Ryanair Casestudy

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Ryanair – the low-fares airlines
Case Study
By

Sid Hegde

Ryanair – the low-fares airline

Table of Contents Q1. Why has Ryanair been successful thus far?..................................................................3 Q2. Is Ryanair's strategy sustainable?..................................................................................4 Q3. Would you recommend any changes to Ryanair's approach?.......................................5 Q4. Should Ryanair continue to pursue the Aer Lingus bid?..............................................6 Q5. Evaluate the strategic leadership of Michael O'Leary..................................................7 Conclusion...........................................................................................................................8 Bibliography........................................................................................................................9 Appendix............................................................................................................................10 A1. PESTEL Analysis...............................................................................................................10 A2. 5-Forces Analysis...............................................................................................................11 A3. Ryanair SWOT Analysis.....................................................................................................12 A4. TOWS Matrix......................................................................................................................13 A5. Strategic Capability and Competitive Advantage...............................................................13 A6. Stakeholder analysis on Ryanair’s bid for Aer Lingus........................................................14 A7. Ansoff Matrix – Strategic Direction for Ryanair...................................................................14 A8. Growth/Share Matrix (BCG Matrix)....................................................................................15 A9. Strategy Clock – competitive strategy options....................................................................16 A10. VRIO Analysis..................................................................................................................17 A11. Evaluating Ryanair’s Business Strategy ..........................................................................17 A12. Cultural Web....................................................................................................................18 A13. Exercise of Effective Strategic Leadership [2]..................................................................19 A14. Risk Analysis....................................................................................................................20

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Ryanair – the low-fares airline

Q1. Why has Ryanair been successful thus far?
Ryanair’s success can be attributed to quite a few factors



Successful adaptation of Southwest’s low cost model Michael O’Leary studied the low cost model of Southwest and successfully adapted the strategy to suit Ryanair - Flying to secondary cities and airports This is one of the founding cornerstone's of Ryanair’s strategy. By flying to secondary airports, Ryanair avoids huge gate and landing charges charged by the major airports. It also avoids the congestion at the major airports helping it improve the turn-around time for the planes as well as setting the benchmark in on-time arrivals and take-off’s - Point-to-Point flights Flying point-to-point helps Ryanair eliminate a lot of additional operations like baggage transfers etc. helping it to turn-around the planes quite quickly - Single type aircraft Ryanair’s decision to fly only a single type of aircraft has helped it lower it’s maintenance cost. This has also contributed to Ryanair improving it’s organizational memory of it’s maintenance engineers, contributing to innovations...
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