TH70052E: STRATEGIC MANAGEMENT

RYANAIR
Lecture: Keiron Coogan
Slide Submission -
Sunday 28th May 2023
Students: 21576169, 21557050 & 21405976 Presentation Day - Wednesday
31st May 2023 - 2:00 pm - 2:20
pm
Table of Contents

Introduction External Analysis on

Ryanair
● Who are Ryanair?
01 ●
●
Operation, Network & Fleets 03 You can describe the topic of the
Mission and Vision Statement section here

Internal Analysis on Business Strategy and

Ryanair
04 Strategic Implementation
● Current Position
02 ● Competitive Advantage
Recommendation and and
05 Conclusion
 Brief Introduction to
Ryanair

● Ryanair is based airline in Stansted and

Dublin.
● Part of a parent company Ryanair Holding.
● The company operates mainly in European
destination
● It is a low - cost carrier, providing both
domestic and international (mainly
01 european) services from its hubs in Stansted,
Dublin and France
Operations, Network and Fleets
Mission and Vision Statement

Mission - To provide clients with

reasonably affordable tickets while
preserving an appropriate price structure
and a dependable enterprise.
(Ryanair Annual Report, 2021)

Vision - To establish the company will be

one of the world’s leading low-cost airline
(Ryanair Annual Report, 2021)
Internal Analysis McKinsey 7s
Ryanair's Strategy:
● Long-term goal: Offer low-cost fares appealing to price-
conscious tourists and business travelers.
● Priorities: Superior customer service, frequent direct
flights, lowering operational costs (Ryanair annual
report, 2021).
● Measures: Post-flight evaluations, secret traveler
inspections, cost-cutting initiatives.

Ryanair's Structure:
● Hierarchical organizational structure with layers of
functions and departments.
● 43 main executives, 10 non-executive directors,
independent board (Theofficialboard, 2023).
● Indicates a structured approach to operating business
operations.
Ryanair's System:
● Technical infrastructure for organizational
operations, workflow, and decision-making
(Gechkova and Kaleeva, 2020).
● Gamechanger's aircraft technology for fuel
efficiency, reduced noise emission, passenger
comfort (Corporate. Ryanair, 2023).
● Emphasis on sustainability goals driven by
innovative aircraft technologies.

Ryanair's Style, Shared Values, Skills, and Staff:

● Style: Ensuring the right code of conduct
(Mahmood et al., 2021), ethical treatment of
employees (Investor. Ryanair, 2022).
● Shared Values: Providing affordable prices,
maintaining position as the top low-cost carrier in
Europe (Ryanair, n.d).
● Skills: Employee development programs, cabin
crew training (Ryanair, n.d).
● Staff: Addressing labor practices, evaluating
human resource practices (European
commission, 2019).
Competitive Rivalry:
● High competition in the airline
industry.
● Rivals: Finnair, EasyJet,
Lufthansa Group, and others
(Craft, 2023).
● Indicates a significant threat of
competitors for Ryanair.

Bargaining Power of Suppliers:

● Suppliers: Boeing (current),
potential interest in Comac's
aircraft (Isabelle et al., 2020).
● Established relationship with
Boeing reduces supplier
negotiation power.
● Indicates low supplier
bargaining power for Ryanair.
Bargaining Power of Buyers:
● Ryanair offers low-cost airline services (Ryan Air,
2023).
● Quality services at low fares reduce buyer bargaining
power.
● Ryanair leverages its connection with consumers for
negotiation advantages (Caputo, Borbely and Dabic,
2019).

03
Threat of Substitutes:
● Ryanair offers both domestic and
international flights.
● Reduces the power of substitutes like
buses, trains, and other public
transportation.
● Flying offers advantages such as shorter
travel duration (Railway Technology, 2013).

Threat of New Entrants:

● Airlines face challenges like high capital
needs and airport capacity.
● Ryanair introduces frequent flyer program
to provide benefits and loyalty incentives.
● Membership fee of £199 for accelerated
security, free seats, and priority boarding
(Ryanair - Annual Report, 2019).
Ryanair’s Strategy

Economic Consumer Experience Sustainability

Ryanair Competitive Advantages

- Low Fares
- Low Operating Costs
- Frequent point-to-point flights on
short-haul routes
- Network
- Ancillary services and products
- Always Getting Better customer
experience program (AGB)
04 Business Strategy and Strategy Implementation

- STRATEGIC PRICING PRACTICES - FOCUS STRATEGY

- OPERATING COST - SINGULAR AIRCRAFT MODEL
Recommendation

❖ Ryanair expansion of routes to overcome the challenge of

05 market competition
❖ Further development of customer experience program
(AGB);
❖ Application of data optimisation and analytics
❖ Improvements to cost reduction technique; and
aggressive competition by lowering further fare prices
Change Strategy
Strategic Implementation
 Conclusion

The analysis of Ryanair has identified the aircraft is the number one low cost
carrier airlines in Europe and will continue its leadership journey, by
ensuring the ir company strategy and implementing recommendation to
better assist and elevate their services.

Despite competition and different market challenges i.e Covid -19 it has a
strong financial base and management procedures, continuing to be
innovative will allow the sustainability of the brand

05
Thank you for listening
Do you have any questions?
REFERENCES