Ryanair is leading low cost airline in Europe. It provides low cost travel on frequent point-to-point flights on short-haul routes. Ryanair’s vision and mission is to ‘’ To firmly establish itself as Europe’s low fare, schedule passenger airline through continued improvements and expanded offerings of its low fare service and to become Europe’s most profitable, low cost airline by rolling-out proven low fare, no-frills service in all markets in which we operate to the benefit of passengers, people and stake-holders”. (Our Strategy, Ryanair). The aim of this report is to analyse the attractiveness of the industry for Ryanair using Porter’s Five Forces model and to research Ryanair’s strategy.
Ryanair could target fare-conscious leisure and business travelers who might prefer a substitute form of transportation by charging lower fares. 2. Low cost Ryanair could provide low cost in its operation by using a single model of aircraft. It allows for minimisation of training and maintenance costs, efficient management of spare parts inventory and more flexible scheduling of flight crews. Since Ryanair purchase a large number of aircraft from Boeing, they can negotiate
There is evidence of the company implementing certain policies to reduce pollution. Despite their environmentally friendly strategy, the company has been diminished by bad publicity. Thus Ryanair should adhere to good business practice for sustainability and high performance. Legal: Legal factors can affect the company 's image and reputation. In August 2003, Ryanair ceased operations at Strasbourg after losing a court case brought by Air France.
In order to ensure the services or product are inimitable, the services or product must have its own uniqueness, the path dependency created the value throughout the process, it has the causal ambiguity which the resources are not being able to re-created and last but not least where it has a social complexity which the characteristics of a firm’s resources that are costly to imitate because the social engineering needed is beyond the capability of competitors. Ryanair Holdings’ practically engaged the transactions with the customer using the internet as the passengers must book and pay for fares on the Ryanair website or call center. This technology system practically would be easier for the competitors to imitate. This is because the technological systems have no boundaries and everyone or every company would be able to use the technology. By this technological advancement been applying in Ryanair Holdings, it simply indicates this airlines company are not having the competitive advantage through this method of booking, payment, check-in and boarding.
The main strength of Ryanair is it has a strong brand name since it already established since 1985. By having a strong brand name, it enables the Ryanair to create customer loyalty as the customers feel that they have some shared values with the Ryanair. For example, Ryanair offers lowest fares compared to others competitors and on time departures, thus the customers who are price sensitive and punctual are more attracted to Ryanair. As a result, Ryanair always be their first choice and it able the company to retain their loyal customers. Therefore, by having a strong brand name, it can contributes to the customers loyalty, thus leads to a growth and expansion of the company.
Sales and marketing activities are associated with purchases of products and services by end users and the inducements used to get them to make purchases. This primary value chain activity has created value for both the Ryanair Holdings business and its customers by using pricing strategies to keep low fares rate. In spite that Ryanair offer lower fares than other competitors, it use the extensive use of ancillary fees to raise revenues on non-ticket items. It has become a trademark of Ryanair and forms a core element of its low-cost strategy. This strategy will persuade potential buyers to make those purchases as it offers low ticket fee since they might not aware of the arisen of other fees from the ancillary services such as on food, checked baggage, priority boarding and other
Introduction: Ryanair is an Irish low fare airline which was founded and named by Ryan family in year 1984 with bases at Dublin and Stansted airports. Ryanair was bought into operations in the year 1985. From a small company, it has grown to a big carrier company across Europe. At first, the aircraft used to carry 15 seats from Waterford to Gatwick airport and back again for short distances. Passengers began to increase and they expanded their business from one country to another thus spreading across the whole Europe.
In fact, Aer Lingus asked the Commission to oblige Ryanair disinvest its minority shareholding in the company pursuant to Article 8(4) EUMR due to the fact that according to Aer Lingus, these shareholdings consisted in a de facto reportable concentration pursuant to EU Merger Control rules as well as in a partial implementation of the merger that had been deemed as unlawful by the Commission itself in its 2007 decision. However, the Commission, disagreed with Aer Lingus’s argument, and in its decision, which was adopted 11 October 2007, it argued that Ryanair had not acquired control over Aer Lingus, pursuant to Article 3(2) of the EU Merger Regulation, thus it could not order Ryanair to disinvest in the airline. The Commission extended in support of this decision, that Aer Lingus had other major shareholders besides Ryanair, such as the Irish Government, which held a shareholding comparable to the one held by the rival airline therefore the shareholding should have not been cause for
the internet,websites, networks smart phones, hardware and software and the process of sending and and storing data. Information technology plays a massive part in Ryanair they were one of the first companies in the EU to introduce a booking program for flights via the internet using a new system called skylights this system allowed customers to use the Ryanair website to book flights and pay for them in real time since the launch of the skylights system Ryanair heavily promoted its website through the means of advertising in newspapers, radio and television as a result of this Ryanair's bookings through the internet were 96% on a daily basis since September 2004. Ryanair also launched an information technology headquarters in swords Co Dublin were 200 people are employed to monitor these transactions
Ryanair Unethical Practice 1 DETAILING THE UNETHICAL ACTIONS/BEHAVIORS IN THE ORGANISATION Although Ryanair are one of the most profitable airline companies in the world, they have also acquired the reputation as “The most hated airline in the world”. The following are some of the ethical situations that have led them to gaining such a title; Labour Law Violation: In 2014 Ryanair were fined €8.1 million by the European Commission for the hiring of French staff between 2007 and 2010 but using Irish contracts for the employment. This meant that instead of paying 45% social charge that is the standard in France the organization were paying 10.75% which is the standard in Ireland. Ryanair tried to argue the point that they worked for a company that had a registered company in Ireland along with spending most of their working days on Irish registered planes. The Judge in the case stated that it was “clear social dumping” and “an issue of unfair competition against other airlines that respect national legislation”.