Preview

Ryanair Holdings, Case Study 14

Powerful Essays
Open Document
Open Document
9004 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ryanair Holdings, Case Study 14
Strategic Management :
Case study: Ryanair Holdings, plc--2011

Contents
Step 1: Company Background 3
Step 2: Develop vision and mission 5
Step 3: opportunities and threats 6
Step 4: Competitive Profile Matrix (CPM) 9
Step 5: External Factor Evaluation (EFE) 10
Step 6: Strengths and weaknesses 13
Step 7: Internal Factor Evaluation (IFE) 15
Step 8 :Prepare a Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, Strategic Position and Action Evaluation (SPACE) Matrix, The Boston Consulting Group (BCG) Matrix and Quantitative Strategic Planning Matrix (QSPM) as appropriate. Give advantages and disadvantages of alternative strategies. 18
Step 9: Recommend specific strategies 37
Step 10 : Projected financial statement and forecasted ratios. 39
Step 11: Specific annual objectives and policies. 45
Step 12 : Recommend procedures for strategy review and evaluation. 48

Ryanair Holdings --- 2011 Step 1 Company Background Ryanair was founded in 1985 and has its headquarters at the Dublin Airport in Ireland. Flights began between Ireland and United Kingdom in 1986 as the new airline’s Dublin-London route challenged the British Airways-Aer Lingus duopoly. After severe financial losses in 1990, Ryanair restructured, adopting the Southwest Airlines business model, and became the pioneer of the low-fares model in Europe. Ryanair Holdings was incorporated in 1996 as a holding company for Ryanair Limited. Today, Ryanair operates more than 1,500 flights per day from 44 bases and across 27 countries, connecting 160 destinations throughout Europe and Morocco.

Ryanair grew from 51 employees in 1985 to more than 8,000 employees today. Based on passengers carried, Ryanair is Europe’s largest low-cost carrier and second-largest airline. It is also the world’s largest carrier of international passengers and the fifth-largest carrier of both international and domestic passengers. As it continues to grow, Ryanair faces challenges in its use of ancillary

You May Also Find These Documents Helpful

  • Best Essays

    Airline and Zara

    • 2445 Words
    • 10 Pages

    Ryanair is one of the world’s favorite airlines operating over 1,500 flights per day from 51 bases on 1,500 low fare routes across 28 countries, connecting over 168 destinations.…

    • 2445 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Easyjet Airlines Summary

    • 707 Words
    • 3 Pages

    Competitive advantage is the ability of business that is hard to be impersonated. (Mooney and New Jersey, 2007,110) Since easyJet is British 2nd largest low cost carrier airlines in Europe, their only main competitors will be Ryanair which is placed on the first. Ryanair is an Irish low-cost airline that offers slightly cheaper air tickets as they land on the secondary airport. Its headquarters is located at Dublin Airport with its primary operational bases at Dublin and London Stansted Airports. According to the report of Top European Low Cost Airlines as of June 2008, easyJet achieved a total of 41.3 million passengers while Ryanair had a total of 53.3 millions passengers which are approximately difference of 10 millions passengers. While comparing easyJet to the third largest company, Flybe, that had only 6.9 millions passengers which created a huge gap between Flybe and easyJet. Hence, Ryanair is the only company that is able to compete with easyJet. (European Low Fare Association, 2008)…

    • 707 Words
    • 3 Pages
    Good Essays
  • Good Essays

    As mentioned before, Europe has around three thousand short-haul airlines meaning that the competition of easyJet can be very wide. Although, the main threat in terms of competition for easyJet is the low-cost Irish company named Ryanair. This company bases its competitive strategy in “cost leadership” approach (supply same service at lower cost) and is double the size of easyJet in terms of profit. It covers the main destinations of Europe offering around 27 different countries and main cities in every country. From 2011 to 2012 Ryanair had an increase in profit after tax of 25% leading to a new record of €503 million. On the other hand, easyJet in 2012 got €255 million of profit after tax (half of Ryanair`s profit).…

    • 528 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14-seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low-fare segment market. It initiated service from London’s secondary airports. In terms of competition, Waterford and Gatwick didn’t pose any challenges.…

    • 982 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Ryanair case

    • 326 Words
    • 2 Pages

    The main strategy for Ryanair is its low cost structure. Ryanair undercut its Dublin-London service at I£98. The reason Ryanair was able to offer low fares was because they only use small aircraft and fly to an airport with lower fees…

    • 326 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The current market is a stabilized market, with a duopoly amongst the two strong players: British Airways and Aer Lingus. Both airlines established routes in the lucrative Dublin - London markets and tap on profits from this route to finance their other less profitable operations. The demand for air travel between the Dublin and London has probably stabilized over the 10 years from the stagnant market share of half million air travelers. Ryanair's strategy is focused on breaking this duopoly with the introduction of Ryanair's low costs and efficient service on the same route. The strategy entails to achieve the following:…

    • 533 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair due to its low costs, some type of change was needed in order to revamp the company. Under a new management team, a major overhaul of the airline was undertaken in 1990/91 and it was relaunched as the first of the new breed of ‘Low Frees/no Frills’(Scribd.com(2009))…

    • 3150 Words
    • 13 Pages
    Best Essays
  • Best Essays

    IntroductionRyanair was founded in July 1985 by the three brothers, Catlan, Declan, and Shane Ryan, with the financial assistant of their father Tony Ryan. As a beginner commercial carrier, its operations began with 25 staff and a single 15-seat turbo-prop commuter plane between Waterford in the southeast of Ireland and Gatwick Airport, the second busiest airport in London after Heathrow. Later on, regulatory authorities permitted the Ryanair Airlines to have at least four flying flights a day on Dublin-London route, with more seating capacity. Nowadays, Ryanair, with its rapid growth, occupies the most sought position in its own field, being "Britain's favorite airline" and the oldest-low cost air carrier in Europe.…

    • 2150 Words
    • 7 Pages
    Best Essays
  • Best Essays

    Ryanair - Economic Analysis

    • 3532 Words
    • 12 Pages

    Ryanair is an Irish airline founded in 1985 by Tony Ryan who teamed up with Christy Ryan and Liam Lonergan to set up the airline (Creaton 2004). The company started off with 5,000 passengers in 1985 and in 2009, they carry over 65 million customers (Airport Watch 2009). In 1991, when Michael O’Leary became the deputy CEO, he developed a strategy heavily influenced by Southwest Airlines in the US, the world 's first low-cost carrier and has posted its first ever profit since it started operating (Vallely 2006). By December 2009, Ryanair is Europe’s leading low cost airline serving 26 countries with 150 destinations and through 1000 routes (ELFAA 2009). As shown in Appendix A, Ryanair is ranked the fifth in Europe for the largest airline company measured by the number of passengers carried (Europa 2010a). Among the low cost carriers in Europe, Ryanair has the biggest market share, accounting for 40% as shown in Appendix B. Besides air flights, Ryanair also provide non-flight services such as car rentals, accommodations, travel insurance, internet-related services and in-flight merchandise sales. These non-flight services have accounted for 20% of Ryanair’s total revenue for the financial year ended 2009 (Annual report 2009).…

    • 3532 Words
    • 12 Pages
    Best Essays
  • Best Essays

    The company chosen in this report is Ryanair in the airline industry. Ryanair is a low cost budget airline travelling across 1600 routes from 57 bases connecting 180 destinations in 29 different countries (Ryanair.com). Ryanair first started its operations in 1985 between Ireland and London. The first year it commuted around 5000 customers but the company really took off in 1990 when Michael O’ Leary was appointed the CEO of the company.…

    • 2421 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Ryanair Case

    • 1374 Words
    • 6 Pages

    After having grown up in the airline industry, the Ryan brothers proved they were able to operate a scheduled airline successfully with their 14 seat flights between southeast Ireland and a secondary London airport. Their strategy was to expand to the Dublin-London route, a known lucrative route for British Airways and Aer Lingus. Ryanair planned to have unrestricted fares priced at I£98, while providing first-rate customer service.…

    • 1374 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    I.INTRODUCTIONThis report outlines the analysis of two low-cost airlines performance in Europe, namely easyJet PLC and Ryanair Hldgs during their financial year between 2006 and 2008. It examines the companies' portfolio, future prospects and competitors to analyse the threats and opportunities facing their business. In conclusion, there is a recommendation whether to invest on easyJet and/or Ryanair's shares.…

    • 1746 Words
    • 6 Pages
    Best Essays
  • Good Essays

    Ryanair Case Study

    • 2763 Words
    • 12 Pages

    What is your assessment of Ryanair’s launch strategy? Is it sensible? Will it succeed? We believe that Ryanair’s launch strategy was successful and we will justify this statement with information that was provided in the Ryanair’s case. To begin with, Ryanair airline was not that hard to establish for Cathal and Declan Ryan because of the capital that Ryanair’s founders managed to get from their father, Tony Ryan, who was a co-founder of Guinness Peat Aviation, which was the largest aircraft leasing company. This was a very good start for the brothers because they did not need to search for investors or convince banks to give them loans, which would probably be very difficult because of the amount of money they needed. Furthermore, we believe that those two brothers were the right persons to make such a big step and establish an airline company because as it was mentioned in the case their father worked in airline industry for a long time, so he had huge experience and he was able to share it with his sons and advise them on certain steps and help them to explore the market from different kinds of perspectives. Another smart choice of them was to start their business with a small plane that had only fourteen seats. We believe it was clever because they spotted the weakness of their competitors in having utility rates of just around two thirds. By having small aircrafts they increased the likelihood of being fully booked and therefore more profitable. Further, they did not spent a lot of money and other resources for the first step just in case it would not work later on and that they would not have huge loses at the very beginning. Also their first plane started to operate between Waterford (southeast of Ireland) and London Gatwick airports and here you can notice that they have chosen secondary airports to operate because we assume they wanted to reduce their cost by going to less crowded airports to save…

    • 2763 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    Ryanair is Europe 's largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines ' business model. Since then Ryanair has grown substantially and successfully. The company currently has 146 routes to 84 destinations in 16 countries, and carries more than 15 million customers annually. Ryanair aims to be Europe 's largest airline in 8 years (www.ryanair.com).…

    • 4400 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    Financial planning

    • 7872 Words
    • 32 Pages

    References: Atrill, P., and McLaney, E. (2009). Management Accounting for Decision Makers. (6th Edn). Essex: Pearson Education Limited.…

    • 7872 Words
    • 32 Pages
    Good Essays

Related Topics