Ryanair has operated as Europe's leading low-cost airline since 1985. The summary focuses on key aspects of the company's strategy formulation. Ryanair aims to offer the lowest fares through frequent, short-haul flights on routes with high potential for growth. The company pursues an overall cost leadership strategy by maintaining a young fleet of fuel-efficient aircraft and keeping operating expenses such as personnel, customer service, and airport fees low. Ryanair's strategic goals center on offering low fares, expanding its route network through market penetration and development, and maximizing profitability with a focus on safety and quality.

1. Ryanair – The Low Fares Airline Strategic ManagementTeam members: Ivan MartinovSabbir S. M.

2. AgendaCompany Overview1Strategic Analysis23Strategy Formulation 4Organizing for Strategy5Conclusion

3. Company Overview1985, first route with daily flights on a 15-seater Bandeirante aircraft, In 1986 launch fare of £99 return, less than half the price of the BA/AerLingus lowest return fare of £209. First European fare warIn 1990, losses of £20m. Adopt Southwest Airlines low fares model. In 1997, Ryanair launches its first four European routesBy 2009, traffic grew to 14% compare to 2008, resulting 66.5m passengers in response of reduced of just €35.Covering 44 bases, 27 countries, 160 airports with 254 Boeing 737-800’s

4. AgendaCompany Overview1Strategic Analysis23Strategy Formulation4Organizing for Stratgy5Conclusion

5. Porter’s Five Forces - Supplier Boeing is main suppliers

6. Only 2 possible suppliers of planes – Boeing and Airbus

7. High switching cost

8. Price of aviation directly related to the price of oilThreat of EntryBuyersSuppliersRegional Airports depends on one airline

9. Bigger airports have competitors of Ryan AirRivalrySubstitutes

10. Porter’s Five Forces – Threat of entry High capital investment

11. Restricted slot availability makes it more difficult to find suitable airports

12. Immediate price war if encroaching on existing LCC route

13. Need for low cost base

14. Flight AuthorizationThreat of EntryBuyersSuppliersRivalrySubstitutes

15. Porter’s Five Forces - BuyersCustomers are price sensitive

16. High Switching tendency

17. Customers know about the cost of supplying the service

18. No loyaltyThreat of EntryBuyersSuppliersRivalrySubstitutes

19. Porter’s Five Forces - Substitutes No brand loyalty of customers

20. No ‘close customer relationship’

21. No switching costs for the customer

22. Other modes of transport: Eurolines, ferries etc.Threat of EntryBuyersSuppliersRivalrySubstitutes

23. Porter’s Five Forces - Rivalry The LCC market is highly competitive

24. Most cost advantages can be copied immediately

25. the two major low-cost airlines have avoided direct head to head competition by choosing different routes to serveThreat of EntryBuyersSuppliers Following Ryanair strategy will create heavy pressure on prices, margins,

26. Price is the main differentiating factorRivalrySubstitutes

27. SWOT Matrix