Strategic and Financial Decision

Running head: MANAGEMENT
Strategic and Financial Decision
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MANAGEMENT1
Table of Contents
1. Industry Structure:.......................................................................................................................1
2. Resource and Capabilities:..........................................................................................................2
3. Competitive Advantage:..............................................................................................................3
4. Evaluation of the Competitive Advantage:..................................................................................4
References:......................................................................................................................................6

MANAGEMENT2
1. Industry Structure:
Ryanair has been one of the first budget airline of Europe that has been found in the year
1984 with its headquarters in Dublin Ireland. In the year 2016, Ryanair has been considered one
of the largest low cost airline of Europe in terms of the passengers flown. In fact, the airlines
carried more number of international passengers compared to other airlines (ryanair.com 2019).
The airline operated close to over 400 aircrafts. Ryanair can also be characterized by the rapid
expansion due to deregulation of aviation industry in Europe and the immense success of the low
cost model. The route network of the airline served 38 countries that included North Africa,
Europe and Middle East. Ryanair had close to 13,000 people working for it. Most of the
employees have been contracted and employed by the multiple agencies for flying on the
Ryanair aircraft. The revenue of the airlines rose from close to € 231 million in the year 1998 to
close to € 1843 in the year 2003 and to about €3013 million in the year 2010. Over the same
period, the net profits rose from €48 million to about € 339 million.
As far as the industry structure is concerned, Ryanair has a centralized structure and its
key decision are taken from Ireland (Lawton 2017). The functional heads directly reports to the
CEO, Michael O’ Leary. The international strategy of Ryanair also reflects the centralization
with an extensive transfer of the system, process, resources and structure from the headquarters
to the locations abroad. A deeper change in the strategy implies bigger change in the
organizational structure. The diagrammatic representation of the Ryanair structure is mentioned
as follows:
Possible Question:
What is the Industry Structure of Ryanair? Illustrate with a diagram