BBS003-1: Ryanair Case Study - Strategic Issues and Recommendations

This report offers a comprehensive analysis of Ryanair's strategic issues, challenges, and recommendations. It begins with an introduction to the airline, followed by a summary of the case study and identification of critical issues, including cost structure and market competition. The report then delves into a PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors impacting Ryanair. Recommendations are provided, focusing on quality management, customer relationship management, and corporate social responsibility. The report concludes by summarizing the key findings and emphasizing the importance of strategic adaptation for Ryanair's continued success. The report is supported by references to academic sources and industry publications.

Running Head: RYAN SIR STRATEGIC ISSUES AND RECOMMENDATIONS
Ryan Air Strategic Issues and Recommendations
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1RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
Table of Contents
Introduction......................................................................................................................................2
Summary of the Case Study............................................................................................................2
Critical Issues and Challenges Faced by Ryan Air..........................................................................3
PESTEL Analysis of Ryan Air........................................................................................................5
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

2RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
Introduction
The following report is a brief study about the organization Ryan Air where the key
objective of the report is to understand the issues and consequences faced by the company
in the market. As compared to the competitive prospective, Ryan air is considered to be the first
Airline industry that is associated with budget system in Europe where the operational aspect of
the company is completely inspired by Airline that is related to U.S budget system, Southwest
Airlines. The study basically gives more emphasis under the area of certain challenges the
organization is currently facing along with some recommendations are added to make the study
more demonstrative and understandable. Apart from this, clear analysis of the company’s
micro and macro environment factors and SWOT analysis is performed to evaluate the
organizations performance in the international market on all aspects.
Summary of the Case Study
This respective report is completely based on an analysis conducted through a case
study which is related to Eleanor O’Higgins’ where the review about the organization Ryan
Air was conducted in the year 2007. However in the respective part, research that is related to
other secondary part of the organization is clearly analyzed and is applied to support the key
arguments that are related to the study.
As per the information prospective related to the case study, some of the critical issues
that are faced by the company is identified in the study as a part of restructuring the key
issues that are associated with the organization in the market under the part of
competition. On the other hand, clear understanding about the company’s internal and external

3RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
environment is made in the report. In order to bring a clear justification on the conducted
argument about the organization Ryan Air, theories and models that are related to the system of
strategic management such as PESTEL analysis is performed to make the study more
effective and competitive.
Critical Issues and Challenges Faced by Ryan Air
Although, it is considered to be a stated factor that the organization has been facing
several problem and consequences under the area of cost structure, apart from this they
managed to grow and survive in the market based on their performance on all terms. According
to Ryan Air, as compared to their market performance they are successful in implementing
different market strategies in order to enhance the organization to survive in tough
competition and under the area of gaining better competitive position in Airline market.
It is identified that the organization was believed to be one of the most punctual
service providing Airline Company between London and Dublin. And, because of their
strong and competitive market strategy in the Airline industry, currently Ryan Air is
considered to be the largest Airline Industry that is placed under second position in the market
of Europe and United Kingdom in terms of low fare service offered by them1. The overall
network of the organization is related to the total of 57 routes over 11 countries assisted by 31
Boeing fleet almost 737-200 and -800 aircraft along with the total of 1400 personnel and staff.
For the purpose of creating adaptive positioning strategy in the market, the key emphasis
of the organization is under the area of remaining more cost oriented through the system of
1 Weible, Christopher M., Kristin L. Olofsson, Daniel P. Costie, Juniper M. Katz, and Tanya Heikkila. "Enhancing
Precision And Clarity In The Study Of Policy Narratives: An Analysis Of Climate And Air Issues In Delhi, India".
Review of Policy Research 33, no. 4 (2016): 420-441.

4RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
offering low cost services in order to remain more sustainable and profitable with related to their
market performance. Along with this for flights that cover short distance Ryan air basically
offers minimum service standards adopting low price strategies to make the customers more
convenient and satisfactory with their service rendered in the market2. As compared to the
organization, their major focus is on adopting low fare travelling assistance in order to
overcome their current issues that are related to the organizations cost structure.
One of the most important concepts which are required to be added to the key part of
discussion is related to the Critical Success factors (CSF) associated with the operational
aspect of Airline Industry. Under this respective market strategy, the key focus is on
availing low price services along with remaining more reliable in the marketplace and to
ensure better comfort, frequency and service through their functioning’s3. It is understandable
that Airline companies that offer low-cost services give more emphasis in the area of their
Critical Success Factors.
In this respective part, as compared to the operational aspect of the organization Ryan
Air, they have eliminated certain extra services which were rendered by them that include
advances seating systems, flight meals, free drinks and many other services4. Apart from
this, they still give more priority under the area of meeting the needs and wants of their target
2 Lee, Martha, Michael Brauer, Paulina Wong, Robert Tang, Tsz Him Tsui, Crystal Choi, and Wei Cheng et al.
"Land Use Regression Modelling Of Air Pollution In High Density High Rise Cities: A Case Study In Hong Kong".
Science of The Total Environment 592 (2017): 306-315.
3 Sotiriadis, Marios D. "Culinary Tourism Assets And Events: Suggesting A Strategic Planning Tool". International
Journal of Contemporary Hospitality Management 27, no. 6 (2015): 1214-1232.
4 Refslund, Bjarke, and Ole Henning Sørensen. "Islands In The Stream? The Challenges And Resilience Of The
Danish Industrial Relations Model In A Liberalising World". Industrial Relations Journal 47, no. 5-6 (2016): 530-
546.

5RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
market which includes advanced reservation system, offering service in an on-time basis and
innovative baggage handling facilities to their customers.
PESTEL Analysis of Ryan Air
Political factors
 The first and foremost factor is related to the changes that are caused under the area of
government policies.
 They have been constantly involved in several legal disputes that were related to their
business dealing with airports and other regulatory bodies associated to airline
industry within the country and European Union.
 Government decisions in order to introduce better enhancement to the tourism industry
in the respective nation was a positive impact for Ryan Air in the market on all terms.
Economic Factors
 The first part is related to economic recession, the economy of Ireland had been
already at the growing stage however it was declared that this can change in the
upcoming times5.
 Because of this particular reason main and key target customers may not conduct flight
for business which can lead to cost cutting.
 The fluctuating cost of fuel and energy is the key reason behind uncertainty.
Social Factors
5 Sotiriadis, Marios D., and Stelios Varvaressos. "A Strategic Analysis Of The Greek Leisure Tourism: Competitive
Position, Issues And Challenges". Mediterranean Journal of Social Sciences (2015).

6RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
 Because of strong and adaptive economic growth in the current times, it is considered to
be a normal part to conduct flights for holidays. Due to this particular reason market
has become expanded and advances opportunity in the area of tourism have
introduces in formerly unconsidered countries.
 Trips related to business, Ryan Air basically do not avail luxury service they are
perhaps more attractive as for a company less cost means travelling can be made on a
frequent basis.
 Low cost strategy in the market means, to attract wider demographic customers.
Technological Factors
 Video conferencing is considered to be the major threat factor that is associated with
the business market.
 The other factors are related to the system of checking based on self service and on line
basis.
According to the theories demonstrated by O’Higgins, it is stated that the organization
Ryan Air is considered to be one of the well-known commercial aircraft as in the current
stage they have a total fleet mostly of Boeing 737s which is believed to be best compared to
their competitors in the market6. Thus, under this respective part, it has become much
accessible for them to obtain maintenance and spare services on promising terms due to
better economic scale, limited cost in training staff and strong flexibility in developing
aircraft and other crew assignments.
Environmental Factors
6 Andrea Caputo and Adrian Borbely, "When Strategy Meets Negotiation: The Negotiation Capability Of Ryanair",
Academy of Management Proceedings 2016, no. 1 (2016): 13571.

7RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
 As compared to Ryan Air, they mostly use much environment friendly aircrafts.
 As per the norms and condition that are associated with the aviation industry, it is stated
that carbon emissions at the total rate of 2.6 percent can be compulsorily liable to pay
taxes for making contribution to the problem of global warming.
 Introducing efficient aircraft that uses less amount of fuel and spread less pollution.
Recommendations
 The first and foremost factor is associated with the system of quality management.
According to Ryan Air low price strategy adopted by them in the market has affected
their service quality. It is important for Ryan Air to give more emphasis under the
area of quality management system in order to retain and attract customers in the
market. Innovative quality management system can help in creating better advancement
in the part of their service quality. This can also help in increasing the organizations
profitability and productivity in the international market competitions.
 As compared to the performance prospective adopted by the company, it is important
for them to give more emphasis under the area of low cost strategy system adopted
by them compared to the market performance of their competitors that offers and
adopts same pricing strategies such as Air Berlin and Easy Jet.
 Due to their weak performance and service quality in the market, Ryan Air has lost
relationship with their key target customers. It is important for them to implement
strong customer relationship management strategy in order to reduce the limitations
associated with the organization.

8RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
 In order to ensure better corporate position for the organization they must also try to
adopt CSR projects for betterment in the future.
Conclusion
As a part of conclusion, it can be stated that Ryan Air is considered to be one of the well-
known commercial aircraft as in the current stage they have a total fleet mostly of Boeing 737s
which is believed to be best compared to their competitors in the market. Thus, under this
respective part, it has become much accessible for them to obtain maintenance and spare services
on promising terms due to better economic scale, limited cost in training staff and strong
flexibility in developing aircraft and other crew assignments. Due to their weak performance and
service quality in the market, Ryan Air has lost relationship with their key target customers. It is
important for them to implement strong customer relationship management strategy in order to
reduce the limitations associated with the organization. In order to ensure better corporate
position for the organization they must also try to adopt CSR projects for betterment in the
future.

9RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS
References
Caputo, Andrea, Adrian Borbely, and Marina Dabic. "Building Theory On The Negotiation
Capability Of The Firm: Evidence From Ryanair". Journal of Knowledge Management 23, no. 2
(2019): 240-262.
Sotiriadis, Marios D., and Stelios Varvaressos. "A Strategic Analysis Of The Greek Leisure
Tourism: Competitive Position, Issues And Challenges". Mediterranean Journal of Social
Sciences (2015).
Sotiriadis, Marios D. "Culinary Tourism Assets And Events: Suggesting A Strategic Planning
Tool". International Journal of Contemporary Hospitality Management 27, no. 6 (2015): 1214-
1232.
Weible, Christopher M., Kristin L. Olofsson, Daniel P. Costie, Juniper M. Katz, and Tanya
Heikkila. "Enhancing Precision And Clarity In The Study Of Policy Narratives: An Analysis Of
Climate And Air Issues In Delhi, India". Review of Policy Research 33, no. 4 (2016): 420-441.
Refslund, Bjarke, and Ole Henning Sørensen. "Islands In The Stream? The Challenges And
Resilience Of The Danish Industrial Relations Model In A Liberalising World". Industrial
Relations Journal 47, no. 5-6 (2016): 530-546.
Lee, Martha, Michael Brauer, Paulina Wong, Robert Tang, Tsz Him Tsui, Crystal Choi, and Wei
Cheng et al. "Land Use Regression Modelling Of Air Pollution In High Density High Rise
Cities: A Case Study In Hong Kong". Science of The Total Environment 592 (2017): 306-315.

10RYAN AIR STRATEGIC ISSUES AND RECOMMENDATIONS