...Ryanair Strategic Analysis And Recommendations For The Future Ryanair is the first budget airline in Europe. Based on the case study of Ryanair by Eleanor O’Higgins, a role of a management consultant is assumed to conduct a strategic analysis on the company. The report consists of the initial Environment Analysis conducted on Ryanair prior to the detailed strategic analysis that will be conducted in the future in order to provide the company with strategic recommendations for the future. The Environmental Analysis conducted consists of both an extensive analysis on the external environment and the internal environment. The external environment analysis is conducted in order to identify the nature of the environment Ryanair operates in and its impact on the strategic situation of the company. Through PESTEL, External factor and Industry analysis conducted, rejection of Aerlingus offer and rules and regulations imposed by governments etc. are recognized as the critical external environmental factor affecting Ryanair’s strategy. An analysis of the internal environment through Value Chain model and SWOT analysis reveals the key issues hindering the strategic success of the firm; poor customer service and human resource problems. While this initial environmental analysis is used to assist the strategic analysis that is to be conducted on Ryanair, the importance of taking necessary actions regarding the critical issues is highlighted, CONTENT EXECUTIVE SUMMARY 1 CONTENT 2 1INTRODUCTION...
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..._Jelm Case 2: Ryanair 1-1-2011 Case 2: Ryanair Authors: Place: Leeuwarden Date: 22th of December2011 School: Education: Module: Strategic Management Year: 3 Version: 1 Word count Core text: 9706 Total: 7932 Table of content Preface 5 1. Summary of Ryanair 6 2. Problem statement 7 3. Corporate Strategy 8 3.1 Strategic development 8 3.1.1 Intended Strategy 8 3.1.2 Emergent Strategy 8 3.1.3 Strategic Lenses 8 4. Organizational Environment 9 4.1 PESTEL Framework 9 4.2 The Five Forces framework 12 5.2.1 The threat of entry 12 5.2.2 The threat of substitutes 12 5.2.3 The power of buyers 12 5.2.4 The power of suppliers 12 5.2.5 Competitive rivalry 13 5. Strategic capability 14 5.1 DuPont Analysis 14 5.2 Robustness 16 6. Competitive Strategy 18 7. Strategic Purpose 20 8. Business Economic Analysis 23 8.1 Liquidity 23 8.2 Solvability 23 8.3 Profitability 24 8.4 Efficiency 24 9. SWOT analysis 25 9.1 SWOT of Ryanair 25 9.1.1 Strengths 26 9.1.2 Weakness 26 9.1.3 Opportunities 26 9.1.3 Threats 26 10. TOWS Analysis 27 11. Alternative courses of action 28 12. Decision and Reasoning 29 9.1 Top 2 Alternatives 29 13. Implementation 30 Literature 31 Figure list 33 Preface The following report is written on behalf of the module Strategic Management, by students of Leisure Management. The case to write this report is “Ryanair” and the strategies that...
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...2. Identify the value stream 3.0.3. Make the value flow through the value stream 3.0.4. Pull the value from the value stream. 3.0.5. Strive for perfection. 3.0.6. The ten rules of lean production. 4.0 The Tools of Lean. 4 4.0.1. Kaizen. 4.0.2. Jidoka. 4.0.3. JIT or Just In Time. 4.0.4. Heijunka. 5.0 Recommendations. 6 6.0 Conclusions. 6 7.0 Bibliography. 7 8.0 Web links. 7 1.0 Summary. In this exercise I have tried to convey the meaning and value of strategy and its importance while constructing a strategic analysis using SWOT, STEP and Porter’s 5 forces. I have also used Porter’s generic strategies model to establish what business we want to be in and have articulated this business model in a vision and mission statement. The target company’s I have used in my exercise is predominantly Ryanair plc. 2.0 Introduction. What is strategy? The term strategy is a military concept and comes from the ancient Greek word “strategia” meaning “office of the general “ or “generalship”. Many of the concepts of strategy have been borrowed from the military and adapted for business. In many ways a business strategy is its battle plan to provide that business with clear objectives and long term goals to ensure the business has a competitive advantage against its business rivals. We’ve often heard the term “everybody likes a good plan”, well strategy is the process of devising and executing a careful...
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...Internal And External Factors Controlling Ryanair Commerce Essay The following report analyses how internal and external factors control to the strategy that Ryanair Plc is following. This report undertakes a detailed study of Ryanair which include a brief outlining of the company’s products and services. Mission, vision and values of the airline will be also explained. It evaluate company’s current strategy and the management of that strategy. It also gives a brief evaluation of Ryanair’s financial structure as well as an environmental analysis of the European airline industry and how this affects Ryanair. Each section of the following report represent the key findings. Introduction to company section includes Ryanair’s background, mission and vision statements, Corporate Social Responsibility policy, company’s stakeholders. External environment section include SWOT analysis. This analysis explain Internal (Strengthens and Weaknesses) and External (Opportunities and Threats) factors. Furthermore, PEST analyse is described. In order to understand company’s profitability in relevance to the competitors, the Porter’s Five Forces framework is used. In Financial sector the turnover , profit margins, operating profit, current ratio, solvency ratio, gearing ratio and the comparability of these during 2006-2008 period is explained. Using the Ansoft’s growth matrix the main strategic direction that Ryanair follow was indentified. The methods of development such as low cost, no-...
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...------------------------------------------------- Ryanair: Strategic Analysis ------------------------------------------------- Ryanair: Strategic Analysis Principles of Marketing and Management Principles of Marketing and Management Table of Contents 1. Executive Summary 2. Issues and Outlook Profile 3. External Analysis 4. Internal Analysis 5. Strategy and Implications from Analysis 6. Action Plan Executive Summary Ryanair is a low-cost Irish airline operating to 178 destinations within the European Union. It’s Chief Executive Officer, Michael O’Leary reported revenues of €3.629 Billion for the fiscal year of 2011, bringing profits of €374.6 Million. As can be seen in the Issues and Outlook Profile, there are a number of issues confronting the firm. Its controversial advertising, employee relations, susceptibility to oil prices and worldwide conflict, and its dependency on its CEO, are all areas which the firm needs to address. The success of the firm has been credited to the fact the company offer the bare minimum services for the cheapest price, negotiate cheap and rewarding contracts with mainly secondary airports, utilise a modern and thus efficient fleet of 291 aircraft, and charge for any additional services which the customer might require. Despite the success of the firm to date there are several areas in which it can improve. Firstly, by continuing its pursuit to purchase Aer Lingus the firm could become one of the largest...
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...Ryanair was set up in 1985 by the Ryan family and transformed the air service market in Ireland by competing with the then more powerful Irish carrier, Aer Lingus. Through its rapid growth, Ryanair has also transformed the airline industry in Europe over the past decade. According to Doganis (2001), Ryanair was indeed the first low-cost, nor frills airline that had an impact on the European airline industry. 1. By using the business model framework, explain how Ryanair managed to reach profitability in the overloaded European airline industry. There are as many definitions of business model as there are authors. Most of them emphasize the link between the concepts “strategy” and “Business Models”. To a certain extent, business model “may be defined as an abstract representation of some aspect of a firm’s strategy” (Seddon et al., 2004, p.440), as the “stories that explain how enterprises work” (Magretta, 2002, p.87). The business model framework encompasses both an external and an internal analysis. External Analysis The External Analysis examines opportunities and threats that exist in the environment in which a firm competes. Opportunities refer to favorable conditions that could produce rewards for the firm if acted upon properly, whereas threats refer to conditions that may prevent the company from reaching its objectives. Both exist independently of the firm. The External Analysis is also known as the PEST Analysis, an acronym for political, economic,...
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...3.1 Competitive Strategy: It is a fact that the competition in global airline industry has increased to the greater extent. As a result, airline companies have to develop and maintain the competitive advantages to attract and maintain the customer portfolio. While reviewing and analysing the competitive strategy of Ryan Air, it is observed that the company is offering the low cost products to its customers (Ryan Air, 2012). In other words, the Ryan Air believes that the low cost services and products is the key ingredient of its success as yet. This product strategy also defines that the company has applied and executed the cost leadership strategy as suggested under the Porter’s Generic Strategies. The aim of Ryan Air through low fare is to stimulate the demand. As a result, it helps the company to attract the travellers those are price conscious, rather than quality (Kahawatte, 2010). However, it does not mean that Ryan Air does not comply with the health & safety regulations, but it only focuses on the basic necessities to avoid extra costs. In addition to the above, the Ryan Air does not bind its customers to book two way tickets which also motivate customers. 3.2 Product Strategy: Developing and executing the appropriate product and service strategy has always been one critical area for Airline companies. Ryan Air, being the cost leadership in the global Airline industry promises to offer the excellent customer services which help it to satisfy the customers’ demands...
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...STRATEGY Compulsory formative assignment RYANAIR – THE LOW FARES AIRLINE CASE STUDY SummaryThe study case invites us to assess the success of Ryanair’s strategy in a highly competitive environment. For this purpose, we will successively evaluate its competitive positioning, its internal competencies, and its sustainability. We will conclude that Ryanair had followed until 2009 a low cost strategy, that its key resources and competences did satisfy such strategy in 2009 and that its principal competitive advantage, namely its position of leader of the low cost airline market, can be regarded as sustainable. | 1484 words (excluding tables) Introduction Ryanair was created in 1985 by Tony Ryan as a conventional airline company aiming at operating flights between Ireland and London. In 1991, financial difficulties led to its transformation into a low cost carrier, with Southwest Airlines as a model. Michael O’Leary was appointed as the Chief Executive Officer of the company soon after. Since then, the company has experienced rapid expansion. It was floated on the Dublin Stock exchange in 1997 and quoted on the NASDASQ in 2002. In 2009, traffic reached 66,5m passengers with a fleet of 232 Boeing 737-800, 41 bases and profit was over €318 m. The study case invites us to evaluate the success of Ryanair’s strategy in a highly competitive environment. For this purpose, we will successively assess its competitive positioning, its internal competencies, and its...
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...INTRODUCTION Background in Brief Ryanair was established by the Ryan family with a staff of 25. Its first route was launched in 1985 with a 15-seat aircraft ferrying passengers between Waterford in Ireland and London. In 1986, Ryanair launched its route from Dublin to London to challenge British Airways and Aer Lingus, the two dominant airline carriers on that route, by offering fares at lower prices. With two routes in operation, Ryanair carried 82,000 passengers in its first full year of operation. By 1993 Ryanair has carried over 1 million passengers. In 1995 Ryanair overtook Aer Lingus and British Airways to become the biggest international scheduled route carrier in Europe. The Organization Today Ryanair now operates more than 1,500 flights per day from 57 bases on 1,500 low fare routes across 28 countries. It connects 178 destinations and operating a fleet of 305 new Boeing 737-800 aircraft. In 2012, Ryanair had a team of more than 8,500 employees and carried over 78 million passengers. Ryanair’s main business is to provide “low-fare-no filling” airline services. Ryanair also offers various ancillary services including in-flight sale of beverages and food, car hire services, internet-related services etc. To expend its network, Ryanair, which already owns 29.82% of Aer Lingus in 2012 announced its intention to acquire Aer Lingus by making an all cash offer of €1.30 per share for its entire share capital. Ryanair recorded a profit of €503 million in 2012...
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...| |Strategic Management : Principles and Practise | |Case Study A : RYANAIR | | | | | | | | | 1- You’re invited to use the Value Chain framework so as to explain the extent to which Ryanair has been able to propose low fares to its passengers. In order to develop a competitive advantage - implementing low fares to its passengers - Ryanair offers a series of activities referred to as the Value Chain, as it is shown in the following diagram: |Firm Infrastructure | |Corporate partnerships | |Human Resource Management...
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...Ryanair – the low-fares airlines Case Study By Sid Hegde Ryanair – the low-fares airline Table of Contents Q1. Why ha s Ryanair been successful thus far? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Q2. Is Ryanair's strategy sustainable? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Q3. Would you recommend any changes to Ryanair's approach? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Q4. Should Ryanair continue to pursue the Aer Lingus bid? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Q5. Evaluate the strategic leadership of Michael O'Leary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Appendix . . . . . . . . . . ...
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...Economic Analysis on Budget Airline—Taking Ryanair as an example . 1. Introduction Ryanair Ltd. is a pioneered Irish low-cost airline, located in Dublin, Ireland. In 2013, Ryanair was both the largest European airline by scheduled passengers carried, and the busiest international airline by passenger numbers, according to its annual report in 2013. From its official website, data shows that Ryanair operates more than 1,600 daily flights from 72 bases, connecting 184 destinations in 30 countries and operating a fleet of more than 300 new Boeing 737-800 aircraft. The latest news about Ryanair could be found on its corporate website (http://corporate.ryanair.com), saying that “Ryanair has recently announced firm orders for a further 280 new Boeing 737 aircraft, as well as options for 100 more Boeing 737 MAX 200s, which will enable Ryanair to lower fares and grow traffic from 90m this year to over 150m p.a. in 2024. Ryanair currently has a team of more than 9,500 highly skilled aviation professionals, and has an industry leading 30-year safety record”. It is a very typical case for economic analysis. The tragic news about the wreckage of Airasia QZ8501 hit the world on 28th Dec 2014, which put the budget airline in the front of the storm again since it is not the first news about airline crash in 2014. Budget airline is elastic in terms of the speed to repose to the demand change and it makes efforts to sell out its all seat using differentiated...
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...Introduction Ryanair is one of the most unique and successful low-cost airlines in Europe. Despite having so many negative associations, it still remains the leader in this market by having the biggest share of customers and flights (European Low Fares Airline Association, 2008). Hence, what are Ryanair brand key secrets making it so successful? The Keller‘s Customer-Based Brand Equity Model incorporated with Pillars of the Brand were used to make an analysis which helped to answer this question. Ryanair brand was analysed according to such components as brand awareness, brand associations (Pillars of the Brand) and brand image. Brand awareness includes the performance of both brand recall and recognition. Evaluating Pillars of the Brand and brand image, the set of both positive and negative associations was sorted out which determines the brand equity of Ryanair. Brand Awareness Measuring awareness helps us to identify how strong the brand is in the mind set of the consumers (Aaker, 1996). Different tests were carried out in order to test the brand recognition of Ryanair . The tests included making the participants identify the Ryanair brand using two cues (Appendix B). In the first exercise the participants were given a set of colours and had to match the colours to the airline. Out of fifteen responses, only three were able to attribute Ryanair with the colour blue. On the other hand, EasyJet was a clear leader in the “colours” battle, due to its strong saturation...
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...Executive Summary Ryanair operates as a cost leader in the European low cost carrier segment of the airline industry. As a cost leader they aim to achieve high volume sales by attracting customers with low prices. As a result of charging some of the lowest prices in the industry, Ryanair has seen growth in traffic and reported record revenues. To remain profitable the company focuses on maintaining low costs and efficient operations. The key issues facing Ryanair include how to remain profitable in light of rising fuel prices and currency exchange risk, the ability to maintain market share and growth in a segment characterized by intense competition, and whether or not it would be profitable to expand into the growing international/emerging markets and internet retailing space. In addressing these key issues, it is recommended that Costco focuses on opportunities in the internet retailing space to grow bottom and top line growth as well as increasing market share. It is also recommended that they remain committed to their low cost high inventory turnover strategy in order to continue to offer consumers the lowest prices and achieve high inventory turnover. By taking these initiating the strategies summarized above, Costco will be able to maintain their position as market leader and continue to operate profitably in the discount membership warehouse segment of the retail industry. Business Model & Strategy Ryanair operates as a cost leader in the low cost...
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...International Business Strategy Name: Institutional affiliation: Date: International Business Strategy Introduction There has been growing concern for the economic interdependence of nations on a global scale. As a result, companies have stepped up the cross-border business transactions in the recent past. Widespread sharing of technology, global economic shifts, and international governance among others, have been the enabling factors. Visionary business leadership has transformed national-level firms into robust multinationals that dispense a wide variety of goods and services to a scale never witnessed before. As many companies yearn to take their business internationally, they face ever-present challenges in the new business arena. Managers, therefore, need to take a keen interest in assessing the corporate strategies to fit the demands of international business so as to maintain their competitive edge and suitably serve the culturally diversified individual and institutional customers. This report analyses a myriad of aspects that multinational companies face in the global provision of goods and services. In its deliberations, the reports deeply evaluate the National Double Diamond model and its later improvement as well as the SAFe criteria that are essential to business leaders in effectively engaging in international business. It gives insight on how the varied features of the international business impact on the business strategy...
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