Company Name:

RYANAIR

Group names and ID no:

Strategic business management and planning (Tutor – Taher Khan)
 Student Declaration
We, do hereby certify that all work submitted herein is our own and where  
external sources have been used, they have been appropriately referenced.  
We acknowledge that any attempt at plagiarism will result in our work being
voided and marks forfeited.

NAME I D No’s DATE SIGNATURE

AZEEZ-UR-RAHMAN MOHAMMED 3267 05-05-2010

LOKESH SHARMA 3513 05-05-2010

PUSHKAR RAJ MISHRA 2483 05-05-2010

 
SANDEEP SHARMA 3522 05-05-2010

N.B. This declaration must be completed and attached to the front of the Presentation copy upon
submission. Failure to do so will result in the presentation not being marked.
 RYANAIR
RYANAIR
Fly Cheaper

WORLD’S FAVOURITE AIRLINE

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 Agenda

 Introduction
 SWOT Analysis
 Porter’s 5 forces
 PESTEL Analysis
 Value Chain Analysis
 Conclusion

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Background
 Founded in 1985:
 2 Aircrafts
 Carried 82,000 Passengers
 1991: Michael O’Leary Appointed
 Transformed to Low Cost Airline
 1997: Floated on Dublin SE and Nasdaq
 Rapid Expansion (2005 - 2010 Figures):
 15 Bases(2005) – 41 Bases(2010).
 220 Routes(2005) – 1100+ Bases(2010)
 95--153 Destinations, Across 19--26 European Countries
 27 Million(2005) and 66 Million(2010) Passenger Annually

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VMOST
 Vision:
 To be Europe’s Leading Low Fares Airline
 Objectives:
 Number 1 For Customer Service
 Strategies / Tactics:
 No Frills, Low Cost Approach
 Point-to-point Short Haul Flights
 Regional and Secondary Airports

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Industry Key Success Factors
 Low Ticket Prices
 Frequent Departures
 Possibility of Advanced Reservations
 Reliable Baggage Handling
 Consistent On-time Services

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 RYANAIR: SW
STRENGTHS WEAKNESSES
Low Cost Leader  Low Employee Motivation
Innovative Cost Reductions  Volatile Customer Relations
First-mover Advantage  Antagonistic Relationship with
Established Market Share Competitors
Substantial Growth
Strong Public Image
Established Routes/Network
Range of Ancillary Services

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 RYANAIR: OT
Opportunities Threats
Further Growth  Increased Competition:
Advanced Cost Reduction  New Entrants
Offering Free Flights  Alliances/Mergers Between

EU Expansion
Competitors
Expansion of ELFAA
 Trade Unionism
 Substitute Transportation:
 Cars,
 Trains

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 External Analysis:
Porter’s Five Forces
Threat of New
Entrants

MEDIUM

Industry
Supplier’s Competitors Buyer’s
Bargaining Power Bargaining Power
Rivalry Among
LOW Existing Firms LOW

HIGH

Threat of Substitute
Products

MEDIUM

Source: Adapted from Porter, M. (1998)

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 External Analysis:
Porter’s Five Forces
Threat of New Entrants Industry Competitors
 Limited, but has happened  Increased Competition:
recently:  50 Budget Airlines
 BMIBaby.com  Flag Carriers:
 MyTravelLite.com  Low Cost Affiliates
 Monarch.com  Alliances
 FlyBe.com  Air France / KLM Merger
 Compete on Limited Routes
 Capital Intensive Threat of Substitute Products
 United Kingdom:
 None
 The Rest of Europe
 Driving holidays
 High-speed trains

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 External Analysis:
PESTEL Analysis
• Increased Trade-union Pressure
•Pilot Trade Union
• EU Expansion
• EU Abolishment of Duty-free Sales
• Allegations of Misleading
Advertising
• “Climate Protection Charge”
Political - Legal
SocioCultural
•Grey Market Increase
•Europe: Cars & High-speed Trains
•Increasing travelling lifestyles
•Increasing business travelling
•Fuel Price Increases
•Depreciation of Pound
•EU Commission Rulings:
• Illegal Subsidies from Airports
• Overbooked Passenger Compensation
• Cancelled Flight Compensation
• Reimbursement of Delayed
Passengers
Economic
Environmental-Technological
•Wireless Technology Expansion
•Internet sales/gambling
•Satellite television
• Increased internet competition
•Environmental legislation
•Climate disaster’s like volcanic ash, snow.
•CO2 emmisions and global warming.
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 RYANAIR: VALUE CHAIN
Infrastr. Minimum Corporate HQ
Low Cost Management Performance
HRM Training
Limited Crew
Control In-house Contracts

Ma
Internet Integrated Low Tech Marketing
Tech. Dev. Internet n/a

rgi
Information Systems Internet Sales

n
Proc. Boeing Outsourced Private Low Cost
Discount Alliances
Low Cost
Quality No Frills Quick Promotions
Limited
Training Turnaround Resources
Low Cost* Free Publicity

n
Low Cost Basic/Low Cost

rgi
Reliable Controversial
Suppliers

Ma
Service Internet Sales High
Airport Productivity
Yield
Agreements Management

Inbound Operations Outbound Marketing Service

Logistics Logistics & Sales

Source: Porter , 1985.

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 Online Bookings
 One Class Travel
 Ticketless Boarding
 Unallocated Seats
 Flying to Secondary Airports
 Point-to-Point Flying
 In-house Marketing
 No Frills
 Reduced Turnaround Times
 No Refund Policy
 Corporate Partnerships
* Low Cost
Competitive Advantages
 No Cargo Service
 New Aircrafts
 Owns Own Fleet
 Operations Denominated in
Euro
 Highly Successful Ancillary
Service Offering
 Outsourcing of Services at
International Airports
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* Low Cost
Competitive Advantages (Cont.)
 Limited Airport Transportation
 Advertising on Airplanes
 Uniform Fleet
 High Productivity
 High Service Levels
 General Cost Reductions
 Eliminating seatback pockets
 No blankets or pillows
 Airsickness bags distributed on request
 Charges larger penalties for overweight luggage

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Ryanair: Future Plans
 Publicised Cost Reductions:
 No Window Blinds
 No Reclining Seats, Leather Seats
 Velcro Headrests
 Carry-on Luggage
 Revenue Enhancement:
 Satellite Television
 Internet On-board
 Rented In-flight entertainment
 Ultimate Goal: Free Flights

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Future Recommendations
 Pursue Free Flights
 Third Parties Cover Costs
 Generate Revenue Through Other Means
 3rd Parties to Cover Costs:
 Sponsorships / Advertising
 Airports
 Tourist Boards, National Regions, Councils, etc.
 Holiday Providers (E.g. Euro Disney)

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Conclusion
 Aggressive Growth & Development
 Redefined the European Aviation Industry
 Unique Business Model
 Innovative Cost Reductions
 Consolidate Growth & Expansion
 Enter the Next Phase of Evolution:
 Free Flights
 Create Alternative Means of Revenue
Generation

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Bibliography:

http://www.ryanair.com/doc/investor/present/quarter3_2010.pdf

WWW.SCRIBD.COM/

WWW.DOCSTOC.COM/

PORTER,MICHAEL 1985 Competitive Advantage: Creating and Sustaining

Superior Performance
Porter, M.E. (2008) The Five Competitive Forces That Shape
Strategy, Harvard business Review, January 2008.

http://www.ryanair.com/en/about

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