Strategic Management Report: Ryanair Airline Industry Analysis

This report provides a comprehensive strategic analysis of Ryanair, a European low-cost airline. It begins with background information on Ryanair, followed by an in-depth external analysis of the airline industry, including a PESTLE analysis covering political, economic, social, technological, environmental, and legal factors. A brief competitor analysis examines key rivals like Monarch Air Group, EasyJet, and Jet2. The report then delves into Ryanair's internal strategic capabilities, utilizing a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Strategic direction options are evaluated using the Ansoff Matrix, exploring market penetration, product development, and market development strategies. The report concludes with recommendations for Ryanair based on the analysis, offering insights into how the airline can maintain its competitive advantage and achieve its strategic goals. This report aims to provide a detailed overview of Ryanair's strategic position and future prospects, and is available on Desklib, a platform providing students with AI-based study tools.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Ryanair- Background Information..........................................................................................3
2. External: Airline Industry Analysis........................................................................................3
3. Brief Competitor Analysis......................................................................................................4
4. Internal Strategic Capabilities.................................................................................................5
5. Strategic Directions Options...................................................................................................5
6. Strategy Selection and Justification........................................................................................6
7. Recommendations on the present case study of Ryanair.......................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is the process of continuous planning, analysis, implementing,
monitoring and assessing the things which are essential to an business enterprise to attain their
goals and objectives. This is important for an organisation for achieving their long term success.
The main role of this is to focus on improving the customer satisfaction, and beating the
competition to analyse the market (Bettis and et.al., 2014) . The present case study if on Ryanair,
which is a European low cost airline industry, founded in the year 1984 by Michael O'Leary.
This report will mainly emphasizes on the industry analysis, competitor analysis, internal and
external analysis along with strategy selection and justification of the firm.
1. Ryanair- Background Information.
Ryanair was founded in the year 1984 and headquartered in Swords, Dublin, Ireland, with
its primary operations which is based on Dublin and London airports. This forms the largest part
of the Ryanair holdings family of airlines and has the Ryanair Sun, Ryanair UK, Lauds is named
as the sister of airlines. The main purpose of Ryanair is to establish its business as Europe
leading low-fares scheduled passengers airline by expanding and improving its low-fares
services. Ryanair is offering the low-fare of their flight as for they want to gain the attention of
more passengers. The Ryanair industry is 34 years old as it was incorporated on 28 November,
1984. Besides these, the firm also provide hotel booking and online car, tail services and travel
insurance (Hill, Jones and Schilling, 2014) . The vision of Ryanair is that they want that in next
10 year, the fare of their flights become free in which the flight is full and they generate their
fund by sharing the revenue of airports.
2. External: Airline Industry Analysis.
The industry analysis of a company can be done by analysing the PESTLE analysis,
which is explained as below -
1. POLITICAL : The political stability conditions of Ryanair is that the firm is following the
new rules of EU which is successfully followed by them, in which the factor which are

included are expansion of duty, and free sale of products, etc. In addition with this, the
firm is also getting the services and help by the government to operate their business
operation in global market with full security. The political system in the nation and their
relation with other nations has directly impact on airline industry. Rynair is the small and
low cost airline and it has limited number of places and location on which it is regulating
or operating their flights so this is greatly effect on its business operations and its
functions. The airline industry are flagship airline which they have abide by the political
policies of the country.
2. ECONOMICAL : In economical factor of Ryanair, it is stated that the Europe market is
different from the internal and external, and after analysing it came to know that the
internal market is stable while the external market is non-stable. That's why the price of
fuel are rising. Therefore, by these issues the firm Ryanair is taking the advantage of
regional subsidies and establish the difference between the trains and new highly speed
airports. Along with this, economic state of the country which has greatly impact on
airline industry. It has maintain direct relation with other airline. When business activities
are reduced, then there are number of passengers which are eliminate so airline does not
have enough passengers on any particular destination. Which cause loss to airline.
3. SOCIAL : In the social factor of Ryanair, it is stated that there is the enhancement in
lifestyle of travelling and the grey marketing is also rising, which is changing on daily
basis. Along with this, also there is a slight change in the demand and preferences of
customers and customer demographics are also varying as the time changes. The
passengers look for the safety and security in the airline and if passengers feel secure then
they will prefer to travel from airline. There are some health issue occurs such as avian
flu, swine flu, it can shatter the trust of the travellers. Ryanair is the Irish airline and staff
of this airline is very polite and hospitable. Most of the passengers are impress with their
behaviour and well beings services. They are gives excellent services and facilities to the
passengers.
4. TECHNOLOGICAL : In context with Ryanair, this factor states that the firm is using the
new and advanced technology and new fleet in order to gain the attention of more
customers. Also the firm Ryanair is establishing the new software programme which
assist the organisation to modify their working of supply chain system. In addition with

this, with the use of technology, the firm is trying to reduce the consumption of fuel. The
airline provide services and facilities of audio songs and movies during the flights on
their LCD screen and passengers which can enjoy during their flight. The travellers need
to get complete information about any airline survey and online and they can know time
and fair of the flight of any specific location.
5. ENVIRONMENTAL : In respect of Ryanair, this factor states that the firm is taking the
use of new technology and by which they are reducing the fuel consumption by which
there is reduction in air pollution so the environment is not getting polluted. These
technology also helping the firm to save the factors of environment from hazardous gases
like CO2. They are mainly focus on maintaining and managing their flights where they
are clean all the areas in which they can easily sustain for long time period. With the
enhancing in getting goal of environmental awareness, Ryanair has to reduce the impact
of carbon footprints on the environment.
6. LEGAL : The IATA is the agency, which has made some rules and regulations to operate
the airlines flights in all over the world. The airlines like Ryanair have to follow these
rules and regulations and rendering the benefits to the passengers. They need to follow all
rules and regulation if they does not adopt such so they are face major issue while
operating business. Ryanair recently commentary demonstrate that suspending all flights
between UK and EU is well probable to gradually diverse from the UK.
3. Brief Competitor Analysis.
The competitor analysis has been analysed by the three main competitors of Ryanair,
which are outlined below -
1. Monarch Air Group – This is the airline which is the leading rival of Ryanair, and
founded in the year 2006. In very less time, this have enhanced the growth of their airline
flights (Sammut‐Bonnici and Galea, 2015) . This organisation is operating their business
in travel agency and the revenue generated by this firm is less than the revenue generated
by Ryanair.
2. Easy Jet -This firm is one of the main competitor of the Ryanair and was incorporated in
1995, and headquartered in Bedfordshire, England. This firm is having around 583
employees as compare to Ryanair.

3. Jet 2 – This is also one of the competitor of the firm Ryanair, which was established in
the year 2003 and headquartered in Leeds, England. This firm was engaged in the travel
agency and generates the revenue around 0.81% as compare to the revenue of Ryanair.
4. Internal Strategic Capabilities.
The internal strategic capabilities of a firm can be evaluated by the SWOT analysis of a
company, the swot of Ryanair is done below -
Strengths – The firm Ryanair is having many
strength such as it was established in the
Europe market and covers more than 1800
paths and 200 destinations. Ryanair is having
the strong balance sheet and consistent
shareholder returns, also the low fare cost of
Ryanair is the main strength of the firm as by
this they are enhancing their customer base.
Along with this, it operates the point-to-point
flights within short distance locations.
Ryanair is the largest European airline
organisation and it is flexible company where
non union work force. It has low cost base
which is the major key of competitive
advantage. Ryanair operate and regulate point
to point flights within short distance locations.
Weaknesses – The major drawback of the
Ryanair is having that the labour relations and
change in employee compensation
arrangements can impact the business of
Ryanair. Along with this, the aggressive fleet
expansion may result in overcapacity in the
upcoming future (Düsseldorf, 2016) . The
major weakness is that they are not making and
developing strong relationship with their
customers or passengers. In an organisation,
they does not maintain relation between
employees and employers.
Opportunities – Ryanair is having the
opportunity of increasing their revenue with
the help of my-Ryanair. Also, this is having the
opportunity in declining charter flight segment.
Along with this, the focus on customer
experience can also be the opportunity for
Ryanair as they can focus by always getting
better program. Ryanair has good scope in
Threat – The major threat is increase in Irish
Corporation tax rates and competition from
other low cost regional carries. Along with this,
the fluctuations in the price of fuel can affect
the business and profitability of the firm.
Fluctuation in fuel prices can directly affect on
organisation's business models and its
profitability. There are various competitors

enhancing and increasing ancillary income or
revenue through myRyanair. It is mainly focus
on customer experience through Always
Getting Better (AGB) program.
which create major issue in the market place
for an organisation.
5. Strategic Directions Options.
The strategic directions can be analysed by the Ans-off Matrix of a firm, as this defines
that which strategy is the firm is following in the present time.
Ans-off Matrix of Ryanair – This is the strategic planning tool which help the firm to
provide the structure to managers, executives, marketers to develop that strategies for the
upcoming future which help them to attain their goals and objectives. This model was founded
by Russian American Igor Ans-off to represent the business firm growth strategies. This is the
marketing strategy which includes Market penetration, Product Development, Market
Development and Diversification. These growth strategies are evaluated below as per the
viewpoint of Ryanair Airline Industry.
1. Market Penetration – In this strategy, the firm looks to expand their existing product in
the existing market. In context with Ryanair, the firm increases their market share by
doing the prices low of their airline flights and also increases the market share by
acquisition. This strategy can be used by respective firm which help them in enhancing
their market share in whole market place. In this, they are lower the rate of flights which
attract large number of people.
2. Market Development – In this the firm seeks to promote their existing product in the new
market. Therefore, in context with Ryanair, the firm will promote their airlines flights at
new airports. Also, they might can go to the other country to provide the existing services
to the new customers. In this, Ryanair are promoting their services and facilities which
are offered by them to their passengers during the flight. They are analyse whole market
as per this they are make proper changes in their current flight services.
3. Product development – In this strategy of marketing, the firm introduce its new
innovative products in the existing market. Therefore in context with Ryanair, to
introduce new products in active market, they are given the free flight, also provide the
facility of checking the ticket online with the use of Information technology
development. In this, Ryanair introduce their new services and facilities in the large

market area where they can easily gain attention of desired people. They are offer variety
of services such as free tickets, coupons, vouchers and so more.
4. Diversification - In this strategy of marketing, the firm seeks to introduce its new
products in new markets. In context with Ryanair, the diversification is of creating and
developing and providing the new services such as hotel, online car, resort, restaurant,
etc. They are diversify all services and goods which are assist in fulfilling all services
related to flights, their activities and many more.
6. Strategy Selection and Justification
As it is known that Ryanair is the largest airline company to have the huge number of
passengers in all over the Europe in 2009. This is the top leading company in the industry of
airline which provides the best services to their passengers at low fare (Trigeorgis and Reuer,
2017). This is an organisation which has adopted the strategy of “No Frills” which justify them
who have low cost fare of the flights. Also, the firm has adopted that strategy in which they can
generate 20% of the revenue in the form of ancillary revenue, so in that case Buy on Board
strategy is adopted by the firm which involve the extra charges of luggage. As the Ryanair is
having the flexible culture and that culture provide them more benefits to become the number
one low cost service provider in all over the Europe. The firm is having the opportunities by
offering their services in different routes which will be beneficial for them to expand their
market share. In addition with this, by adopting the policy of refund, they have enhanced their
profitability.
7. Recommendations on the present case study of Ryanair
From the above discussion, it is stated that Ryanair is the first airline industry in Europe
which is providing the low fare rates to their passengers. Therefore, it is to suggest that Ryanair
have to attend the issues and problems faced by poor customers and their human resource
management problems. Also this is to recommend to the firm that the firm should recognize the
issues of their employees or labour and resolve them in such a way that this can help in
improving the relationship with their employees. In relation to provide the effective customer
services, the firm is needed to reduce the cost which can be attained by improving the quality of
providing the training to their front-line staff members. All this, will help the firm in creating the
better workforce and satisfy the customers at the best level. Also, it is to suggest to the firm , that
if they want to enhance their profitability then they must follow the market development

strategy. Also, it is to suggest that there is a great opportunity for Ryanair to expand their
business operations in the USA under the new open air pact. So they must think on this thing to
expand their business. Also, Ryanair must consider there weaknesses and should work on it to
enhance their profitability and productivity.
CONCLUSION
From the above mentioned report, this is to conclude that Ryanair is one of the top airline
leading industry with Low fare rate in the country Europe. The firm is engage in providing the
cost travelling experience to their customer. Along with this, the strategic management plan has
been done effectively to provide the best services to their customers. Also, if the firm want to
expand their business then they must use the marketing strategy and analyse it by doing the Ans-
off matrix, this will assist the firm in enhancing their profitability. In addition with this, the
pestle analysis is also been conducted in the above report in order to identify the nature the
environment in which the firm is operating and running their business. Along with this, the
internal strategic capabilities has also been studied by analysing the SWOT of the firm, this
analysis can help the firm in knowing the hidden issues of the company and also helps to know
the weaknesses on which the firm has to work more to enhance the growth of their business.
Also the three top most and leading competitors of Ryanair is also been defined in the above
project report so that they can provide the best services to their customers.

REFERENCES
Books and Journals
Bettis, R., Gambardella, A., Helfat, C. and Mitchell, W., 2014. Quantitative empirical analysis in
strategic management. Strategic Management Journal, 35(7), pp.949-953.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Sammut‐Bonnici, T. and Galea, D., 2015. PEST analysis. Wiley Encyclopedia of management,
pp.1-1.
Düsseldorf, I., 2016. Ryanair. SWOT Analysis of the Leading Low Fare Airline. GRIN Verlag.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.