StudentShare solutions
Triangle menu

Strategic Management of Ryanair - Case Study Example

Extract of sample
Strategic Management of Ryanair

The increased competition between rivals in the budget airline industry may lead to price wars which will greatly benefit the customers only. "This is why Ryanair has an advantage over other airlines because their policy of bundling low frills and low prices together means that they are competing for the more price sensitive customer." (Sean Brophy and Dominic St. George, 2003)
The demand for short haul flights is ever increasing in Europe. Hence it became important that Ryanair had to take all the benefits of the first mover advantages, since there are many airlines trying to copy the services being provided by Ryanair. Davy (2003) believes that "there are only two pan-European low cost operators where first mover advantage and scale and cost efficiencies gave the two largest players, Ryanair and Easyjet, a significant advantage." The fact remains that after deregulation almost 80 airlines started operating at low cost in the similar lines of Ryanair and 60 of them have since become bankrupt.
According to Michael O'Leary, Ryanair need not bother about the competitive rivalry since according to him "at the lower end of the market Easyjet and Go don't really compete with Ryanair." Ryanair had a distinct competitive advantage in being the cheapest 'no frill' carrier in the Europe. It was possible for the airline to have the lowest costs as they drove down costs in every possible area.
In the matter of competitive rivalry Ryanair has taken away large amount of market share from the rivals Aerlingus and British Airways and to some extent from other airlines. According to Reuters (11th February 2005) "Ryanair also announced it would offer 2 million free seats, a move designed to pressure full-service airlines such as British Airways whose fuel surcharges have widened the gap on fares between budget and traditional airlines. Ryanair is fully hedged until the end of next March and has refused to impose a fuel surcharge, betting that low fares and even free tickets will draw passengers away from rivals." These strategic moves of Ryanair keep a check on the competitive rivalry.
Michael O' Leary said"The more we can put pressure on high-priced airlines, the more we can convince them there's no point competing with us (on short-haul European routes),"
Bargaining Power of Customers:
The customers for the airline industry especially in the budget airline are highly price sensitive.
Switching to another competitive airline is relatively easier and simple thanks to the presence of internet and online booking facilities. The switching also does not entail a higher cost.
The budget airline cannot ...Show more

Summary

The airline was established in the year 1985 with 2 aircrafts and carried 82,000 passengers. In the year 1991 Michael O'Leary took charge of the airline and converted it in to a low cost airline. As per the year 2005 figures the airline had 12 bases, serving 220 routes to 95 destinations across 19 European nations carrying 27 million passengers annually…
Author : yostchristop
Strategic Management of Ryanair essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Strategic Management of Ryanair"
with a personal 20% discount.
Grab the best paper

Related Essays

RYAN AIR THE LOW FAIR AIRLINES
Evaluation of O’Leary’s leadership 12 3.1 Transformational leadership 12 3.2 O’Leary and transformational leadership 12 4. Sustainability of Ryanair’s future strategy 13 5. Conclusion 14 6. Reference list 16 1. Introduction Ryanair faces a multitude of opportunities and dilemmas.
12 pages (3000 words) Case Study
Strategic Management at British Airways
Further it is been found necessary that corporations address the issue of cultural diversity, communication, and training barriers as they manage more diverse workforce (Haines, 2000:p.4). Strategic planning is an involved, intricate and complex process (David, 2006:p18) tailored to the type of organization, can be much simpler and effective (Camillus, 1986:p8).
10 pages (2500 words) Case Study
Marketing Communication Plan of Ryanair
In the 1990s the company enjoyed tremendous success largely due to the thriving capacity of the low cost business model. Unfortunately, in the last few years Ryanair has come under increased media lambasting for alleged inefficiency in service provision (Mulligan, 2008, Creaton, 2007).
8 pages (2000 words) Case Study
Leadership and Management Module
Ryanair was setup in 1985 by Dr.Tony Ryan, an Irish businessperson with a share capital of just 1, and a staff of 25. Their first route was launched in July1985 with daily flights on a 15-seater Bandeirante aircraft, operating daily from Waterford in the southeast of Ireland to London Gatwick.
16 pages (4000 words) Case Study
A Strategic Analysis of Ryanair
It can be seen that the European airline industry has evolved from being dominated by large, business class air carriers to one which is increasingly controlled by the proliferation of low cost airlines. The wide popularity and acceptance of budget air travel which has significantly increased air traffic and gave a boost to the tourism industry has began putting pressure on large airlines to create their own low profile brand in order to regain and retain their market shares.
10 pages (2500 words) Case Study
Business Strategy adopted by Ryanair
It is specializes in low-cost, low-fee airline service to the worldwide customers. Its overall business strategy encompasses a series of in-flight operations. Ryanair has adopted a functionality-based approach to business strategy and decision making in the larger context of corporate expansion, both within the Europe market and other regions.
8 pages (2000 words) Case Study
Ryanair airline
The growth of the airline is expected to continue because of the popularity of low fares, the willingness of passengers to forego traditional airline services in order to avail of low fares and the ability of Ryanair to control and reduce costs. Since the terrorist attacks of September 11th 2001 along with economic slowdown, the Iraq war and SARS, the aviation industry has suffered a deep slump, particularly in flag airlines.
12 pages (3000 words) Case Study
Case Analysis on Ryan Air
The mitigating factors which created these sales slippages involved changing consumer behaviours, vast levels of competition (especially in the UK market) and even a need to change strategic orientation. Ryanair's no-frills service mentality involves maintaining low-cost fares, such as offering no meal options or extended service elements such as beverage consumption, thus keeping labour-related costs low and inviting the more humble or thrifty consumer to enjoy travel to regional destinations without the worry of excessive airline expense.
11 pages (2750 words) Case Study
Strategic management
It was quite difficult to make Ryanair profitable until its management was taken over by Michael O'Leary. Michael O'Leary proved to be a good leader and entrepreneur. He took some very unpopular and decisions, but most of them proved more than useful for the company.
14 pages (3500 words) Case Study
Strategic Financial Management Case Study
Because of the current instability in commodity and oil prices and in interest and exchange rates, however, it has become difficult to attach an accurate value to companies. There are just too many variables and blind corners that could lead an equity valuation astray.
13 pages (3250 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation