CORP 2463 MANAGEMENT AND STRATEGY Report of Ryanair Management issue – Poor Customer Service P12006777 TUTOR: George Kokkindis DATE:06/12/2013 Executive Summary This report mainly evaluates the organizational culture and leadership style of Ryanair with the management issue – poor customer service and in relation to management theories. As one of the best low cost airlines‚ Ryanair consistently focus on cost-cutting but at the same time reveal many problems on its Human Resources
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Ryanair Internal analysis Resources and capabilities In 2006 Ryanair was in ownership of a total of 103 Boeing 737 aircraft‚ and also a set order to increase this number by 138 in the next six years. Currently its fleet flies out from 127 destinations. Ryanair replaced its old fleet with new more efficient and environmentally friendly aircraft and has the youngest fleet of any major airline with an age of just 2.4 years. The new aircraft were effective in increasing efficiency as there was no
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Examining Ryanair’s Launch Strategy Ryanair was set up in 1985 by Cathal and Declan Ryan‚ as one of the first independent airline servicing the Dublin-London (Luton) route. Ryanair launched its service focusing on delivering first-rate customer service and lowest – simple‚ single – fare @ I£ 98‚ compared to I£ 208 full fare and I£ 99 discounted fare offered by competition‚ Aer Lingus and British Airways. Ryanair Executives believe that Aer Lingus and British Airways’ flights are typically 60-70%
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Assessment of Ryanair’s launch strategy One possible reason why Ryanair chose to enter the Dublin-London route is because the route was reputed to be quite lucrative for both Aer Lingus and BA. It is easy to see why this route is lucrative because the least expensive fare for both carriers were priced at I£208 but operating expenses per passenger was only I£155.1. Ryanair’s publicized fare of only I£98 will help it to attract more passengers than both carriers given that it cost only half the
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Macro-environment PESTEL Analysis: Political and legal factors Political issues are very relevant in the airline industry which has been and still is under political influence. This is particularly true in the European Union where Ryanair primarily operates. A recent liberalization act came under the form of the EU-US Open Skies Agreement‚ signed in 2007and which entered into effect on March the 30th 2008‚ which gives the right to US based airlines to operate intra-EU flights‚ while European
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What do your overall assessment of Ryanair’s strategy? Although the strategy of Ryanair seems sound‚ I don’t expect it to succeed on the Dublin-London route. By matching service and amenities but pricing well below Air Lingus and BA‚ Ryanair stands to steal customers up to capacity of it’s 44-seat turboprop 4 times a day. This loss of customers‚ though small at this point‚ could likely elicit a strong response from both AL and BA. The Dublin-London route represents one of the few lucrative routes
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Issues Analysis 2 3.0 External Environment Analysis 2 3.1 Analysing the Macro Environment 2 3.1.1 PEST analysis 2 3.2 Industry Analysis 3 3.2.1 Five forces analysis 3 3.2.2 Porters Diamond Model 4 3.2.3 Strategic Group Analysis 4 3.2.4 Industry Life Cycle Analysis 5 3.2.5 Synthesis of External Factors (EFAS) 5 4.0 Internal Analysis 6 4.1 Value Chain Analysis 6 4.2 Internal Factors Analysis Summary (IFAS) 6 4.3 Ratio Analysis 7 5.0
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this executive summary is to give recommendations on Ryanair‚ along with supporting logic for the recommendations. In the following paragraph‚ I will focus on Ryanairs’ strategic analysis‚ game theory application for the strategic analysis‚ and finally give recommendations based on reasonable analysis. Strategic Analysis 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
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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
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International Strategic Management Coursework 2011/12 Case study analysis: Ryanair – the low fares airline: wither now? Executive Summary The purpose of this paper is to use analysis of the airline industry and of Ryanair to highlight the firms’ successes thus far. It also considers the sustainability of the current strategy by viewing the future of the firm and its competitors. Using Porter’s five forces‚ the VRIO framework and the SWOT analysis it gains intimate information on the factors
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