as an analysis of Ryanair’s Strengths, Weaknesses, Opportunities, and Environmental Threats (SWOT). Through all of this many opportunities arise in the way of route expansion and capitalizing on existing revenue. To understand the