Ryanair business plan - 4830 Words

The Use Of Analysis For Ryanair Strategic Maneouveurs Business Essay The purpose of this report is to analyse Ryanair’s strategic position, in addition describing and evaluating its strategies between 2006 and 2010. The first part of the report will include PESTEL, SWOT and Porter’s five forces to evaluate the most important factors that affect Ryanair’s strategic position. Furthermore, at the second part, Ryanair’s corporate and business level strategies will be analysed and evaluated. The Ryanair airline was founded in 1985 as a family business to serve a south Ireland – London Gatwick route. After five years of gradual development Ryanair adopted the successful low fares model of Southwest Airlines (Ryanair, 2010). The adoption of†¦show more content†¦Additionally, one of the methods for cost cutting of LCC is the marginal fuel expenditure. Therefore, as Ryanair faces high risk in its operating costs there is an increased need to hedge this price risk, usually with financial instruments (Done, 2006). The 2008 recession has several and often contradictory implications for Ryanair and its strategy. The recession reduced demand for flights as people either chose cheaper means of transport or reduced their travel. However, LCC faced a lower decrease as passengers abandoned mainly expensive airlines (Mortishead, 2008). Furthermore, Ryanair’s CEO Michael O’Leary argued that LCC will gain benefits from the recession due to increased demand for their services and lower aircraft prices (Woodman and Evans, 2008). Also, recent press publications indicated that the air passenger traffic returned in pre recession levels (Clark, 2010). Concerning monetary issues, the recent decline of the euro will have negative impact in Ryanair’s plans. The Euro declined against the US Dollar from $1.55/â‚ ¬ in late 2008 to $1.20/â‚ ¬ in mid 2010 (Yahoo Finance, 2010). Consequently, US made Boeing which Ryanair uses, will become more expensive (Ryanair, 2010). Also, a study on the pricing strategies of European LCC showed that the fare for the same flight and airline is different depending on the currency in which it is denominated violating the law of one price. Therefore, the airlines have a preference in certainShow MoreRelatedThe Low Cost Airline Model908 Words   |  4 Pagesairline model is a plan of action in the airline industry that is principally centered on expense decrease as the fundamental upper hand (Briody and Ferraro, 2011). The model, which was initially presented in 1978, was a reaction to customer protest to high bills that were being charged by non-contending carriers with high working expenses (Sheth and Sisodia, 2002). Today, most airline carriers have actualized the plan of the business model. It has been demonstrated that executing this plan of action promptsRead MoreCrm Ryanair1380 Words   |  6 Pagesthis paper Ryanair and the Ryanair web site will be used to analyse the eight key perspectives of eCommerce. It will also analyse Ryanair business strategy, marketing strategy, future site development and conclude on same. Ryanair has 37 bases and 950+ low fare routes across 26 countries. Ryanair currently employs a team of more than 7,000 people and expects to carry approximately 66 million passengers in the current fiscal year. (Ryanair 2010) Ryanair are well positioned, their business strategyRead MoreThe Marketing Strategies Of Ryanair1344 Words   |  6 Pagesfocuses on evaluating the current marketing strategies of Ryanair by utilizing marketing theories and concepts. The purpose of this essay is to critically analyze the airline’s marketing position based on various factors and discuss whether Ryanair is doing well in terms of its marketing strategies. During the process of completing this assignment, there were not much problems on researching as there were plenty of information about Ryanair. The only difficulties that I faced was to find the academicRead MoreRyanairs Marketing Strategies1868 Words   |  7 PagesRyanair Marketing Strategies RYANAIR MARKETING STRATEGIES PESTLE Analysis: This section highlights the major forces which are present in the external environment of the company and explains the way they are giving opportunities, posing threats, or impacting its strategies and corporate objectives. PESTLE ANALYSIS a. Political and Governmental Forces b. Economic Forces The political environment is quite favorable for the airline industry in Europe. The European Union has entered into variousRead MoreLooking At The Customer Service Of Ryanair1663 Words   |  7 Pagesoverview of Ryanair In this essay, I will also be looking at the customer service of Ryanair. Ryanair is a low budget ‘no frills’ airline which offer domestic, inbound and outbound flights out of their hub which is Stansted. Ryanair have their headquarters in Swords, Ireland. First founded in 1985 by the Ryan family, with a share capital of just  £1.00. They offered a 15 seated aircraft during the summer months from Waterford, which is in the southeast of Ireland to London Gatwick. In 2013 Ryanair saw 81Read MoreDogfight over Europe, Ryanair B and C Essay1188 Words   |  5 PagesDogfight over Europe RyanAir B / C (individual graded) 1. What went wrong? Why did Ryanair move from a successful launch to near bankruptcy? One of the biggest reasons for Ryanair’s downfall was that it tried to position itself as a low fare airline along with having first-rate services. It kept an unrestricted fare while still focusing on the best customer service and relationship. Although the low price was able to get Ryanair the customer base it needed, the increase in sales was not enoughRead MoreRyanair Macro Environment1737 Words   |  7 PagesConsultancy Report Part 1 Ryanair’s macro and competitive environments Report compiled by: Student: Egle Sukyte Student number: 7124180 Course: Business Management with HRM Unit title: Marketing (MKT 432), Level 2. Table of Contents 1. Introduction.............................................................................1 2. Macro Environment – PESTLE Analysis...............................................1 3.1 Political forces..........................Read MoreRyanair Case Study1619 Words   |  7 Pages Ryanair, originally an Irish low-cost airline and established by the Ryan family in the year of 1984 starting off with only 25 members of staff. Replicating the American Southwest airline business model and then officially relaunched in the year 1990. It has vastly grown from being a single-aircraft family operation into one of the world’s top leading airlines. Now Ryanair has reached 11,458 employees. The airline carries over 131 million passengers per annum on over 2,000 flights daily, from 86Read MoreThe Transatlantic Airline Market Between The United States And Europe1423 Words   |  6 Pagestransatlantic market consists of passengers, both seeking business and pleasure needs. Within the first year of offering transatlantic flights, higher income professionals travelling for business purposes will be targeted, along with families and students travelling on a J-1 visa. As the market is heavily competitive, targeted segments such as families and students will be relatively elastic to a change in price, with hope of finding the best deal. If Ryanair can replicate its hugely successful model, offeringRead MoreRyanair Irish Low Cost Airline: Current Market Position Essay1349 Words   |  6 Pages Ryanair is one of Irish low cost airline, with headquarters in Dublin International Airport and its largest operational bases at Dublin International Airport and London Stansted Airport. It currently employs a team of 5,961 people, comprising over 25 different nationalities.Ryanair began operations in 1985, carrying over 5,000 passengers on its lone route between Waterford Airport (South Eastern Ireland) and London Gatwick in its first year. The company continued to expand over the following years