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Strategic management - Case Study Example

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Strategic management

It was the time that it started evolving as the world's most profitable airline. Michael O'Leary 's key to success was to drastically cut costs down by taking extra-ordinary decisions. But it was not the only reason of his success. He was also very innovative and shrewd in his approach. His efforts were also supported by state policies of the European countries. The briefs of Financial & operational performance of the company from 1998 to 2002 retrieved from ATI database show a great change in the financial status of the company. The increase in Passengers Revenue was $259.68 millions from 1998 to 2002. Net margins increased from 19.63% to 24.09% during this period.
Number of passengers increased by almost 300% during this period. These were not mean achievements in such a short period of time. But these statistics does not show that how daring was O'Leary in his decision making. He was never afraid of taking unpopular decision and he had complete trust in judgment. As it is famous saying that fortune favours the braves that was the case with him. Fortune also favoured him on many occasions. The difficulties came to his way never deterred him. He went on expansion spree. Ryanair was not only expanded in terms of routes and destinations but he also acquired new planes for his company. The data sheet is give herewith that shows his achievements. Numbers speak louder than words in this case.
RyanAir was successful in controlling total ...
Profit after also risen by 44%. Earnings per share also increased. (Financial performance table is attached as Appendix II retrieved from ATI Database)
A tremendous increase in the profits of the company encourages O'Leary to go on and take more daring decision of acquisition of Buzz Air. It could prove a turning point towards best or worse. As O'Leary promises to make Buzz profitable within three months by "halving fares and doubling passengers". (Part I 475 words)
Strategic Analysis of RyanAir at the end of 2002
Ryanair is considered one of Europe's debatable companies, it policies are appreciated and criticised simultaneously. Some analysts support its commitment to low fares, its revolutionary management. At the same time few analysts attack its labor policies and disapprove its advertising campaign.
It would be quite interesting to use analysis models described by Richard Lynch analyse the Ryanair strategically at the end of year . These models can be applied for a thorough analysis of RyanAir.
Model: Consideration of the nature of the environment (General considerations)
The problems like market recession because of September 11 attacks required a thorough analysis. O'Leary did this very well in comparison to competitors and also with other industries. It helped in assessing the situation correctly into true perspective. His research and evaluation team gave him correct input. The market research was one of the tools used by O'Leary.
A correct and true analysis was the key of success of O'Leary. He understood that although situation is quite turbulent but it can be brought under control. He was able to make correct decisions because of these comparative ...Show more


Ryanair is the airline based in Ireland. It is considered on of the largest low-cost carrier, operating on low-fare routes to most of European countries. It started its journey in 1985 on very small scale. In its initial years it faced quite lot of problems and challenges…
Author : jleffler
Strategic management
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