Contents

1. Introduction..................................................................................................................................... 1
2. Strategic position analyses............................................................................................................ 1
2.1 Environment analysis ................................................................................................................. 1
2.1.1

PESTEL analysis .............................................................................................................. 1

2.1.2

Porters five forces framework ........................................................................................ 3

2.2 Strategic capability analysis ...................................................................................................... 4

2.2.1

Cost efficiency .................................................................................................................. 4

2.2.2

SWOT analysis .................................................................................................................. 5

3. Strategic choices of Ryanair .......................................................................................................... 6

3.1 Business level strategy .............................................................................................................. 6
3.1.1

Strategy clock ................................................................................................................... 6

3.1.2

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

1. Introduction
The jungle of business in the airline industry has been reinforced by the introduction of an
innovative ideathe no-frills carriers, which is becoming customers new favourite. Mintel (2008)
noticed those budget airlines have among the chief drivers of intra-European travel growth these
years.
Among low cost airlines, Ryanair, the largest budget airline in Europe (Evans, Campbell, &
Stonehouse, 2003, p.375), is one of the most successful cases. Since its first take-off in 1985,
Ryanair has experienced numbers of strategic modification according to both its environment and
own capability changes, up till nowadays the companys full flight.
This essay is divided into two parts: the first half will examine Ryanairs environment and strategic
capability, and the second half will identify the strategies Ryanair has chosen with regards of the
analyses done previously. The focus is mainly on the period between 2006 and today and some
crucial moments for Ryanair are also mentioned.
2. Strategic position analyses
In Part 2 of this essay, analytical tools are used to analyse the environment and capability of
Ryanair. In the first half, the macro and immediate environment are identified through PESTEL and
Porters framework analyses; in the second half, cost efficiency direction and a SWOT analysis are
given to find out Ryanairs organisation capability.
2.1 Environment analysis
2.1.1 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 businesss decision making but it is beyond the
influence of the business. As to the macro-environment of the company, a PESTEL framework is
utilised to list the influences from the outside.
Johnson et al. (2008, p.55) has quoted that the framework consists of six main elements, namely
Political, Economic, Social, Technological, Environmental and Legal. Among those factors this
budget airline is more likely to be influenced by some key drivers (Johnson, Scholes, & Whittington,
2008, p.56). For Ryanair, such environmental factors have a higher impact on the strategy the
organisation made, such as the government regulations, environmental concerns, and as the low
cost is the key success secret of Ryanair, the company is also vulnerable to the fuel price changes.
Figuring out the fact that the no-frills had been stuck in soaring fuel cost and impending EU
Emissions measures embarrassment, Mintel (2007) questioned whether they should keep prices
low.
Political
Political issues are concerned with the role of government, and this factor is one of the key drivers
Ryanair should take into consideration.
The British increasing air passenger duty for short-haul flights and similar tax in Ireland is predicted
to cause the passenger numbers fall (BBC, 2009). The air passenger duty, set to rise in November
2009 and 2010 respectively, has become another main concern of Ryanair (Mintel, 2009). Also the
ever rocketing airport charges worsen the situation for Ryanair. 2005s new EU regulation of
passenger compensations for delays, cancellations is also expected to bring Ryanair a huge
spending annually. Box and Byus (2005) mentioned that as a non-union operation company based
in Dublin, the trade union pressure from the local government was rather big

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

The Environmental factors for Ryanair are concerned with noise, and pollution controls, and energy
consumption controls. It is stated in the case (OHiggins, 2008) that aviation represents 2.6 per cent
of greenhouse gases emissions in the EU in 2006. With more environmentally-friendly aircraft
developed and introduced with less emission and more efficiency, Ryanair has tried to achieve
beyond the general regulations of EU. It claims to reduce the fuel burn per 100 revenue passenger
kilometres (PRKs) year by year as shown in Figure 1, resulting in less CO2 emissions by 4%.
For the airline industry, the force majeure is another unexpected risk that may cause great losses,
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. ** Estimate
Legal
The last factors are legal ones. Two main issues are Ryanairs misleading advertising controversy
and the flight security issues concerning pilots flying hours. One 2008 CNN news said the firm had
been found guilty of transgressions over two years period. For security concerns, EU has
restrictions on pilot flying hours to prevent dangerous fatigue. Ryanair does business on point to
point flights with quick turnaround; it has to ceiling this hour limit for its pilots to achieve efficiency
(Weston, 2002).
2.1.2 Porters five forces framework
The impact of the firms immediate environment of the surrounding competition is of great
importance for strategy making, and cannot be ignored (Johnson, Scholes, & Whittington, 2008,
p.60). Porters five forces is utilised to evaluate the total attractiveness of Ryanairs industry, i.e. the
low cost airline.
Barriers to entry the industry are those obstacles the new entrants have to get over to compete
successfully. The budget airline industry requires a solid financing back and experience is a plus for
success. Also, the economies of scale are a barrier, as the low fares and high efficiency operation
3

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

Experience is also a key factor of Ryanairs capability after over 20 years operating in this industry.
In the Europe it has the first-mover advantage, and has gained a reputation. In addition, Ryanair
has realised the situation in the experience curve, as unit cost efficiency (fuel burn per unit stated in
Figure 1) improvement continues year by year.
2.2.2 SWOT analysis
SWOT analysis provides a link between the important factors from the business environment and
the organisations capability that is to influence the strategy development (Johnson, Scholes, &
Whittington, 2008, p.119). By listing the opportunities and threats in Ryanairs business environment,
the analysis aims to indentify the strengths and weakness relevant to its capability to deal with those
changes in the environment.
Strengths and Weakness
A well-known brand image of low prices established is a greatest advantage for the company.
Ryanairs operation for over 20 years in Europe as a first mover actually increases the entry barriers,
thanks to experience and its reputation. Ryanairs latest annual report shows 8% traffic growth with
16% revenue increase compared with 2009. 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. Ryanairs overall online service simplifies the booking and check-in
process, saving staff numbers. New fuel hedging strategy tries to minimize the risk of price changes.
Ancillary income brings big revenue for the company.
However, constantly changing business environment factors like fuel prices, exchange rates have
become a major threat to low-cost strategy. The bad image of work environment and pay rates, nonunion can affect the business in the long run. Various new taxes and duties throw another burden
for Ryanair to find out new technological methods to achieve innovation for low cost.
Opportunities
When Ryanair tries hard to develop new routes, the new join-in EU members provide good
opportunities for the company. If as planned, Ryanairs new long-haul market expansion will bring in
more revenues.
Ryanair also spies opportunities as airports suffer, stated Pilling (2009). According to the firms
official website news of February 2009, Ryanairs traffic grew by 13% as more consumers switch to
Ryanairs low fares from high competitors. The shrinking pockets of people during recession bring
good news to Ryanair. The firms CEO Michael OLeary announced that the dramatic cuts in flights
and capacity by lots of carriers caused decreasing traffic at many of Europes major airports. These
airports reduce charges to earn more businesses, which create a distinct opportunity for Ryanair,
whose quick turnarounds and check-in facilities are quite welcomed. However, 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, while LCC meet the increased
travel demand for leisure purposes, especially short-haul routes.
The fuel efficiency and less emission environmental-friendly model will be a new trend in airline
industry. Efficiency and effectiveness seeking scheme of Ryanair have enabled the firm steps
ahead of the industry. With growing number of passengers gradually accepted the concept, the
popularity of Ryanair will continue to rise over years.
Threats
As detailed discussion of environment in previous PESTEL and Porters five forces analysis, there
are some key threats Ryanair is facing.

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

switching costs, to carry on the no-frills strategy, Ryanairs choice is smart and somewhat the only
one to offer the lowest fare, and keep cost low at the same time.
Figure 2: Ryanair position in strategy clock

3.1.2 A competitive advantage over years

Among those low cost airlines, Ryanair is an older-established one (Shaw, 2008). Statistics from
European Low Fares Airline Association (ELFAA) shows in nowadays intra-European flights budget
airlines account for over 35% of scheduled traffic, and the organisations 2010 latest figure proclaim
Ryanairs crown over the major no-frills airlines in passenger numbers, occupying 28.67% (Figure 3)
with closest competitor easyJet 22.1%. Ryanairs competitive advantage sustainability is to some
extent incredible.
Figure 3: Passenger Numbers
Source: ELFAA Members* Statistics-January 2010

Ryanair,
28.67%

ALL ELFAA
Members,
71.33%

*Current airline membership: Blue Air, easyJet, flybe, Jet2.com, Norwegian Air Shuttle,
Ryanair, Sverige Flyg, Transavia.com, Vueling, Wizz Air.
To maintain a firms competitive advantage is of uppermost expectation of the managers. In order to
sustain priced-based advantage, Ryanair adopts three types of strategies mainly:
7

Low margins with high sales volume

The high oil price and fares cutting squeeze the net margin per seat. Ryanairs fleet comprises 202
Boeing 737-800 with capacity of 189, of which the density of passenger seats help increase the
passenger quantity, and therefore with a high percentage of full booked flights the company can
achieve an overall high net profit. According to ELFAA (2010), Ryanairs daily flights are 1070, the
top of those major competitors.

Low cost structure

Ryanairs 2011 Quarter 1 report revealed that even fuel costs rose by 34%, the costs excluding fuel
rose only by 1%-- the cost reductions are across the whole organisation. The streamline operation
through complete online business, small staff numbers, and energy saving measures achieves a
low cost business structure. It is shown in Ryanairs website that in the year 2007, the organisation
has managed to deliver industry leading productivitywith almost 10,000 passengers per
employee, a ten times better results than major competitors then.

Special capability that competitors are unlikely to imitate

If the low fare is not hard to copy, the special capability of lowest fare with highest margin is almost
impossible to imitate for competitors. The firms 2006 free flights campaign is beyond the reach of
other airlines. The continuous no fuel surcharges, no.1 for punctuality, least mislaid bag accidents
are even more difficult to achieve within a limited spending.
We should notice that while Ryanair makes efforts to hold on its advantage in a defensive position,
it also attack to approach the strategic lock-in position. It calls on the whole industry to deliver to
passengers what they really need, the core product, the real commitments on pricing, on
punctuality and on key services. It even calls on government to change duty and taxation. 2008
witnesses the victory of Ryanairs 2001 base agreement in Charleroi with the EU Commissions
2004 dismissed. And it works for flight giants begin to cut prices to compete, or to go with the tide.
3.2 Corporate level strategy
Above the level of business units, decisions concerning the corporate level are more crucial to the
organisation. Those key strategies are the concern of the corporate parent, which refers to the
management above the business units and without direct interaction with customers and
competitors (Johnson, Scholes, & Whittington, 2008).
Although Ryanairs strategy is quite focus without a trace of diversification in the definition, the
corporate parent has shown what Johnson et al. (2008) call parenting advantage in the following
ways it adds value.

Clear internal mission and external image

As the corporate parent, its strategic intent for business unit is quite simple and clearefficiency.
The company reward the employees for their effort as their statement goes the more you do the
more you get paid. It educates the staffs that it offers low fares, and efficient service. The company
delivers a belief of a shared revolutionary, big mission it is doing business in; in spite of those
barriers from big and strong competitors, airports, and even rule makers, they will continue to
engage themselves in changing the airline industry of Europe to get rid of High Fares. Another
aspect of efficiency is to cut cost from every possible area of operation. News reveals that Ryanair
forbids its staff charging mobile phone in workplace to reduce power expenditure.
To its stakeholders Ryanair also provide a clear external image. The lowest fare across Europe and
no fuel surcharge guarantee are the main message delivered to its passengers. It offers what the
passengers really need and help them make best value of their money. Ryanair also describes itself
as the greenest airline with fuel saving measures and low waste, noise emissions.

Long-haul planning

Over years successful operation, Ryanair has experienced rapid expansion across Europe. Early in
2007, the firms CEO Michael OLeary has announced Ryanairs plan of new long-haul airline to the
United States. Operating as a separate branding from Ryanair, the new business unit will offer both
low fares and a first class competing with giants. Although in 2010, OLeary stated the postpone
decision of this plan, however, if the facilities, mainly the aircrafts are ready for use, the plan may be
put into effect immediately.

Acquisition

In order to maintain its competitive advantage for long, Ryanair has been trying to make its self
stronger by take ownership of another company, more often its competitors. The successful
acquisition of Buzz in 2003 helped Ryanair to gain immediate access to 11 new French regional
airports, and also made Ryanair the largest airline at London Stansted Airport, according to
Ryanairs website. This acquisition is a good example of synergy management of the corporate
parent.
In the year 2006 and 2008, Ryanair has tried to bid twice for Aer Lingus. But the takeover planning
was rejected by the Irish government. Now Ryanair owns 25% of Aer Linguss share.
4. Strategy evaluations
Strategy evaluation is important to the organisation. Strategies should be evaluated in terms of
criteria to explore why certain strategies might perform better than other choices. For one
organisation there is great number of potential alternatives to choose from, so proper evaluation can
help it select the best possible fit strategy to develop. Additionally, the periodical evaluation can
identify the strategic position changes and the organisations capability, and is very useful to make
strategy modifications.
In the following part, 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.
4.1 Suitability
If a strategy addresses the key issues that have been figured out by the strategic position analyses
of the organisation, the current strategy goes with the suitability criterion. According to Part 2 of this
essay, tools like PESTEL, SWOT, and five forces have been used to identify the environment of
Ryanair. Among massive issues to consider, Ryanair has smartly and precisely discerned the key
issues, and the current lowest fare, cost efficient strategy is response to the top ranking drivers of
the environment.
In the airline industry, key factors should be fuel price, duty and charges, customer number (flight
capacity and full percentage), and route choosing.
Before 2006 Ryanairs first step into the no-frills arena is a strategy decision milestone. Compared
with the year 2006 refusal of hedging, 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. The flight choosing is
suitable. In 2005 the 737-200 with maximum capacity of 130 all retired, instead the current fleet with
larger capacity and lower energy consuming (airliners.net data). The lowest fare promise is the key
strategy to attract passengers and boost full flights percentage, and meanwhile defend the
competitive advantage and raise the entrant barriers of the arena. Ryanairs leading position in
fierce competition should also give thanks to its homework done in route choosing. ELFAA statistics
shows the almost unbeatable coverage with 150 destinations and `1000 routes in operation. The
firms consolidation and expansion go hand in hand, which is quite suitable to the forces in the
environment.

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

10

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Websites
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