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Strategicmanagementryanair 111011021937 Phpapp02
Strategicmanagementryanair 111011021937 Phpapp02
Team members:
Ivan Martinov
Sabbir S. M.
Agenda
1 Company Overview
2 Strategic Analysis
3 Strategy Formulation
5 Conclusion
» In 1986 launch fare of £99 return, less than half the price of the BA/Aer Lingus
lowest return fare of £209. First European fare war
1 Company Overview
2 Strategic Analysis
3 Strategy Formulation
5 Conclusion
encroaching on existing
LCC route
Need for low cost base Suppliers Buyers
Flight Authorization
Rivalry
Substitutes
Porter’s Five Forces - Buyers
Rivalry
Substitutes
Porter’s Five Forces - Substitutes
No brand loyalty of
customers Threat of
No ‘close customer Entry
relationship’
No switching costs for
the customer
Other modes of
Rivalry
Substitutes
Porter’s Five Forces - Rivalry
Strengths Weaknesses
- Brand name - Prone to bad press
- Low airport charge - Niche market: restricted expansion possibility
- First mover advantage on regional airports - Distance from some regional airports make
- E-ticketing (94% on booking) reduce operating cost inconvenience to the traveler
- High seat density - Poor service
- All Boeing aircraft make it low maintenance cost - Extremly sensitive in changing fare
- Fuel and other risk hedging
- High service performance: punctual, low baggage
loss
Opportunities Threat
- European Union expansion - Oil market fluctuation
- Scope of potential market to capture - Increase of low fare competition
- Benefits from less exposure geographical risk - Limited growth in Southern Europe
- Economic slowdown helps Ryanair to promote - Customers are price sensitive
their strategy of low fare - Increase in air traffic charge
Conclusion:
» Positive sociodemographic factors
supported by strong technological
innovations
» Bad legal and environmental aspects
» Mixed political and economic
environment
» Result of analysis:
The Macroenvironement is
contradictory
» Creditors
» Government
Power
Minimal effort Keep informed
» Employees
» Competitors
Low
Low High
Level of Interest
1 Company Overview
2 Strategic Analysis
3 Strategy Formulation
5 Conclusion
Vision
» Become Europe’s Leading Passenger Carrier
Mission
» No. 1 for offering cheapest air fare
» No. 1 for punctuality
» No. 1 for service commitment
New
Products
Market Penetration Market Development
Existing New
Markets
Croatia Morocco
Market
Growth
Cash Cows Poor Dogs
» Small unnecessary
» Popular destinations:
destinations
London, Paris, Milan
Madrid, Rome, Barcelona
Low
High Low
Market Share
Global Transnational
Strategy Strategy
Globalization
forces towards
standardization
International Multidomestic
Strategy Strategy
Weak
Weak Strong
Localization forces towards customization
1 Company Overview
2 Strategic Analysis
3 Strategy Formulation
5 Conclusion
Financial Customer
Internal Learning