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Ryanair Case Study Strategy Management(1)

Ryanair Case Study Strategy Management(1)

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1. Introduction..................................................................................................................................... 1 2. Strategic position analyses............................................................................................................ 1 2.1 Environment analysis ................................................................................................................. 1 2.1.1 2.1.2 PESTEL analysis .............................................................................................................. 1 Porter’s five forces framework ........................................................................................ 3

2.2 Strategic capability analysis ...................................................................................................... 4 2.2.1 2.2.2 Cost efficiency .................................................................................................................. 4 SWOT analysis .................................................................................................................. 5

3. Strategic choices of Ryanair .......................................................................................................... 6 3.1 Business level strategy .............................................................................................................. 6 3.1.1 3.1.2 Strategy clock ................................................................................................................... 6 A competitive advantage over years ............................................................................... 7

3.2 Corporate level strategy ............................................................................................................. 8 4. Strategy evaluations ....................................................................................................................... 9 4.1 Suitability ..................................................................................................................................... 9 4.2 Feasibility .................................................................................................................................. 10 5. Conclusion .................................................................................................................................... 10 References .......................................................................................................................................... 11

Scholes. Environmental and Legal. The air passenger duty.1. Johnson et al. a PESTEL framework is utilised to list the influences from the outside. Also the ever rocketing airport charges worsen the situation for Ryanair. and this factor is one of the key drivers Ryanair should take into consideration. Ryanair. the trade union pressure from the local government was rather big 1 . cost efficiency direction and a SWOT analysis are given to find out Ryanair’s organisation capability. 2. 2008. Campbell. (2008. has become another main concern of Ryanair (Mintel. 2003. Mintel (2007) questioned whether they should keep prices low. The British increasing air passenger duty for short-haul flights and similar tax in Ireland is predicted to cause the passenger numbers fall (BBC. p. in the second half. the macro and immediate environment are identified through PESTEL and Porter’s framework analyses.1. Technological. Since its first take-off in 1985.56). such as the government regulations. Among low cost airlines. environmental concerns.55) has quoted that the framework consists of six main elements. & Whittington. p. As to the macro-environment of the company. cancellations is also expected to bring Ryanair a huge spending annually. set to rise in November 2009 and 2010 respectively. analytical tools are used to analyse the environment and capability of Ryanair. 2009). the largest budget airline in Europe (Evans. The focus is mainly on the period between 2006 and today and some crucial moments for Ryanair are also mentioned.1 Environment analysis 2. Among those factors this budget airline is more likely to be influenced by some “key drivers” (Johnson. Political Political issues are concerned with the role of government. p. Economic. For Ryanair.1 PESTEL analysis Finlay (2000) sees the “remote environment” as crucial to business that it is “a model of those elements in the environment” that may affect the business’s decision making but it is beyond the influence of the business. 2009). Introduction The jungle of business in the airline industry has been reinforced by the introduction of an innovative idea—the no-frills carriers. 2005’s new EU regulation of passenger compensations for delays. Ryanair has experienced numbers of strategic modification according to both its environment and own capability changes. the company is also vulnerable to the fuel price changes. Mintel (2008) noticed those budget airlines have among the chief drivers of intra-European travel growth these years. which is becoming customers’ new favourite. and the second half will identify the strategies Ryanair has chosen with regards of the analyses done previously. such environmental factors have a higher impact on the strategy the organisation made. Figuring out the fact that the no-frills had been stuck in “soaring fuel cost” and “impending EU Emissions measures” embarrassment. namely Political. is one of the most successful cases. Strategic position analyses In Part 2 of this essay.375). & Stonehouse. 2. In the first half. Social. Box and Byus (2005) mentioned that as a non-union operation company based in Dublin. This essay is divided into two parts: the first half will examine Ryanair’s environment and strategic capability. up till nowadays the company’s full flight. and as the low cost is the key success secret of Ryanair.

Ryanair has engaged in the hedging. the turbulence and instability of fuel prices has been a headache since early. 2008). Being one low cost airline. 2001 attack. the Botching use of this strategy is said to cause £92 million in the last quarter of 2008 (Robertson. It calls itself “Europe’s greenest airline” and as shown on Ryanair official website.The company has to cut prices to attract more passengers. the vulnerability to cost factors like fuel prices. the pressure of cost savings has to be shoulder by other spheres of operation within the organisation. As shown in the case (O’Higgins. 2009). and a free online check-in system launched in 2006 is encouraged to save check-in time. achieving an increase of 45% compared to June 2004 (Kirby. exchange rate fluctuations. a research shows about 800. Security concerns have jumped to the top agenda of government since September 11th. Mintel (2010) finds out the short break abroad has been a trend for UK people. Social As to the Social factors. however. and its low prices and varied destinations across Europe have made itself a preferred choice for international students. 2006). 2008).000 UK households have a second home abroad in 2006. Moreover. the recession also effects people’s travel lifestyle: Mintel also finds fewer trips was taken in 2009 than previous years. The firm said in BBC news that high fuel prices had been a “drag on profitability” (BBC. while the company promised not to pass the fuel surcharges onto passengers. Economic Economic factors are also among the key drivers for Ryanair. I have noticed websites its staffs build to complain about the poor working environment and low average pay. 2009). Environmental 2 . and even home country students also like to choose it for backpack trips. Ryanair’s 100% online service is a good way to cut cost. exchange rates puts Ryanair faced with various economic challenges when making strategies. especially during the depreciation period of UK Sterling in 2009 and 2010. 2006). Ryanair has provided those with tight budget with opportunities to flight abroad. Technological Ryanair has also never ceased to technologically improve the efficiency to cut cost. aiming to lower costs. at the same time higher costs trim its profit from 2008. Ryanair’s fuel costs “represented 35 percent of operating costs in 2006”. The foreign property ownership trend will also help the increasing traffic. their efforts of fuel emissions. especially since the recession period. the fact that the denomination of oil price is in US dollars. Ryanair has been continuously calling on government to make sensible reduction in duty levied on airline including tourist taxes (BBC. It seems that Ryanair has tried to find way to cut staff costs. However. The strict and complex check-in process is the other way around with Ryanair’s quick check-in strategy. noise. In addition. Mintel (2009) statistics shows the third quarter of 2008 witnessed the hit of recession of budget airline. the increasing travel lifestyle and international student trips are two main ones. Illustratively. while about three quarters (71%) claim to cut down spending. will no doubt compound the risk for Ryanair. During the year of 2008 and 2009. and waste reduction have resulted in a leading status comparing with other major airline firms. Ryanair had planned to ground numbers of its aircraft in early 2009 due to passenger number fall and fuel prices (Bond.

e. Scholes. Ryanair has tried to achieve beyond the general regulations of EU. & Whittington. it has to ceiling this hour limit for its pilots to achieve efficiency (Weston. Also. For the airline industry.6 per cent of greenhouse gases emissions in the EU in 2006. 2002). The budget airline industry requires a solid financing back and experience is a plus for success. One 2008 CNN news said the firm had been found guilty of transgressions over two years’ period. and energy consumption controls. For security concerns. 2008. p. 2008) that aviation represents 2. the force majeure is another unexpected risk that may cause great losses. Ryanair does business on point to point flights with quick turnaround. the low cost airline. 2. as the low fares and high efficiency operation 3 . It claims to reduce the fuel burn per 100 revenue passenger kilometres (PRKs) year by year as shown in Figure 1. It is stated in the case (O’Higgins. and pollution controls. ** Estimate Legal The last factors are legal ones. EU has restrictions on pilot flying hours to prevent dangerous fatigue. the economies of scale are a barrier. Two main issues are Ryanair’s misleading advertising controversy and the flight security issues concerning pilots flying hours. i. With more environmentally-friendly aircraft developed and introduced with less emission and more efficiency. Porter’s five forces is utilised to evaluate the total attractiveness of Ryanair’s industry. and cannot be ignored (Johnson. resulting in less CO2 emissions by 4%.2 Porter’s five forces framework The impact of the firm’s immediate environment of the surrounding competition is of great importance for strategy making.1.60).The Environmental factors for Ryanair are concerned with noise. just like the 2010 volcano ash cancelation around North European countries. Figure 1 (Source: Ryanair official website) *Includes the adverse effect of a temporary use of inefficient aircraft acquired from Buzz. Barriers to entry the industry are those obstacles the new entrants have to get over to compete successfully.

Although in recent years the biggest rivalry for Ryanair in this sector is easyjet. the loyalty does not exist any longer. sharing an identical external environment. Watching the money value going down. product/process design. The power of those two is quite strong. p. increased flight volume can bring cost efficiency. 2008). Hallas jet in other western European countries has tried to explore in this field. 2. there is high switching cost for airports.with airplanes of the same model in use in Ryanair. an effect of economies of scale can be quoted to achieve cost efficiency (Johnson. supply costs. Those individuals do not have a strong buyer power because they don’t purchase a huge volume. 2010). Hooley et al.1 Cost efficiency The statement by Johnson et al. (2007. the oil dealer. and airport charges.2. the leading position of Ryanair is hard to change currently. which drives access to supply or distribution channels hard to reach. Jet2 in the UK. the threat of substitutes of other transport methods becomes obvious after the economic condition goes bad. The firm continues to “encourage passengers to switch from high fares” carriers (BBC. The identical aircraft type can reduce the cost of pilot training and on board staff. Johnson et al. Ryanair makes good use of process design. The company’s attention has been paid to those four key cost drivers directly or indirectly: economies of scale. since the consumers of Ryanair are chasing the low price. Recent years there are new entrants like bmibaby. The awareness and acknowledgement among consumers of Ryanair is another barrier. especially for those trips like overseas and cross-channel. and experience. Aircraft manufacturers and airports are two major suppliers of Ryanair.45) has also mentioned the firm’s “more people fly more often”: through selected routes with expected traffic growth. some people tend to choose other activities instead of travel. When the routes are of limited number. it set special offers and has its online booking system to decide the offer time and volume to achieve maximum the passenger seated number. The buyers of Ryanair are mostly value hunting passengers. Jobber (2007) has pointed out easyjet increasingly uses shadowing and undercutting the major carriers compared to Ryanair’s point-to-point flights between secondary airports. Scholes. Substitutes still cannot form a huge threat for Ryanair. with high growth rate in no-frills airline and the company’s image. (2008) that a good management of costs is a key strategic capability can prove itself true in Ryanair’s case. The Stellar growth in this sector has attracted over 60 no-frills competitors in the arena (Jobber. When a high volume of output can be achieved to cover the capital input. even in the UK. The airports selection is quite similar— secondary airports are another source to achieve lower cost than its rivals. if there is option of a better offer. 2007). (2008) highlights the strategic capabilities one company owns—they are different and hard to copy or obtain by another. Capacity-fill management is crucial for airline for unfilled seats cannot be “stocked” for subsequent sale (Johnson. As discussed previously the firm is subject to fuel price changes. while the oil suppliers are concentrated suppliers. and airports. Scholes. Mintel’s research has shown the threats of rail to budget airline. 4 . That’s why Ryanair select its airports carefully to earn more passengers with lowest costs. The firm chooses Boeing other than like Airbus is out of it capability for cost cutting.2 Strategic capability analysis We can notice in Europe. as well as maintenance and reparation. 2. However. The suppliers of Ryanair are technology support group and most important. and Goodjet. there are numbers of firms operating as budget airline. yet Ryanair is a superior performer. 2008). & Whittington. and makes differentiation difficulty to provide. & Whittington. Ryanair does not offer unchanged prices. with the advantage of shorter travel time.

Scholes. the popularity of Ryanair will continue to rise over years. Ryanair’s latest annual report shows 8% traffic growth with 16% revenue increase compared with 2009. especially short-haul routes. as unit cost efficiency (fuel burn per unit stated in Figure 1) improvement continues year by year. the analysis aims to indentify the strengths and weakness relevant to its capability to deal with those changes in the environment. & Whittington. and has gained a reputation. stated Pilling (2009).2. Ryanair has realised the situation in the experience curve. 5 . The shrinking pockets of people during recession bring good news to Ryanair. nonunion can affect the business in the long run. The firm’s CEO Michael O’Leary announced that “the dramatic cuts in flights and capacity” by lots of carriers caused decreasing traffic at many of Europe’s major airports.2 SWOT analysis SWOT analysis provides a link between the important factors from the business environment and the organisation’s capability that is to influence the strategy development (Johnson. whose quick turnarounds and check-in facilities are quite welcomed. which create a distinct opportunity for Ryanair. while LCC “meet the increased travel demand for leisure purposes”. there are some key threats Ryanair is facing. In the Europe it has the first-mover advantage. p. The fuel efficiency and less emission environmental-friendly model will be a new trend in airline industry. exchange rates have become a major threat to low-cost strategy. Strengths and Weakness A well-known brand image of low prices established is a greatest advantage for the company. 2008.119). Ancillary income brings big revenue for the company. Efficiency and effectiveness seeking scheme of Ryanair have enabled the firm steps ahead of the industry. However. Ryanair’s traffic grew by 13% as “more consumers switch to Ryanair’s low fares from high competitors”. Ryanair’s operation for over 20 years in Europe as a first mover actually increases the entry barriers. constantly changing business environment factors like fuel prices. Threats As detailed discussion of environment in previous PESTEL and Porter’s five forces analysis. Ryanair’s overall online service simplifies the booking and check-in process. If as planned. New fuel hedging strategy tries to minimize the risk of price changes. Opportunities When Ryanair tries hard to develop new routes. thanks to experience and its reputation. By listing the opportunities and threats in Ryanair’s business environment. The bad image of work environment and pay rates.Experience is also a key factor of Ryanair’s capability after over 20 years operating in this industry. saving staff numbers. Ryanair also “spies opportunities as airports suffer”. 2. According to the firm’s official website news of February 2009. the new join-in EU members provide good opportunities for the company. However. With growing number of passengers gradually accepted the concept. Ryanair’s new long-haul market expansion will bring in more revenues. Various new taxes and duties throw another burden for Ryanair to find out new technological methods to achieve innovation for low cost. Papatheodorou (2008) mentions that these low cost carriers (LCC) “seem to be built both for economic recession and recovery” in that people turn to low price airlines in recession. In addition. These airports reduce charges to earn more businesses. The Continuous improvement to the aircraft fleets enhances the fuel efficiency and on the other hand the same Boeing 737-800 model can reduce training and maintenance costs.

Johnson et al. Nearly 90% of Ryanair passengers saw fare as the sole factor drove them to choose the airline. putting new pressure to the company. Part 3 of this essay will identify those strategic choices with reference to different levels of the company's overall strategies: business level and corporate level strategy will be examined respectively. Also. Ryanair offers “only a very basic product” to match its cost and capability (Shaw. shown in Figure 2. Strategic choices of Ryanair Founded in 1985. of which “it is almost impossible to exaggerate the significance”.1 Strategy clock Deciding top of the majority of customers’’ needs are “bargain fare”. (2005) survey shows the importance of fare with respect to carrier choosing: “the fare constituted the principle reason for choosing a low cost carrier. The competitive strategy of an organisation focuses on the bases on which the business can achieve its competitive advantage in the market (Johnson. 3. As a result. Buyers’ low switching costs means they can choose as they like from numerous budget airlines. the strategic choices during the period to boost its acceptability and popularity are to react to its strategic position as discussed above. which Shaw (2008) sees it as change of the marketing in the sector “at a stroke”. 3. and some of those can apply to Ryanair’s case: the existence of price-sensitive customers and low switching costs between transport options. The company promises to repaid the passenger’s double fare if any competitors offer a lower price at the same time same route.The price of fuel has always been within the upmost consideration. These reactions are no doubt great challenges for Ryanair. Air France has responded by slashing prices on many European flights to compete with added values like free food and drinks (Jobber. operating for over 20 years. Scholes. O’Connell et al. which means the consumers here are bargain chasers. (2008) have stated basis on which the no frills strategy market segment can survive. better quality service. The strategy clock divided the positioning of organisations into different types in a market where consumers are seeking varied value for money. & Whittington.1 Business level strategy On business level. The company will immediately lower the fare if they know someone else’ special offer is better. Being aware of the underlying customer lose due to low 6 . new entrants want to get a share of the big cake of budget airline industry. Keeping cutting fares compounds the pressure to make a profit. a fundamental strategic choice must be made as to which competitive strategy the company should adopt to gain competitive advantage in the market.1. as a result the company must try even harder to find a way out. 3. 2008)—this strategy is best described by Cliff Bowman and Richard D’Aveni’s “No-frills” route in the “market facing” strategy clock. or decide not to choose a higher price. 2008). top of Ryanair’s stated “passenger fares. punctuality and service commitment” is to “offer the lowest fares at all time on all routes”. If the initiation of Ryanair’s low cost strategy is the wisdom of discernment to seek the opportunity. The traditional airline giants like BA. to make sure Ryanair’s fare is the lowest within the industry. 2007). Many people are not willing to pay hundreds of Pounds (or Euros) for a short-haul flight of only one or two hours far. Those bargain seekers include those who cannot afford high prices. These situations can explain the main body of Ryanair’s passengers. the moment Ryanair made the strategic decision to transform itself into the low cost airline (combined with the introduction of other companies alike) is a historic one. the target audience of Ryanair. “No-frills” is primarily concerned with the low price and a low perceived product/sevice benefit.

Figure 2: Ryanair position in strategy clock 3. Statistics from European Low Fares Airline Association (ELFAA) shows in nowadays intra-European flights budget airlines account for over 35% of scheduled traffic. flybe. occupying 28. and keep cost low at the same time. Norwegian Air Shuttle.1. Ryanair adopts three types of strategies mainly: 7 . Vueling.33% *Current airline membership: Blue Air. Wizz Air. Sverige Flyg.1%. Ryanair’s competitive advantage sustainability is to some extent incredible. Ryanair’s choice is smart and somewhat the only one to offer the lowest fare. and the organisation’s 2010 latest figure proclaim Ryanair’s crown over the major no-frills airlines in passenger numbers.com. 2008). Ryanair is an older-established one (Shaw. Figure 3: Passenger Numbers Source: ELFAA Members* Statistics-January 2010 Ryanair. Jet2. 71.67% ALL ELFAA Members.2 A competitive advantage over years Among those low cost airlines. 28. Transavia. Ryanair.com. to carry on the no-frills strategy. easyJet. To maintain a firm’s competitive advantage is of uppermost expectation of the managers. In order to sustain priced-based advantage.switching costs.67% (Figure 3) with closest competitor easyJet 22.

It is shown in Ryanair’s website that in the year 2007. the core product.000 passengers per employee”. in spite of those barriers from big and strong competitors. least mislaid bag accidents are even more difficult to achieve within a limited spending. small staff numbers. and even rule makers. and efficient service. To its stakeholders Ryanair also provide a clear external image. the organisation has managed to “deliver industry leading productivity…with almost 10. 3.the cost reductions are across the whole organisation. It calls on the whole industry to deliver to passengers “what they really need”. And it works for flight giants begin to cut prices to compete. It educates the staffs that it offers low fares. (2008) call “parenting advantage” in the following ways it adds value. the top of those major competitors. or to go with the tide. which refers to the management above the business units and without direct interaction with customers and competitors (Johnson. the corporate parent has shown what Johnson et al.  Low cost structure Ryanair’s 2011 Quarter 1 report revealed that even fuel costs rose by 34%. and therefore with a high percentage of full booked flights the company can achieve an overall high net profit. they will continue to engage themselves in changing the airline industry of Europe to get rid of High Fares. big mission it is doing business in. The company reward the employees for their effort as their statement goes “the more you do the more you get paid”. a ten times better results than major competitors then. it also attack to approach the strategic lock-in position. Scholes. The lowest fare across Europe and no fuel surcharge guarantee are the main message delivered to its passengers. We should notice that while Ryanair makes efforts to hold on its advantage in a defensive position. of which the density of passenger seats help increase the passenger quantity. decisions concerning the corporate level are more crucial to the organisation. The company delivers a belief of a shared revolutionary. The firm’s 2006 free flights campaign is beyond the reach of other airlines. Those key strategies are the concern of the corporate parent.  Special capability that competitors are unlikely to imitate If the low fare is not hard to copy. the costs excluding fuel rose only by 1%-. on punctuality and on key services”. Although Ryanair’s strategy is quite focus without a trace of “diversification” in the definition. According to ELFAA (2010). & Whittington. It even calls on government to change duty and taxation. Ryanair’s daily flights are 1070. the special capability of lowest fare with highest margin is almost impossible to imitate for competitors. 2008 witnesses the victory of Ryanair’s 2001 base agreement in Charleroi with the EU Commissions 2004 dismissed. News reveals that Ryanair forbids its staff charging mobile phone in workplace to reduce power expenditure. airports. It offers what the passengers really need and help them make best value of their money. noise emissions.1 for punctuality. Ryanair also describes itself as the greenest airline with fuel saving measures and low waste. and energy saving measures achieves a low cost business structure.  Clear internal mission and external image As the corporate parent.2 Corporate level strategy Above the level of business units. Another aspect of efficiency is to cut cost from every possible area of operation. Ryanair’s fleet comprises 202 Boeing 737-800 with capacity of 189. Low margins with high sales volume The high oil price and fares cutting squeeze the net margin per seat. its strategic intent for business unit is quite simple and clear—efficiency. 2008). “the real commitments on pricing. 8 . no. The continuous “no fuel surcharges”. The streamline operation through complete online business.

Ryanair has tried to bid twice for Aer Lingus.net data). tools like PESTEL. duty and charges. cost efficient” strategy is response to the top ranking drivers of the environment. mainly the aircrafts are ready for use. instead the current fleet with larger capacity and lower energy consuming (airliners. In the year 2006 and 2008. the new business unit will offer both low fares and a first class competing with giants. Strategy evaluations Strategy evaluation is important to the organisation. Early in 2007. The successful acquisition of Buzz in 2003 helped Ryanair to gain “immediate access to 11 new French regional airports”. According to Part 2 of this essay. so proper evaluation can help it select the best possible fit strategy to develop. and the current “lowest fare. Before 2006 Ryanair’s first step into the no-frills arena is a strategy decision milestone. Strategies should be evaluated in terms of criteria to explore why certain strategies might perform better than other choices. which is quite suitable to the forces in the environment. the firm’s CEO Michael O’Leary has announced Ryanair’s plan of new long-haul airline to the United States. and five forces have been used to identify the environment of Ryanair. Additionally. In 2005 the 737-200 with maximum capacity of 130 all retired. however. Compared with the year 2006 refusal of hedging. and meanwhile defend the competitive advantage and raise the entrant barriers of the arena. according to Ryanair’s website. in the year 2008 the firm began to try hedging to diminish the oil price risk even if the lack of experience has made some wrong decision. and route choosing. In the following part. Operating as a separate branding from Ryanair. Long-haul planning Over years’ successful operation. deepened evaluations will be given as follows to analyse and examine the current strategies of Ryanair with regards to the criteria of suitability and feasibility. Among massive issues to consider. This acquisition is a good example of synergy management of the corporate parent. the plan may be put into effect immediately. customer number (flight capacity and full percentage). 4. SWOT. 4. and also made Ryanair the largest airline at London Stansted Airport. Although in 2010. In the airline industry. For one organisation there is great number of potential alternatives to choose from. O’Leary stated the postpone decision of this plan. The lowest fare promise is the key strategy to attract passengers and boost full flights percentage. Ryanair has experienced rapid expansion across Europe. But the takeover planning was rejected by the Irish government. ELFAA statistics shows the almost unbeatable coverage with 150 destinations and `1000 routes in operation. the periodical evaluation can identify the strategic position changes and the organisation’s capability. Now Ryanair owns 25% of Aer Lingus’s share. key factors should be fuel price. if the facilities. Ryanair has been trying to make its self stronger by take ownership of another company.  Acquisition In order to maintain its competitive advantage for long. 9 . the current strategy goes with the suitability criterion. Ryanair has smartly and precisely discerned the key issues. and is very useful to make strategy modifications. Ryanair’s leading position in fierce competition should also give thanks to its homework done in route choosing.1 Suitability If a strategy addresses the key issues that have been figured out by the strategic position analyses of the organisation. The firm’s consolidation and expansion go hand in hand. more often its competitors. The flight choosing is suitable.

aero announced ryanair’s opening of over 50 new routes in the 2010 Easter week. The selection and purchase volume of aircraft involves many about operation analysis and business forecasting. Ryanair’s new routes occupied over half of those of world’s airlines that week (anna. and its only point-to-point services with no interline connection services.2 Feasibility Feasibility is to question whether the organisation has the capability to put the strategy into effect. economic factors and pressure from competitors give birth to Ryanair’s cost efficiency and low fare business strategies. provide Ryanair the quick reaction ability to the external changes such as political ones. Facts confirm the firm is always prepared to take advantages of those opportunities. 5. News on www. The organisation’s ability to identify the resources and competences that are useful to put the strategy into operation is crucial. detailed exploration of Ryanair’s practical measures to deal with the external pressures and develop itself has found out the secret of the organisation’s success. There are new strategy orientations of Ryanair. 2010).anna. (2008) emphasize the importance of resource deployment of the organisation. Being among the first mover in the European budget airline arena. The company chases the opportunity of deregulation which helped boom the development of the no-frills strategy. The simplified and efficient operation process can both react to the changing environment and minimise its own costs. with its services available at 142 airports across Europe and North Africa. Ryanair have managed to reign over the field for many years. The simplified operation processes. Conclusion There is no invincible general in the battle of business. which are quite feasible for short-haul operation.4. Johnson et al. and the new accession of potential routes. In the second half. The political. especially of new join-in EU countries have been made good use by Ryanair to explore its new market. maintain its leading position in the future. One strategy that Ryanair has chosen to minimize the operation costs is to make complexity simple. Ryanair’s financial feasibility can include the strategy of airline purchase in batches and the employment of minor airports according to its expansion and capability. Whether the company can carry on the lowest fares and continues its profitability. 10 . Furthermore. the enhanced market liberalisation like EU-North Africa. for example the long-haul planning. The essay tries to find out why the organisation can do so.aero. analyses as to the company’s strategic position and its capability are given to figure out the key factors that influence the strategic management. Papatheodorou (2008) has detailed what the firm does—operates “a system of multiple quasi-hubs”. we can wait and see. Notably. We can notice that every change and new purchase Ryanair has taken are quite feasible in terms of it scale and resources—those decision must be under careful considerations. fast and effectively. In the first half.

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