Ryanair Airline Case study Europe's cheapest airline, best services at the lowest rates Customer Strategic MAnagement, SWAT Analysis, TAWS analysis, PESTEL Analysis, porters 5 force analysis, Value Chain, BCG Matrix,

1. Subject: CSM
Prepared by:
Bhaumik Patel

2. Presentation
Content
Company Overview
CompanyValue
Connecting Service Plans
Root maps
Always Getting Better
Positioning
StrategicAnalysis
SWOT analysis
TOWSAnalysis
PESTELAnalysis
Porter’s 5 Forces
BCG MATRIX
2B. K. School of Professional and Management Studies

3. Company
Overview
Europe’s No. 1 Airline
Low budget airline
Started in 1985
160 airports, 27 countries 1,300+ routes 1,500+ daily departures
Fleet of 275 Boeings
5 main bases:
Stansted (London)
Charleroi (Brussels)
Marseilles
Madrid
Bremen
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4. Company
Overview
Michael O'Leary
Ryanair, CEO
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5. Company
Values
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Mission Ryanair aims to offer low fares that generate increased passenger
traffic while maintaining a continuous focus on cost commitment and
operating efficiencies.
Vision To firmly establish itself as Europe’s leading low-fares scheduled
passenger airline through continued improvements and expanded
offerings of its low-fares service.
Values Ryanair is committed to bring customers the lowest fares and most
on-time flights out in comparison to all competitors. Most importantly
are safety issues, punctuality, near-perfect baggage handling, and the
green policy.
Goals Ryanair plans to increase efficiency and lower costs even further in
comparison to industry rivals.The company wants to become the 2nd
largest international airline.

6. Connecting
Service Plans
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7. Route Map
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8. Route Map
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9. Ryanair’s
Positioning
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10. Competitive
Strategy
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Low Cost Differentiation
Broad
(Industrywide)
Cost
Leadership
Strategy
Differentiation
Strategy
Narrow (Market
Segment)
Cost Focus
Strategy
Differentiation
Focus Strategy
Competitive Advantages
CompetitiveScopes
Low Cost Differentiation
Broad
(Industrywide)
Cost
Leadership
Strategy
Differentiation
Strategy
Narrow (Market
Segment)
Cost Focus
Strategy
Differentiation
Focus Strategy

11. SWOTAnalysis
 Point to Point Flights
 Young, Uniform aircraft fleet
 Cheap Labour outsourced
 Strong Marketing Model
 Innovator in cost reduction
• Poor Customer Services
• PoorWorking Condition
• Bad Public Image
• Market share expansion
• Establish good relationship with
labour union
• Ryanair’s website presence and
modern technology
• Competitive committee
 National Government Laws
 SubstituteTransportation
 Budget AirlineCriticism
 Fuel Price Fluctuation
 Competition
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12. TOWS
MATRIX
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STRENGTHS WEAKNESSES
OPPORTUNITIES
 Market expansion with low fares
 Cross-selling of ancillary products
on the Ryanair Website
 Promote ‘Greening’ Image
o Feedback & complaint section on
Ryanair’s website and replying
THREATS
 Keep Buying new aircrafts to keep
emission costs low
 Provide competitive Prices
 Raise Fares
 Focus on safety issues
 Focus on customer complaints
 Employ more staff to decrease
pressure on employees

13. PESTEL
Analysis
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Political
Strong Political Environment
Open Sky Agreement.
Economical
Uncertainty of fuel cost.
Economical Recession in favour of
Ryanair
Social
Economic environment customer-
Unemployment in January 2012
was 14.2%,
Consumer travel lifestyle and
Demographics
Technological
Internet adaptation/Check-in
Energy efficient engines will
increase
Use ofTrains
Environmental
Controlling noise pollution
Carbon footprint & Global warming
concerns
Legal
Corporate lawsuits
Misleading advertisements

14. Porter 5 Force
Analysis
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1 TheThreat of
Entry
• The low fares industry, especially, with established leading players as
Ryanair, is really hard to enter.
• The entrants need high capital requirements in order to generate high
economies of scale to compete in the European market.
• the factor threat of new entrants is very low.
2 TheThreat of
Substitutes
o The only significant threat is the train service because the other options
are too expensive.
o The disadvantage of trains is the journey time.
o To conclude, the threat of substitute is low.
3 The bargaining
power of buyers
• Customers have a high bargaining power because switching to another
airline is simple and there are no additional expenses.
• An increasing problem is that more and more competitors start to offer
cheap prices, as well.
4 The bargaining
power of
suppliers
o The bargaining power of suppliers is high, as there are only two
manufacturers competing in the aircraft industry. (Boing, Airbus).
o Supplier switching costs are high, as the pilots will need to be retrained
and high capital investments must be made.
5 The extent of
Rivalry between
competitors
• The number of competitors that are trying to imitate Ryanair’s cost
leadership is increasing.
• As the market share of the budget airline is only 30% of the whole airline
industry the market contains the potential to grow.
• As the threat of entry is high the extent of rivalry stays as middle.

15. ValueChain
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16. BCG Matrix
Model
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Market
Growth
Low
High
High Low
Market Share
New Destinations such as
USA, Croatia,etc.
Unknown airports/
destinations
Unfrequently
used. Morocco.
Top Destinations London,
Madrid, Brussels, etc.
Really unfrequently used
destinations.

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