In this study we shall emphasize on the hurdles and threats Ryanair has to face and what could be the remedy for the same. A SWOT analysis of Ryanair’s strategy with regard to its leadership and management by Michael O’Leary will help us understand if Ryanair can capture its projected market share and make a mark in the European airline industry. SWOT Analysis: STRENGTHS at Ryanair 1. Low costs Ryanair stands out in the fact that it has the lowest unit cost when compared to all the other European airlines. Also, on a worldwide basis Ryanair has a distinctive factor of deploying their services by incurring low costs.
1.2 COMPANY INTRODUCTION Ryanair is an Irish low-cost airline headquartered in Swords, Dublin, Ireland, with its primary operational bases at Dublin and London Stansted Airports. It is the Europe’s only ultra low cost carrier. In 2013, Ryanair was both the largest European airline by scheduled passengers carried, and the busiest international airline by passenger numbers. The airline has been characterized by its rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success
The marketing mix I have conducted for Ryanair identifies its core values of low prices, efficiency and value for money. These values should always be kept no matter how the operations change. We know that the low cost is the biggest strength and holds the most power of the business. I have chosen Ryanair’s Business Plus fare and the product/service that I will conduct a marketing plan for. The service includes a variety of benefits such as: flexibility on tickets, 20kg checked-in baggage allowance, fast-track security, priority boarding and allocated seating.
Ryanair’s strategy is in no doubt a low cost strategy and in my opinion, if Ryanair could have the chance to fly passengers for free at a profit they certainly would! However, this low cost strategy does come at a price. Ryanair are a cheap and efficient but most certainly no frills airline. Their consumer market is aimed towards flyers who seek an efficient, basic and luxury free flight. The man behind the recent success of Ryanair is the CEO Mr. Michael O’Leary.
INTRODUCTION TO MARKETING Marketing is a process of communicating the value of product or service to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers. From a Societal point of view, Marketing is a link between a society’s material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships. It is a process of communicating the value of a product or service through positioning to customers.
Ryanair Ltd. is an Irish low cost airline with its primary operational bases at Dublin and London Stansted. Ryanair was founded in 1984 as "Danren Enterprises” by Christopher Ryan, Liam Lonergan and Irish businessman Tony Ryan. The airline was shortly thereafter renamed "Ryanair” and began operations in 1985. (Wikipedia, 2016) In 2013, Ryanair was both the largest European airline by scheduled passengers carried, and the busiest international airline by passenger numbers. (Ryanair.com, 2016) Ryanair is Europe’s favourite airline, carrying over 106m p.a.
It shows that Ryanair`s customer interested with services from Ryanair and they willing to pay in exchange for having cheap fares. In 2010, Ryanair is recognised as one of the “Ancillary Revenue Champs” with revenues in 2009 is €663 million and Ryanair`s ancillary revenues grew by 21 per cent to €802 million 2011. It shows that they are very committed in execute the solution to cover up the DOT
Research topic : Why the emergence of Ryanair’s low-cost airline was so successful? The emergence of an indigenous airline as Europe’s most profitable is remarkable. How Ryanair changed their pricing strategies to avail of a whole new market of people bi-passed by the premium strategies previously used, began to transform the industry. Ryanair was founded by Tony Ryan , Christopher Ryan and Liam Lonergan in 1985.Tony Ryan had previously worked for Aer Lingus who had gained a monopoly within Ireland’s airline industry. Ryanair were keen to break this monopoly, aswell as the duopoly of flights to and from Ireland and Britain held by Aer lingus and British Airways and soon introduced a 15 seater embraerer bandeirante turboprop from Waterford to
Marketing is not just selling and advertising. It involves the understanding of the consumer’s needs, developing products that provide superior value and communicating them to the consumer through the right price, distribution channel and promotional activities. (Philip Kotler & Gary Armstrong, 2004.) Marketing conception is a philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Under the marketing concept, customer focus and value are the paths to sales and profits.