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.
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.
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
My first and most important goal in undertaking this research assignment is to source, dissect and analyse the low cost strategy model of Ryanair and how they succeed in using this strategy. Ryanair, founded in 1985 by a man named Christopher Ryan has grown significantly throughout the years. It has grown to be the largest airline in Europe in terms of numbers of passengers. This is of course, down to their low cost strategy. 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!
The faster the better has made the customer satisfied. Ryanair should ensure to punctual in the flight schedule and avoid any flight delay that can cause the customers dissatisfied with the services except something unavoidable such bad weather. Furthermore, Ryanair also could create a sense of place in order to make the customers anticipation about their destination and help them reminisce about a place they were in. By doing this will create customer loyalty and associate Ryanair with positive emotion experience as well as improve customer satisfaction. Other than that, Ryanair also should build close relationship with their customer by using social media to get their feedback and also opinion.
to open new routes thereby providing a diversified revenue stream. 5. Considering Crowair plc is a low cost airline the expansion to paris will be relatively cheap as the management will try its best to reduces costs plus there is no additional investment as an existing flight is being
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
As the time changed, there are many threats come and hurt the Ryanair airline. However, in the recent years, Ryanair keep changes and make a development on its brand image and made a lot of efforts to attract more customers and use the past bad experienced to teach them to become better in future. After Ryanair faced all the challenges in the airline business for many years, it is managed to become a biggest low-fares airline in the Europe and use the low fares as a competitive advantage of Ryanair. In this report, we are required to perform a SWOT analysis, evaluate four criteria of sustainable competitive advantage, discuss the two primary value chain activities which are operation and sales and marketing, and finally we need to discuss the impact of two external environmental factors that challenge Ryanair company to remain competitive in the airline industry. 1.
Financial analysis (internal analysis): Financial analysis shows increase in profit margins. Analysis showed that Ryanair airlines were still in profit even after cancelling the flights but their market share prices decreased. The cost of maintenance, marketing, distribution and rental aircrafts increased but there is a decline in operating margin which led to higher profit margins. Ryanair may face loss in profit in coming days if they refund the 400000 affected customers. External analysis: It is done to check the environment in which the company operates.
5. GROUP STRUCTURE Ryanair corporate structure includes Board of Directors which comprises of 13 members and one of them is the Chief Executive officer, Michael O' Leary. Michael O' Leary is the CEO of Ryanair as well of Ryanair holding. The Board is also a member of different committees like Executive Committee, Nomination Committee, Audit Committee, Air Safety Committee and Remuneration Committee. Apart from the Board of Directors, the corporate structure also include Chief operating officer, Chief technology officer, Chief Marketing officer, Company Secretary, Chief Commercial officer, Chief Financial officer and Chief People officer.