Ryanair

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Case study: RYANAIR European Pioneer of Budget Airline Travel

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Ryanair

  1. 1. 12/6/2013 CASE STUDY: RYANAIR EUROPEAN PIONEER OF BUDGET AIRLINE TRAVEL Group -04 Industrial Information technology Business strategy IIT 3512 1
  2. 2. 12/6/2013 OUTLINE           Introduction Analysis tools PESTEL Analysis Porter’s Five forces Competitive strategies Recourse and competencies Strategic Leadership Strategic group Critical issues Conclusion and Recommendations 2
  3. 3. 12/6/2013 INTRODUCTION Based on the case study by Eleanor O’Higgins  Ryan air was founded in 1985 to travel between Ireland and the UK .  It strategic objective is to offer the lowest possible air fare.  Michael O’ Leary appointed as The CEO.  Used macro environment analysis tool.  3
  4. 4. 12/6/2013 ANALYSIS TOOLS PESTEL analysis  Porter’s Five forces  Competitive strategies  Resource and competencies  Strategic Leadership  Strategic group  4
  5. 5. 12/6/2013 PESTEL ANALYSIS  Political: Political stability and EU expansion Airport Security restriction  Economical: Fuel cost Efficient substitute transport  Social: Consumer life style and demography Frequency traveling  Technological : on-line bookings ancillary services  Environmental :global warming concerns regulations for noise pollution  Legal: New rules by EU 5
  6. 6. 12/6/2013 PORTER'S FIVE FORCES ANALYSIS 6
  7. 7. 12/6/2013 COMPETITIVE STRATEGIES Cost efficient operating strategy.  Boeing 737-800 fuel efficient airplanes.  Flying to secondary airports as point-to-point  Maintain very strong brand name.  High aircraft utilization.  Punctual, high rate of flight completion, low baggage loss  BPR approach thought IT/IS  7
  8. 8. 12/6/2013 RESOURCES AND COMPETENCIES • Resources  Physical Resources – consists of the resources that are needed to operate such as aircraft fleet, headquarter, secondary airports.   Human Resources – company has 2,700 employees. Financial Resources – The financial resources of the company comes from the Ryan Family, shareholders, investors and creditors.  Intellectual Capital – these are the knowledge, skills, abilities and talents that every in Ryanair possesses 8
  9. 9. 12/6/2013 CONTINUES….  Competencies  Innovative cost cutting  maintaining only fewer inventories aircraft maintenance parts and training of maintenance engineers.  Alternative revenue generation  Food and beverages, airport check in, baggage checking and any other additional passenger service 9
  10. 10. 12/6/2013 STRATEGIC LEADERSHIP: MICHAEL O’LEARY       Risk taker Hands-on day-to-day decision maker Enthusiasm and energy Determination and mission orientation Autocratic leadership Exploiting and maintaining core competences 10
  11. 11. 12/6/2013 STRATEGIC GROUP ANALYSIS 11
  12. 12. 12/6/2013 CUSTOMER COMPLAIN ANALYSIS 12
  13. 13. 12/6/2013 1 2 3 4 5 6 7 8 company name Ryanair Aer Lingus British Airways essyjet Luthansa Air France KLM veigin Atiantic Customer Complain 12.7 3.2 6.8 9.3 0.6 3.6 5.9 7.9 Operation Cost 579 814.2 7309 883.4 16742 13
  14. 14. 12/6/2013 CRITICAL ISSUES     Low Customer service satisfaction. -Ryanair has eliminated traditional in-flight services. -Earn profit from such secondary services by charging customers . Fuel Prices -Vulnerable to rising fuel prices Industrial Relations -Unions were not recognize Safety Issues -Poor staff morale 14
  15. 15. 12/6/2013 CONCLUSION 1-Ryanair 2- competitors and market 3-EU airline sector 4-Macrro environment Resource and competencies 04 PESTEL 03 Strategic leadership 01 02 Competitive Strategies Porter’s 5 forces Strategic Group 15
  16. 16. 12/6/2013 RECOMMENDATION Increase the customer service  Increase the customer loyalty  Should invest on the Information Technology  Need day to day updated completive strategy  Further reduce the cost  16
  17. 17. 12/6/2013 THANK YOU 17

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