Preview

Swot Analysis Of Ryan Air

Good Essays
Open Document
Open Document
820 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Swot Analysis Of Ryan Air
The geographic location: Ryan air has 73 operating bases, with major operations in secondary airports across airport.
This is an important valuable resource because airports which are not usual travel destinations are always potential business opportunities thus Ryanair which has bases in many primary and secondary airports has more negotiating power with these airports when discussing slots, fees terms and marketing & training support for as long as 20 years with the airports. Thus operating in secondary airports offers cost saving choices for the airline.
The policy of the airline to serve airports where they are given preferential treatment thereby neutralizing the threat of potential threat is not easily imitable and also makes the resource rare in the sense that it negates perfect competition.
…show more content…
liquidity. The airline made a profit of 2.5 billion dollars between 1998-2009 when most airlines worldwide have been suffering losses and closing or merged with others. Strong ancillary revenues Cheap fares is another resource of the company because more customers are attracted due to lower fares Cost consciousness of the company in maintaining low operating costs and maintenance costs is another financial resource of the firm. When compare with other airlines margins of Ryanair are higher at 28.5% which is also a key resource
The financial resources of the promoters are termed very valuable in cost intensive airline industry because that strong financial capabilities allowed the company to stay afloat, rare because of high costs involved other competitors or potential entrants cannot bear the costs, difficult to imitate because of costs involved or imperfectly imitable and non substitutable because there is no substitute to the required financial investment to enter and operate in the

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Ryan Air Case Analysis

    • 510 Words
    • 3 Pages

    2. Pricing strategy: They are late-movers and therefore can fully utilize low price entry strategy to quickly gain market share. Low fares can also be used to stimulate demand.…

    • 510 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    The airline industry is highly cost-driven creating an extremely competitive environment in which to operate. The majority of customers prefer an inexpensive and hassle-free airline experience; for those business customers who previously paid for the extra features, such as first class, the ability to reduce costs has become more important causing them to consider finding lower priced business class seats or flying coach instead. This trend is referenced in Exhibit 1. The airlines which have focused on building their business model to provide a unique or exceptional flight experience in…

    • 5206 Words
    • 21 Pages
    Best Essays
  • Powerful Essays

    According to a study generated by IBISWorld on the Annual Global Airline industry revenue for 2014, figures were indicated at $745bn with over 9,000 businesses worldwide. From such figures we can infer that global competition in this industry is inevitably high. Such competition is present and can be seen in examples like existing Airline companies such as Etihad and Emirates which offer similar services, packages and prices to its customers. What can be noticed however with the Airline industry is that the threat of new entrants is quite low - this is in large part due to the fact that the Airline business involves a billion dollar investment and high capital (Porter, 2008). It is also a service which although used frequently, in one customer’s life-time; the extent of use may vary depending on many situational factors such as seasonality, business or leisure purposes and so forth. In Australia, the same notion holds in terms of new entrants to the marketplace. Major players in the Australian Airline network include Qantas, Virgin and Jetstar.…

    • 1619 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Jetblue

    • 1546 Words
    • 7 Pages

    This report is aimed to apply financial theories and concepts into analyse the real case study of JetBlue Airline. Firstly, the…

    • 1546 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Essay On Delta Airlines

    • 912 Words
    • 4 Pages

    These companies remained profitable despite all the markets ups and downs, and even after Sept 11/ 2001. Basically, the LCC operated differently from legacy carriers using secondary airports, short turn times, high load factors and different labor costs (flexible work rules vs. profit sharing plans) helping the companies have a much more enthusiastic workforce. All this combined with a different mission and vision, so a different strategic planning is what makes them profitable. LCC don’t use legacy carriers as benchmarks, they don’t even look at them as competitors, because their competitors are cars, buses and other ways of travelling. Even the way tickets are issued is different, and also focused on modern way of life, less burocratic, more self-service and, of course, cheaper. This companies have essential competencies: Values (they created a new way of flying, from the ticket purchasing to to the flying experience), Rare characteristics (they are not regular carriers, they created a whole new market), Hard to copy strategies and operational competency. They launched a new substitute product in an existing market, ending in the creation of a new market, where they have so much competitive advantages that others can’t…

    • 912 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Jet Blue Case Study

    • 1260 Words
    • 6 Pages

    * Customer service oriented (i.e. leather seats with more legroom, in-flight entertainment, better refreshments than competition)…

    • 1260 Words
    • 6 Pages
    Powerful 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

    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
  • Best Essays

    Given the fact that it is a no-frills airline, it is still streets ahead of other low-cost carriers the world over and, in an atmosphere darkened by virtually global recession− where almost every airline is cutting back on staff, leased aircraft, number of sorties per day and skipping low or loss-making sectors− the fact that it has been rarely gone into the…

    • 2731 Words
    • 11 Pages
    Best Essays
  • Good Essays

    The competition is fierce in the airline industry. There are surplus suppliers, many substitutes, and competition bleeds into other industries; therefore, buyers can chose from a wide selection without losing much utility. Consumers can easily choose another airline or chose outside of the industry to fulfill their want to travel. The availability of close substitutes by utilizing another medium to visit or travel, such as video-conferencing, and stay-cations (where consumers decide to stay home and enjoy local fun instead of taking a long, faraway vacation) and the option of not traveling reflect the more elastic demands of the industry.…

    • 659 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Air France Case

    • 940 Words
    • 4 Pages

    Easy access to finance has made it very easy for potential entrants to entre the airline market. In addition, airline industry still enjoys high class status in society, therefore entrance of big corporate houses in this domain is very much probable. Airline industry is mostly dominated by two suppliers Boeing and Airbus. Therefore, airline industry need to rely on these two suppliers for necessary supply. At the same time, on a positive note, there isn’t cutthroat competition among suppliers. The bargaining power of the customers in airline industry is not very high since willingness to purchase the airline ticket does not vary much with reasonably increased priced ticket. Therefore buyer does not put pressure on the airline or the prices of tickets. Airline industry is very competitive industry. This competitiveness in combination with rising fuel costs substantially affects profit margin for the airlines.…

    • 940 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Due to Ryanair's constrained capacity, the long-term increase in demand of air-travelers which switch from other modes of surface transportation would probably be more beneficial to its larger competitors and hence the economies of scale would not considerably bring down the costs. Ryanair would also have a slightly higher operating cost than BA/AL because of their capital expenditure in the new aircraft and training/hiring of staff to operate this new aircraft. With the same level of service and catering in the flight, Ryanair cannot subsidize its costs through its operations. BA also has record operating profits in the industry…

    • 533 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Southwest Airlines is recognised as creating the model for low-cost, low-fare carriers. Its model has been adopted by several airlines hoping to emulate Southwest’s success. Some have taken the model further and adapted it to provide an even lower cost base for their operations. However, it is not clear that any single airline has identified a perfect model. Each has adapted its model to suit its operating environment and strategies. The core elements of any low-cost model are outlined below. , ,…

    • 3056 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    Ryanair has grown exponentially since its emergence in the mid 1980s and has become a leader in the low cost airline industry in the Europe. It is currently now valued at over $10 billion. As of 2011, Ryanair currently had:…

    • 10656 Words
    • 43 Pages
    Powerful Essays
  • Good Essays

    Airline Industry Overview

    • 1521 Words
    • 7 Pages

    History – The airline business has been in existence for over 75 years. There have been many upward and downward swings in the overall airline business economy. History has recorded that while 140 airlines have declared Chapter 11; only two have emerged. Today, the U.S. airline industry is facing an unprecedented financial crisis and the outlook is bleak. Only one major carrier that has shown a profit over the past four years and, in the same timeframe, the other major carriers show a combined total loss in excess of 25 billion dollars. This downward spiral cannot be attributed solely to the 9/11 disaster, many other factors contributed to their downfall.…

    • 1521 Words
    • 7 Pages
    Good Essays