Strategic Management of Ryanair: Analysis and Recommendations

This report analyzes the strategic management of Ryanair, including its background, external environment analysis, competitors analysis, internal environment analysis, and future directions. It provides recommendations for improving customer support services and airport locations.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Ryanair background Information............................................................................................1
2. External: Airline Industry Analysis:.......................................................................................2
3. Competitors analysis...............................................................................................................3
4 Strategies to analyse the internal environment.........................................................................4
5. Strategic tools to analyse future directions.............................................................................5
6.Suggestion and justification.....................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Ryanair is a low cost airline company established in Ireland and it is one of the largest
airline of Europe that carry huge quantity of passengers that any other airline company.
Moreover, this report will highlight the external environment of the Ryanair which will be
analyzed through PESTLE analysis. Further, the project will highlight the major competitors pf
the company that may affects its revenue. On the flip side the assignment will outline the internal
environment of the company which will be evaluated through SWOT analysis (Büyüközkan and
Ilıcak.2019). Further, the report will frame about the strategic tools for future directions which is
done with the help of Ansoff matrix that will help company to grow its opportunities in existing
and new geographical domains. Moreover, the report will outline the suggestions and
recommendation regarding the service the company should provide to its customers to enhance
their brand image.
MAIN BODY
1. Ryanair background Information
Ryanair airways is founded in 1985 as the cheap cost air carrier service. After the decline
in the service quality and rise in complaints regarding the quality of services led the organization
to adopt the new operational strategy, Always getting better. It was a 3 year plan that will helped
the organization to carry out the operations which will help in proper planning of the services
and carrying out of the operations which will help in improving the service quality, diminishing
the negative publicity and market image of the company. Besides this, the Public relationships
are been improved with the application of the principle of 'Low Fares: Made simple'. This proved
out to be an effective marketing tools that helps in getting the travel fares in budget of its
customers (Steiss, 2019). Different approaches are taken under the AGB approaches to facilitate
the growth and development measures:
 Improving flying experience: The quality of flight and its experience for the passengers
was the prior and foremost challenge for the chosen enterprise. The AGB approach
helped the Ryanair to improve the quality of their flight services and increase customer
goodwill ad satisfaction.

 Using digitization of services: With the advancement of technology and raising use of
mobile based services, Ryanair also adopted and provided its customer with the digital
services like online ticket booking and reserving the seats, communicating other details
and personalize the service as per customers needs (Moutinho and Vargas-Sanchez,
2018).
 Increasing the product portfolio: Ryanair looked after broadening of their product
portfolio and developed specialized services like 'Family Extra' including complete
family trip. Whereas, 'Business plus' aims on meeting the needs of business class
customers.
 Enhancing the services and products: The Firm has not only developed new products
but also improved the quality and feasibility of their existing products. The concentration
on cheaper yet good quality airports and minimizing the fright timings to save fuel cost
are few improvement measures undertaken by the firm. Besides this, proper scheduling of
flights is been observed.
2. External: Airline Industry Analysis:
The external factors affecting aviation industry are:
Political: The strict aviation laws and policies pertaining within different countries will impact
the execution of the policies and services related to plying of flights. High risk factor associated
with death, accidents and other damages along with the insecurities of war is a major external
factor affecting Ryanair and overall aviation industry.
Economic: Post recession factors and decrease in travel based economy in European market are
few of the factors which have affected the fuel and flight prices. As the rate of traveling by air
has declined, it is been proving difficult for organizations like Ryanair to generate good profits.
Social: The gap between constant change in demands of customers needs and demands and the
aviation organizations efforts to meet them is a major social factor that is required to look after
by Ryanair or aviation industry to incorporate positive changes and improve the service quality
(Morden, 2016).
Technological: Airline industry is one of the highly technology based industry. Hence,
organizations like Ryanair are required to adopt suitable technical reforms like mobile based

ticket access and check in facilities that will help in improving the convenience for the
customers.
Environmental: Non renewable fuel is one of the major expanse that is required to be looked
after by aviation firm. The rise in pollution and climate change makes the airlines to look after
the adoption of renewable, environment friendly alternative of the fuel (Ginter, Duncan and
Swayne, 2018). Also, the practice of fuel economic flying and getting aircraft's will low carbon
footprint is required.
Legal: The air traffic and safety measures related to security of passengers will help in proper
development of safe environment for passengers. Also, certain guidelines can be set to determine
the behavior of air staff towards the customers.
3. Competitors analysis
The major competitors of Ryanair are British Airways, Aer Lingus and Virgin Airlines.
Factors Ryanair BA Aer Lingus Virgin Airlines
Ownership Privately owned,
Limited company
Government
Owned
Subsidiary of
International
Airlines Group.
Privately owned
company.
Fleet size 439 276 aircraft's 53 46
Revenue €7.151 billion £11,443 million €1766 million £2,689 million
Destinations
covered
225 183 93 33
On the basis of the assessment of the 3 major competitors of Ryanair, this can be effectively said
that Ryanair is one of the leading Airline enterprise in European market (Rothaermel, 2015).
After the effective implementation of AGB strategy of growth and improvement, the quality of
products and services offered by the organization have been improved and thus, supported the
rise in scales of revenue and operations performed by Ryanair. This will also provide a
competitive advantage to the chosen firm over its rival enterprises in airlines industry in Europe.

4 Strategies to analyse the internal environment
Internal environment of the Ryanair airlines will be evaluated through SWOT analysis, which
will give the overview of the strengths and weaknesses of the Ryanair which will create
competitive advantage for the company and remain successful in their industry.
Strength
Ryanair is the first low cost airline which was established in Europe and have capture
huge market and customer base. Thus, due to its massive size company enjoy economies of scale
in terms of low cost expense which includes low tickets price or it low cost per passenger etc.
However, this factor enable the company to enter into new markets and provide the competitive
advantage to lead the airway industry (McKenna.2018).
Weaknesses
Ryanair provides lower frequencies on its routes and regularly has departures at odd
times rather than the time they suppose to land. Thus, this is a disadvantage for the company for
attracting higher class passengers. Moreover, company have very bad reputation among media
platform because some of their crew members are very rude to their customers, thus the
competitor will take advantage of such weakness provide the best customer service.
Opportunities
Since the company lacks in proper customer service, therefore the Ryanair have to
opportunity to improve its customer service by providing excellent travelers interactions with
their company. Moreover, the company should restructure their website with a greater attractive
look of booking seats, a brand new mobile app of the company and most importantly the removal
of baggage regulations etc.
Threat
Ryanair faces the risk of economic fluctuation as the is the largest brand of Europe that
provide less expensive flights which is convenient for the people during the recession situation of
the country, on the flip side, if the economic condition of the Europe improves then the people of
that country will be willing to spend higher amount on other flights for proper customer service
and thus the demand will lower for Ryanair flights (Dawes.2018).

5. Strategic tools to analyse future directions
Ryanair future growth opportunities can be analysed through Ansoff matrix through which
company can look insight the opportunities to develop their business in new markets with new
services and products.
Market penetration strategy: In this strategy company sell its existing product to existing
customers by additionally improving its services. Moreover, Ryanair provide its products to
existing customer by improving its customer service by providing recruiting the well-mannered
staff that handles the customer queries calmly (Schawel and Billing.2018). Further, the company
should design their airports at the locations which are convenient to reach for general public.
Market development: In this strategy Ryanair will sell its existing products to new
customers and in new geographical areas. Further, the company will provide its low cost and low
fare services to new markets like US and other countries by additionally offering discounts and
seasonal rewards to the passengers of that country like 10% off on their first flight and moreover
they adopt different social media platforms to promote its services in different geographical
locations like Facebook, Instagram, promotions through celebrities etc.
Product development: In this strategy, the company will provide its new products and
services to existing customers like the company will offer discounts of their flights in seasonal
period to existing customers, moreover, company will offer extra facilities to aged passengers
like picking and dropping their luggage etc. Moreover, the company can provide improving their
aircraft design so that it will provide safe journey to their existing customers (Bocken, Fil and
Prabhu.2016).
Diversification: In this strategy Ryanair will provide its new products to its new market
like Ryanair is planning to introduce its new services all through online system in other
geographical locations like US which includes online check in, reserving the premium seats
through their application or their websites and providing automatic dropping of luggages etc.
6.Suggestion and justification
Suggestion
Customer Support Service: From the above discussion it is analyzed that the company
should improve their customer support services by reducing the restraining on baggage policies
and further providing them with better crew so that their queries can be solved. Moreover, the

company should design their airport in the location which is near to cities and is approachable to
citizens (Büyüközkan and Ilıcak.2019). On the flip side, today the customer have a major issue if
they are not reaching on time thus, the company should adopt such service so they the customer
can reach on their destination at a time which was defined by the company.
Justification
From the above suggestion it is concluded that by improving their customer support
service the company can enhance its reputation in media ans among all the citizen worldwide,
thus will enhance its revenue and profits. Further, if the company will structure its airport at the
convenient locations then it will attract more customer to visit to their airports as it will be
convenient for them to reach that location in less time and at lower fuel cost. Moreover, the
company should provide convenient landing time to their customers, as reaching on time is the
major concern for all the passenger, thus by providing this service the company can enhance
their image among the passengers and eventually increases its customer base (Dawes.2018).
CONCLUSION
On the basis of the effective assessment that is been carried out, It can be said that
Ryanair has relatively improved its operations and service quality over the time. The report
covers the details of the company' background with suitable assessment of the external factors
affecting the airline's industry. Suitable competitor's analysis and internal strategies are evaluated
with assessment of various directions. Also, effective strategies are been selected and
justification is been presented that will help in carrying out of operations which will help in
proper rise in understanding of operations carried out by Ryanair.
Certain recommendations can be followed by the organization which will help in carrying
out and improving the overall operations which are been carried out by the chosen enterprise.
Some major recommendations that can be followed by Ryanair are:
 Getting the feedback's from the passengers and other service users which will look after
the proper planning of operations which will lead to improving quality of services.
 Adoption of more fuel efficient aircraft's that will help in proper planning of resources
and reducing the expanses over the consumption of fuel.
 Fright and holding period at Airports can be minimized in order to make the services
more affordable and viable.

REFERENCES
Books and Journals
Bocken, N.M., Fil, A. and Prabhu, J., 2016. Scaling up social businesses in developing
markets. Journal of Cleaner Production.139.pp.295-308.
Büyüközkan, G. and Ilıcak, Ö., 2019. Integrated SWOT analysis with multiple preference
relations: Selection of strategic factors for social media. Kybernetes.48(3). pp.451-470.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
McKenna, E., 2018. Delta Airlines: A Strategic Analysis.
Morden, T., 2016. Principles of strategic management. Routledge.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Schawel, C. and Billing, F., 2018. Ansoff-Matrix. In Top 100 Management Tools (pp. 31-33).
Springer Gabler, Wiesbaden.
Steiss, A.W., 2019. Strategic management for public and nonprofit organizations. Routledge.