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Ryanair
Ryanair was founded in 1985 and has become a pioneer of low-cost airline travel in Europe. Through strategic analysis tools like PESTEL, Porter's Five Forces, and evaluating its resources and competencies, Ryanair has pursued a strategy of ultra-low fares by operating efficiently and cutting costs. This strategy has been successfully implemented under the leadership of CEO Michael O'Leary. However, Ryanair faces some critical issues like low customer satisfaction due to reduced services and vulnerability to rising fuel prices that it must continue addressing to maintain its competitive advantage.
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Ryanair
- 1. 12/6/2013 CASE STUDY: RYANAIR EUROPEAN PIONEEROF BUDGET AIRLINE TRAVEL Group -04 Industrial Information technology Business strategy IIT 3512 1
- 2. 12/6/2013 OUTLINE Introduction Analysis tools PESTEL Analysis Porter’sFive forces Competitive strategies Recourse and competencies Strategic Leadership Strategic group Critical issues Conclusion and Recommendations 2
- 3. 12/6/2013 INTRODUCTION Based on thecase 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. 12/6/2013 ANALYSIS TOOLS PESTEL analysis Porter’s Five forces Competitive strategies Resource and competencies Strategic Leadership Strategic group 4
- 5. 12/6/2013 PESTEL ANALYSIS Political: Political stabilityand 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. 12/6/2013 PORTER'S FIVE FORCESANALYSIS 6
- 7. 12/6/2013 COMPETITIVE STRATEGIES Cost efficientoperating 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. 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. 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. 12/6/2013 STRATEGIC LEADERSHIP: MICHAELO’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
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- 13. 12/6/2013 1 2 3 4 5 6 7 8 company name Ryanair Aer Lingus BritishAirways 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. 12/6/2013 CRITICAL ISSUES Low Customerservice 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. 12/6/2013 CONCLUSION 1-Ryanair 2- competitors andmarket 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. 12/6/2013 RECOMMENDATION Increase the customerservice Increase the customer loyalty Should invest on the Information Technology Need day to day updated completive strategy Further reduce the cost 16
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