Strategic Management Approaches and Ryanair's Growth Strategies

This report provides a detailed analysis of Ryanair's strategic management, including the strategy development approaches adopted by the company, such as the prescriptive approach. It examines the strategic leadership style of Ryanair's CEO, focusing on its impact on organizational performance. A SWOT analysis identifies the strengths, weaknesses, opportunities, and threats faced by Ryanair, while Porter's Five Forces model assesses the competitive intensity within the airline industry. The report also explores Ryanair's competitive strategy using Porter's Generic Strategies model and evaluates the growth strategies adopted by Ryanair in Europe using the Ansoff Matrix. The analysis provides insights into Ryanair's strategic decisions and their implications for the company's performance and competitive positioning.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Strategy Development Approaches adopted at Ryanair .................................................................4
Prescriptive or Emergent strategic approach .........................................................................4
Difference between Prescriptive and Emergent Approach:...................................................4
Limitation of Strategic approaches.........................................................................................4
Strategic Approach used by Ryanair:.....................................................................................5
Strategic Leadership of Ryanair's CEO...........................................................................................5
SWOT Analysis to identify the issues faced by Ryanair.................................................................5
Ryanair's response to the challenges .....................................................................................7
Porter's Five Forces Model to analyse the strength ........................................................................7
Ryanair's competitive strategy.........................................................................................................9
Porter's Generic Model ..........................................................................................................9
To assess the growth strategies adopted by Ryanair......................................................................11
ANSOFF Matrix in order to assess the growth strategies adopted by Ryanair in Europe.. .11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and journals...............................................................................................................14

INTRODUCTION
Strategic management is related to the recognising and defining the scheme that an
administrator can carry to accomplish a good presentation and a benefit of competitiveness for
the organisation. It aids in recognising the path in which an organisation is operating for
achieving the objectives of the organisation. It refers to the collection of ideas that an
administrator has to take for contributing in the performance of a company. Ryanair has been
taken as abase company which is founded on 28 November, 1984. this is an Irish ultra lower cost
carrier where everyone can book their flights at a cheap cost. This file covers strategic
approaches, leadership style which can be used by the firm's CEO, SWOT analysis to define the
effectivity, Porter's five forces model to discuss the competitive environment of the firm. This
will also cover the appropriate strategy used by the Ryanair and Ansoff Matrix to assess the
growth strategies (Teece, 2017).

Strategy Development Approaches adopted at Ryanair
Prescriptive or Emergent strategic approach
Prescriptive Approach: In this approach, the firm will deliberately thought and develop a logical
intended scheme in accordance with the precedence and purpose of high management. So this
approach is following a top to down hierarchical format and authorised managerial style.
Emergent Approach: In this approach, it gives the viewpoint of that strategy which is coming
out over a time period as different purposes to clash with and accommodate with the alterations
in the actuality. This approach is a set of human actions or an attitude in the actual planning for
this strategy.
Difference between Prescriptive and Emergent Approach:
Prescriptive Strategy Emergent Strategy
It concentrates on the management and
controlling that is acquiring all the things done.
It concentrates on the opening up the
impression of understanding in a strategical
manner (Chernev, 2018).
It is the systematized procedure in which the
goal in which is described in advancement and
its main parts which has been developed before
commencing the strategy.
It is the procedure in which the final goal is not
decided and its main parts are developed
during the course as the proceeding of strategy
takes place.
Limitation of Strategic approaches
Limitation of Prescriptive Approach:
The disadvantage of this approach is the lack of information which is required to bring
out the analysis of strategy in a systematized way. Also the difficulty in the a systematic
planning as the business surrounding is increasing in a volatile manner through which systematic
planning is becoming very difficult.
Limitation of Emergent Approach: By using this strategic approach, all the administrators are
concentrating on the short term performance not on the long duration one. It also concentrates on
the approach which has no clarity of direction and administrators may feel out of their control or
limits.

Strategic Approach used by Ryanair:
The strategic approach utilised by Ryanair is the Prescriptive approach as it is a long term
strategic thinking where all the goals will be set to accomplish the motives and vision of a firm,
administrators will be inspired to analyse the effect of their decisions, action plans for the best
performance of an organisation (Adams, Freitas and Fontana, 2019). This approach will also
gives the understanding or learning from each other and a suitable place to determine a perfect
strategic position. This will lead to the systematic analysis which makes the organisation to
better organised to fit in the business environment. This will give the better performance and
result to the Ryanair by accomplishing all the goals and objectives, completing all the mission
and vision and the managers also feel very inspiring for the working in the organisation by using
prescriptive strategical approach.
Strategic Leadership of Ryanair's CEO
CEO of Ryanair is following the autocratic leadership style in which O' Leary is taking
all the decisions and recommendations by asking the upper level management only without
doing any of the discussion with the juniors or lower level workers. An individual who is
following this style of leadership will provide a god environment in the firm as these leaders are
very aidful in the conditions where a firm is facing a continuous alterations and dilemmas
(Bieńkowska, Kral and Zabłocka-Kluczka, 2018). It will be capable of reacting to the conditions
very quickly when it is distinguished to the other styles of leadership because of a good structure
of an organisation and a fast capability of making all the decisions. This will definitely give the
benefit to the organisation whenever there is a condition of emergency as this leadership style
will help in making the decision very encourager which results in the team to work in a right
manner.
SWOT Analysis to identify the issues faced by Ryanair
STRENGTH
It is the capacity, the firm can utilise it efficiently to accomplish the goals. It is an
approving activities which is performed inside the organisation, its procedures and attitude of a
firm. In case of Ryanair, it has the lowest cost of units from any of the airline in the world. It is
offering very cheap air transportation for the consumers who are very attentive for the fares. It
targets the consumers who may choose other style of transferral system or not travelling at all

due to the rising of prices of the flights. It also controls point to point airline in a very short
distance (Vetrov, Vandina and Galustov, 2017). This will help the Ryanair to create a very good
business model and increment in the performance of a market. So keeping the price low makes
the Ryanair very successful and can be called as the bigger strength in the business model of this
airline which is a natural benefit for this airline to beat the record.
WEAKNESS
It is an disadvantage or imperfection in the firm that will support it from accomplishing
all its goals. This is an internal concept which work in opposition to the successful result. In
context to Ryanair, relations between the labourers those who are working in the organisation
and alterations in workers for the remuneration arrangements which could effect the business of
this selected firm. Also the expansion of competitive collection may lead to the over capacity in
the upcoming days. As it has positioned itself as a less fare and a safe airline facility which can
be a perceptual experience of the brand and could be a big issue for the airline. Ryanair is
performing in a poor manner with a scope of polls and surveys for many years.
OPPORTUNITY
This is an external factor which advertise the elaboration and used to give the advantage
for the organisation. A company must have a good idea to recognise and identify the
predominant opportunities at a market place which are capable to be actively exploiting them. In
relation to Ryanair, it has a very powerful presence in various countries like UK, Germany, Italy
and so on. And these market places immediate offer various chances in the market for the airline
(Ramli and Soelton, 2018). It has also investigating the opportunities to modify into the other
complemental parts of the air power industry.
THREAT
It involves all the negative impacts that affect the businesses from the outside like the
problems related to the supply chain, shortage in hiring and so on. It is very important to take an
action in opposition to them before becoming the unfortunate person. In context to Ryanair, the
most important threat which the selected organisation is facing is the competition. As with the
growth an development in the market place, there is an entrance of various other competitors in
the market which may influence the profit of Ryanair. It has no control over the rules and
regulations of the government and carries various number of restrictions due to the reason of
covid-19 (Krylov, 2019). Another threat is o9f conducting all its meeting with the outside

customers through online that is video conferencing which will threaten the tax income flow
from the persons who are travelling for a business (Esfahani, Mosadeghrad and Akbarisari,
2018).
Ryanair's response to the challenges
The strategy of Ryanair of keeping the cost low can be a great strength as well as
weakness. This will keep the price at a low-level by making a profitability price reduction and
agreement from the suppliers of a plane and airports. Also, due to the rise in competition level of
the market, Ryanair should improve its strategy and bring some more innovations in the market
to male the production and profit of the firm.
Porter's Five Forces Model to analyse the strength
Porter's five forces model is used to shape the strategy and to recognise the effect on the profit of
the firm. This involves:
Threat of new entrants:
It means to danger of new competitors affects to the already present competitors in an
industry. More the competence in the market place, there is an increment in the production
volume without coincidental increment in the demand of customers that is a less profitability in
the market. In case of Ryanair, new entrants in this airlines will convey the creation, new method
of doing or following all the things and putting pressure on this selected firm by lessening the
pricing strategy, lowering the cost and giving new value to the consumers. Ryanair can invent
new commodities and some services in which it will not only bring down the new consumers
but also give old consumers a reason to purchase the product (Kaliappen and Hilman, 2017).
Bargaining Power of Suppliers:
It means to the force that a businessperson can put on the firms by increasing their costs,
lessening their quality of the things and reducing the presence of their commodities. In case of
Ryanair, as mostly all the firms purchase their raw materials from various supplier in the market
place. Strong suppliers in the service sector of Ryanair utilise their compromising strength to pen
all the high prices. The whole effect of high bargaining power is that it reduce the whole profit of
the Ryanair airlines. It can solve this issue by making an effective supply chain with various
distributors. It has also developed different concentrated suppliers whose firm is interdependent
on the company.

Bargaining Power of Buyers:
It refers to the finding out of strength level in a business. This means to the force a
customer can exert on the firm to get them to give a high quality commodities, good consumer
service and less costs (Goldman, Schlumpf and Scott, 2017). A powerful purchaser of all the
commodities will make a business more competence and decrement in the capability of profit for
the seller which leads to the better service provider in the market. In case of Ryanair, buyers are
very demanding in the market place and in fact they want to purchase the best offerings present
by salaried the low cost as possible which results into putting the pressure in a lengthy way. The
smaller and strong is the base of consumer, the more is the bargaining power of consumers and
high is the capability to search the increment in discounts. This problem can be tackled by
making a large base for all the consumers which will reduce the bargaining power of buyers as
well as it give an opportunity to the company for the whole procedure of sale and its production.
Also by inventing new commodities in a fast way will also lessen the rejection of existing
consumers of the selected organisation to its competence.
Threat of substitute products or services:
A product which is a replaceable commodity from the other firm that gives same
advantages to the customers as the commodities are given by the industry. It will happen when
the firm are pressured to competence with the business gives substitute commodities and
services. In context to Ryanair, when new commodities or service meet a same consumer wants
in variety of manner, profit of a business will experience. Threat will be high if it gives a value
proposition that is very different from the current offerings of the businesses. It can tackle with
this situation by being service bound than just commodity bound. Also by learning the big
requirement of the consumers rather than the consumer is purchasing (Mitrovic, 2019).
Rivalry among the Existing competitors
It refers to the one which is used to identify the competition in an industry. It means to
the degree in which a company react to the competence movement of the other companies in a
business. It means as the number of competition in the market increases and the companies will
become more equivalent in the size and the ability. In relation to Ryanair, if he rivalry between
the currently working employers in an industry is consuming then it will bring down the pricing
and decrease the whole profit of the firm. Ryanair directs in a very competence airline firm and
this competition will take a fee on the whole long duration profit of the industry (Ukil and Akkas,

2017). It can tackle all its issues y making a sustainable differentiation and a scale to make a
competence better in the market place. By making a collaboration with the competition will
increase the size of a market place.
Ryanair's competitive strategy
Porter's Generic Model
Apart from the cost leadership strategy of the company, in order to position itself in the
marketplace, Ryanair has also used Porter's Generic Model which has been very beneficial for
the company (Beiker and Burgelman., 2020). The company positions itself on the basis of the
strengths they possess. The model consists of three generic strategies and each strategy helps the
company in enhancing their competitiveness in the market. It will help the company in having
competitors advantage in the market. The three specific generic strategies are:
Cost leadership:
It refers to the competitive advantage that the company can get in terms of providing
lowest cost of goods and services to their customers. The ways in which the company can get
cost leadership is firstly by decreasing their profit margins and providing goods to customers on
lower prices than competitors and secondly by reducing the cost of the products with the help of
efficiency and increasing the profit margins by keeping the price of the products according to the
average price of market (Chugumbaev and et. al., 2020). In context to Ryanair, the company is
providing cheapest flight options not only in United Kingdom but also in Europe. It is important
for the company to capture the market and as markets are highly price sensitive, it will be
beneficial for the company if they are providing low cost products to their customers.
Differentiation strategy:
It refers to the strategy of the company in which they make the products of the company
somewhat unique and different from the products of competitors. It can be done by the company
with the help of innovation and with the help of changing the features of the products. Another
way of enhancing the product is by adding additional features to the product which is lacking in
the products of competitors. In this strategy the company have to provide information to the
customers as to why their products are superior than the products of competitors. It will help the
company in charging premium prices and will also help in increasing profit margins. In case of
Ryanair, the company restyled its services and shifted the a the first European low fare and no

frill carrier. The the year 1995, they provided scheduled passenger airlines services between UK
and Ireland. Despite of having a large volume of customers the company has faced a loss of IR
£20 million after which the company restyled the model of the company according to the model
of successful American South-west Airlines.
focus strategy:
the companies uses this strategy where they put their focus on a specific niche market and
try to analyse or determine their unique needs of the market and the customer segment of the
market (Kesuma and Sobri., 2020). The company try to achieve the required uniqueness in their
products and then try to make sure that the products of the company are satisfying the needs and
demands of the market segment in which the company wants to enter. The company tends to
build brand loyalty in the market and amongst the customers so that they will be able to create a
strong and loyal customer base in the market. There are two types of focus which the company
put in their products which are given below:
Cost focus: In this strategy the company provide unique product in the market but at a
lower cost. The company try to capture the market with the help of price sensitivity in the
market. It is important for the companies to make sure that they are reducing the cost of their
products in order to be successful in this strategy. In case of Ryanair, the company reduced the
fares of the flights which helped the company in the market. Now the company is the second
largest airlines company in United Kingdom. The company has understood the markets and the
price factors of the market which can help them in having leading position in the market and will
also help them in capturing the market share.
Differentiation focus: In this strategy the company focuses on providing new products to
the customers or try to add any new feature in their products which can satisfy the needs and
demands of the customers currently prevailing in the market (Boev., 2020). In context to
Ryanair, It helped the company in attracting customers and also made sure that the customers of
the company are liking the products and services of the company. It helped them in having
competitors advantage in the market.

To assess the growth strategies adopted by Ryanair
ANSOFF Matrix in order to assess the growth strategies adopted by Ryanair in Europe.
here are four factors in the Ansoff Matrix which helps the company in analysing what are the
next steps that they have to take in order to increase their reach. The matrix helps the companies
in analysing whether they should stay in the market and try to increase their market share or they
should opt for expansion and enter any new market in which they can sell their existing or new
products (Kor and et. al., 2020). In context to Ryanair, the company entered the market of Europe
and the leaders of Ryanair used Ansoff Matrix in order to understand the market and to employ
strategies which can help them in building more sustainable measures. The strategy is named as
Dogfight in Europe. The company is the second largest airlines in United Kingdom as well as in
Europe. The company is providing the cheapest flights to their customers and are also providing
best in class facilities. The company have recently regarded as one of the most punctual flights
between two destinations which is Dublin and London. The four factors of Ansoff Matrix are
given below:
Market penetration : It refers to the strategy in which the company have to increase
their market share from their existing product. In order to enhance the market share of the
company in the existing market, the company can user extensive marketing methods which can
help them in attracting customers and will also help them in in creasing their market share. It is
important for the company to make sure that their products are having proper market and the
potential customers are receiving knowledge about the products of the company. In the case of
Ryanair, the company firstly tried to capture the market with the help of their cost structure. The
company implemented different marketing strategies in their workings so that the company can
have competitors advantage in the home market.
Market development : it refers to the strategy through which the company enters a
completely new market with their existing product. The companies will have to do research work
on the industry or market in which they are thinking about entering (Shaulska and et. al., 2021) .
It will help the company in analysing the potential customers of the market and then the
company will have to make sure that their management is working according to the market
otherwise they may face issues. Ryanair entered the airline industry of Europe with their
existing product and now is working as a company which is providing cheapest flights to their
customers. It is the second largest airline company in United States and Europe.

Product development : it refers to the strategy in which the company launches its new
product in the existing market in order to capture a big market share in the industry. In order to
do so, the company launches products which are according to the taste and preferences of the
customers of the mew market. The company have to do extensive research and have to collect
information from the market about the trends and preferences of the market and then try to make
a product which can suit the market. In order to become successful in this strategy the company
always made sure that they are having cost leadership in the market and has also provided
cheapest flights to the customers.
Diversification : it refers to the strategy of the company in which they enter a completely
new market with their new product. it is considered to be one of the most risky way of entering
new market. As the company does not know the workings of the market in which they are going
to enter and the product is also new (Miragaia and Guedes., 2020). It can be dangerous for the
company and the company may have to suffer huge losses if the customers of market segment of
new market does not like the product ore the product does not fulfil the demands and expectation
of the customers. In case of Ryanair, the company is using this strategy effectively and is having
cost leadership in the market. The company is providing new products but are highly efficient in
their work. The company has launched its 73 new routes and carried over 2 million passengers in
just one moth which depicts the efficiency of the company.

CONCLUSION
It is concluded from the above report that a strategic management is a continuous procedure
which is an important factor in the succeeding of the industry. Companies are required to ensure
about the engagement in a strategical management due to the success of an industry and
surviving which is totally dependent on the strategical management. SWOT analysis, porter's 5
forces and strategy, Ansoff's matrix has helped the firm to describe its effectiveness in the market
and to analyse the performance in the market place. It has also helped in choosing a perfect
leadership style for the main leader who is working in the firm. This will lead to the the good
performance in the market place with the good production and profitability.

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