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Business Strategy of Ryan Air - Case Study Example

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Case Study
Pages 6 (1506 words)


The objective of this study is to look at the current business strategy adopted by Ryan Air - Europe's largest low-cost carrier and how it should further move towards its growth in future. In the following sections, we will take a brief look at the history and background of the airlines…

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Business Strategy of Ryan Air

An Irish airline – it has its headquarters in Dublin and its biggest operational base is London Stansted Airport in UK. Ryanair has profited immensely due to the deregulation of the air industry in Europe in 1997and has undergone rapid growth to become on of the leading names in the industry. But its rapid expansion has been characterized by the numerous controversies and complaints about its functioning. In October 2006, Ryanair was voted the world's most disliked airline in a survey by the TripAdvisor website, and in November 2006, it was revealed as the subject of more complaints than any other airline in the EU. (Irish Examiner, 2006-11-28)
But this aside, it has evolved into one of the most profitable low-cost airlines in the world. EasyJet, Monarch Airlines, Centralwings, Air Berlin etc. are the main low-cost competitors for Ryan Air.
Business strategy or the long-term business plan is typically characterized by major resource issues or their allocations in an organization. there are two main categories of strategies that are usually followed by the companies ---- the Generic (general) strategies, and Competitive strategies. Some of the generic strategies are:
a. Growth or the expansion of the company by purchasing new assets or developing new products.
b. Globalization – Going international that is -- moving operations into more countries – becoming multinational companies.
c. Retrenchment --- This is typically characterized by focusing on the core business by cutting down on ancillary plans.
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