Analysis of Ryanair

Analysis of the low cost airline industry and internal analysis of Ryanair

Submitted to: Vladan Hadzic
Student ID: 20000910
Module: International Business Management and Strategy
Date: 05 August 2011

CONTENTS
Title Page No
Part one:
PESTEL Analysis
Porters Five Forces
Conclusion
Part two:
Internal Analysis of Ryanair: Strengths & Weaknesses
Value Chain Analysis Of Ryanair
Financial Analysis Of Ryanair
Conclusion
Appendices A) Value chain analysis B) Financial ratios of Ryanair and Easyjet C) Ryanair acquisition of companies and marketing mix
Bibliography

Introduction

Ryanair established in 1985 carrying more than 5,000 passengers between its route Waterford Airport in Ireland to London Gatwick during its first year. The company expanded by 1989 had 350 employees, 14 aircraft and carrying more than 600,000 passengers a year.

In 1997 there were dramatic changes in the European airline industry with deregulation of European Union air transportation allowed airlines to open new routes into Europe. The European Low fares association reported that low fares airlines are carrying more passengers than before with an increasing number of destinations in Europe set to increase from 38% to 53% in European travel (elfaa.com, 2011). Ryanair took advantage from the deregulation with routes from London Stansted to Stockholm, Oslo and Paris. By 2001 Ryanair launched its own travel website and within 3 months received 50,000 bookings (Ryanair.com, 2011).

The report will focus on the low cost industry environment by identifying the opportunities and threats as well as five forces of the external environment. The report will also identify the strengths and weaknesses of Ryanair.

Part 1: Low cost Airline industry
The low cost airline industry has become the most profitable with all segments in the market with low prices and high load factors. This strategy has been challenged since the 1990s with the liberalization

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