Ryanairs wellknown founder and strong leader michael oleary is personally involved in the company as he managed to guide the airline for the last 17 years. The aims of this thesis is to identify that whether the cost leadership strategy is still. At the heart of any business level strategy is the objective of developing a firmspecific business model that will allow a company to gain a competitive advantage over its rivals in a market or industry. Ryanairs business level strategy free essay example. Ryanair airline business strategies case study example. Ryanair s decision on their costleadership strategy was based on a few main factors which are discussed in this article.
Ryanair strategic position these impressive figures are a result of the holistic implementation of a costoriented business approach and efficient operations. On monday, ryanair is set to reveal a strong set of financial results for the year to the end of march. Ryanairs business level strategy is cost leadership. Ryanair was founded in 1985 as a family business that originally provided full service conventional. Ryanair s low fare business model with challenges the company is facing because of its business model. Ryanair is the largest airline in europe as defined by passenger numbers and is the largest in the world for international passengers. Ryanair flies over 1500 different routes and carried more than 79 million passengers in 2012.
Business strategies are the actions management take to execute a business model. Jan 02, 2012 flemming poulfelt is professor of management and strategy and vice dean at copenhagen business school, and director of lok research center. If you continue browsing the site, you agree to the use of cookies on this website. The paper ryanair airline business strategies is an outstanding example of a business case study. Pdf does cost leadership strategy still work for ryanair. This study is to evaluate the organisational behaviour issues that are faced by one of the most profitable european airlines, which is ryanair, that could lead the airline to a negative market trend in the future. Lombardy region and ryanair joint brand campaign results in bookings increase to milan. In 20 its outspoken ceo, michael oleary, came under increasing pressure to tone down the macho image he. Ryanair since 1994, insolently defended his company against criticism. Understanding ryanairs external environment and industry commerce essay. Ryanair grew to become the most successful lcc on the european continent based on a business model focussed on operational excellence and rigorous discipline. The file will be a locked pdf file, with a do not copy watermark. Ryanairs decision on their costleadership strategy was based on a.
Ryanair strategy is reducing the costs which include personnel, equipment cost, airport access rather than its competitors. Ryanair was founded in 1985 as a family business that originally provided full service conventional scheduled airline services between ireland and the uk. Selection of routes ryanair has made a well thought decision in choosing its routes keeping in mind the criteria like cost, efficient facilities, geographic demographic, strategic. On the surface, this notion appears to be similar to that of strategy. This case study describes ryanairs activity system and the companys key success factor. Understanding ryanairs external environment and industry. Ryanair reveals strategy to be a digital business with an. It gives an insight into the challenges dell faces in india and attempts to answer if dells business model will be successful in india. Ryanair has basic objective low fares and high profit and giving good customer service to the passengers. Information on our website does not constitute part of this annual report. A lowcost business model is a critical element of any rde strategy. Total quality management the low cost strategy has hidden the quality of the service. To attract and retain the customers ryanair has to follow an effective total quality management process. Ryanair is a forwardthinking company with a clear understanding of the digital world and the role it wants to play in it, explained dejan cusic, solutions and services business director.
Question 3 use a modelmatrix of your choice to examine ryanairs price strategy to date. These strategies focus on the core competency of ryanair to ensure that it offers. Ryanairs passenger kilometers grew on average about 45 percent per annum from 1998 to 2003 rynairs key features of low cost business model. Ryanair has seen large success over the recent years due to its lowcost business model and has become the worlds largest airline in terms of international passenger numbers. Objectives of ryanair strategy establish itself as europes leading lowfares. Identifying the main methods implemented by ryanair in cutting price strategy and. The case study shows that ryanair succeeds by closely matching all of its activities to its strategy of maintaining low operating costs. Ryanair case study and strategic analysis an analysis on the competitiveness and lowcost strategy of europes leading lowcost carrier ryanair ba hons christoph muller research paper undergraduate business economics company formation, business plans publish your bachelors or masters thesis, dissertation, term paper or essay. In its latest earnings report pdf, the airline boasted doubledigit percentage growth in passengers, revenue, and profit over the past six months. Its profit margins regularly surpass those of other european airlines. Ryanair holdings robins school of business university of. Flemming poulfelt is professor of management and strategy and vice dean at copenhagen business school, and director of lok research center.
Ryanair and the revolution in lowcost air travel the lowcost airline, pioneered by southwest airlines in the us, offers the passenger a nofrills service at a lower price than the traditional service with food and entertainment which has been the mainstay of the major airline companies. Feb 24, 2014 ryanair strategic management includes company introduction, marketing stratagy etc. Its operational model, which enabled such low cost flying, had as a side effect service that was seen as far below industry norms. Ryanair strategy is reducing the costs which include personnel, equipment cost. On july 12, 2018 the european commission approved ryanairs proposed acquisition of a further 50. The notion of business model has been used by strategy scholars to refer to the logic of the firm, the way it operates and how it creates value for its stakeholders. Ryanair unveils 201718 year 4 always getting better. Ryanair organizational structure figure 1 organizational. In this framework this chapter aims to identify the main features of ryanairs business model, the competitive and the contextual. If an appropriate and effective business development strategy will be associated with the action plans of the business, there will be higher chances of corporate growth, sales improvement, operational. Ryanair launched promotions wherein they offered two million seats for a0.
This management case study in pdf format 15 pages gives an overview of dells business and marketing strategy in india. Ryanair, established in 1985, is one of the biggest airline carriers of europe with 1,600 low fare routes, a workforce of 9,500 and an expected 84,6 million. The development and future strategy of ryanair ryanair became in 2009 the airline company which carry the most passengers in europe. Ryanairs wellknown founder and strong leader michael oleary is personally involved in the company as. May 12, 2016 ryanair is a forwardthinking company with a clear understanding of the digital world and the role it wants to play in it, explained dejan cusic, solutions and services business director.
Business strategy is how a firm develops and sustains a competitive advantage within an industry. Ryanair airline was founded by the ryan family in 1985 to provide passenger services between ireland and the united kingdom uk. Being in business since 1985, it has carved a niche market for itself in being the most widely used low cost airline today. Nokia offers one of the best examples of such a strategy made real. Before we unravel the mystery of ryanairs success, let us briefly look at their financial performance and illustrate what we mean with success. Unlike any other european airline, ryanair dac had long experienced impressive growth and performance thanks to its welldesigned and ruthlessly executed lowcost carrier business model. Ryanair boasts having the best customer service in the industry. The firm wanted to enhance its revenue through ancillary services offered in conjunction with its core airline services. Question 1 identify the main sources of competitive threats in the airline industry and. An analysis of ryanairs corporate strategy publish your. In 20 its outspoken ceo, michael oleary, came under increasing pressure to tone down the macho image he had cultivated and enhance service levels.
The evolution of the european low ryanair case study cyberleninka. Being nice europes biggest budget carrier cuts fees, relaxes restrictions, as it aims to win back customers. That is the result of its strategy which is based on a no frills service in order to offer the lower prices. Ryanair is a very lowcost ireland airline and it is operating to 180 destinations within the european union. On july 12, 2018 the european commission approved ryanair s proposed acquisition of a further 50. Global recession of 2008 definitely affected ryanair in a huge. Ryanair case study and strategic analysis publish your. A case analysis of the organisational behaviour of ryanair.
To win in the developing world, it adapted its business model. Ryanair and the revolution in lowcost air travel the lowcost airline, pioneered by southwest airlines in the us, offers the passenger a nofrills service at a lower price than the traditional service with food and entertainment which has been the mainstay of. Ryanairs business strategy of increasing its market share and profitability through offering competitive prices results in a certain negative impact upon the brand image of the company. We present a conceptual framework to separate and relate business model and strategy.
Functional strategy is the set of decisions made in marketing, operations, finance, research and development, and human. A business development strategy plan mainly focuses on the identification of the business development strategy that the company can use. An analysis of ryanairs corporate strategy executive summary. The ryanair business strategy is one of operational excellence. In march of 20, ryanair and boeing agreed on a transaction of 175 new boeing. He is the author of many articles and books on the subjects of strategy, professional service firms, change management, knowledge management and management consulting.
May 22, 20 ryanair has seen large success over the recent years due to its lowcost business model and has become the worlds largest airline in terms of international passenger numbers. Founded in 1985, it has expanded rapidly capitalising on the opportunity see swot of european deregulation of the air industry in 1997. If you purchase multiple copies of a case study, a pdf file with a license to print the number of copies will be emailed to you, within two hours after the successful completion of the transaction. Ryanairs co2 emissions for january at just 69g per passengerkm. Pdf this chapter refers to two main fields of aviation literature, namely the analysis of the lowcost business model and the study of dynamic pricing. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The reduction of costs lies at the core of the lowcost business model, which aims to offer lower fares, eliminating some comfort and services that were traditionally. Lowcost airlines, business models, deregulation, ryanair 1. And as a result, if ryanair wanted to continue in business, it had to completely change its strategy and revise is goals by figuring out a way in which the perceived added value they could give to the customers was good enough to, later on, capture value from them. Analysts estimate that profits after tax could hit over 1. There are 10 existing directors of ryanair including chief executive officer ceo michael oleary as illustrated in the figure 2. Ryanair analysis swot, pestle etc business essays essay. Ryanair thank you question 2 examine how ryanair are prepared for a future without michael oleary.
Recommendations for ryanairairline industry research. The internal analysis of ryanair, the firm is using the swot technique also highlighted various features of the airline company. Jun 17, 20 ryanair grew to become the most successful lcc on the european continent based on a business model focussed on operational excellence and rigorous discipline. It became an alternative to aer lingus, the state monopoly airline by then. Despite ryanair is holding a strong position in the lowcost market and increases its income every year ryanair annual report, 20, its poor reputation in terms of customer service and job satisfaction the guardian, 2014 may have a negative effect on its success in the future. In this framework this chapter aims to identify the main features of ryanair s business model, the competitive and the contextual. Ryanair strategic management includes company introduction, marketing stratagy etc. New organizational chart of ryanair we have conduct new organizational structure for ryanair that can be used to improve the management in ryanair. Despite media outrage over subpar safety, poor customer service, and controversial business decisions, ryanair has excelled in the european airline industry. As argued by mullins 2010 in the autocratic leadership style the source of power is the. Ryanair unveils 201718 year 4 always getting better plan. Introduction ryanair, established in 1985, is one of the biggest airline carriers of europe with 1,600 low fare routes, a workforce of 9,500 and an. Ryanairs strategy is based on providing a nofrills service with low fares to stimulate demand from budgetconscious travelers. Ryanair strategic management and business planning case study.
1375 1390 385 1657 26 619 345 336 1372 1214 318 117 957 1160 724 66 573 676 497 69 96 1369 157 482 1571 475 157 1195 1201 358 219 1069 1294 32 474 1455 3 723 1159 1195 272 1132