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THE STRATEGIC MANAGEMENT OF
RYANAIR CASE:
Contents
INTRODUCTION ............................................................................................................................................. 2
STRATEGIC ANALYSIS .................................................................................................................................... 3
Environment analysis .................................................................................................................................... 3
EXTERNAL ANALYSIS ..................................................................................................................................... 3
Pest analysis .................................................................................................................................................. 3
Political factors:............................................................................................................................................. 3
Economical factors: ....................................................................................................................................... 4
Social factors: ................................................................................................................................................ 4
Technological factors: ................................................................................................................................... 4
Oppurtunity: ................................................................................................................................................. 4
Theart: ........................................................................................................................................................... 5
INTERNAL ANALYSIS ...................................................................................................................................... 5
Strenght: ....................................................................................................................................................... 5
Weakness ...................................................................................................................................................... 5
VALUE CHAIN ANALYSIS ................................................................................................................................ 6
Primary activities: ..................................................................................................................................... 6
Supportive activites: ................................................................................................................................. 6
Core competences: ....................................................................................................................................... 6
Strategic group analysis ................................................................................................................................ 6
Porter five forces........................................................................................................................................... 7
Barriers to entrants ................................................................................................................................... 7
Bargain power of suppliers ....................................................................................................................... 7
Bargain power of customers ..................................................................................................................... 7
The threat of substitute product .............................................................................................................. 7
Rivarly among competitors ....................................................................................................................... 7
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Generic strategies ......................................................................................................................................... 8
Focus ......................................................................................................................................................... 8
Cost leadership ......................................................................................................................................... 8
Differentiations ......................................................................................................................................... 8
No frill strategy ......................................................................................................................................... 8
Ansoff growth matrix .................................................................................................................................... 8
Market penetration .................................................................................................................................. 8
Market development ................................................................................................................................ 9
Product development ............................................................................................................................... 9
Diversifications .......................................................................................................................................... 9
Implications on the certain issues ................................................................................................................. 9
Strategic capabilities ................................................................................................................................. 9
Price based strategy. ................................................................................................................................. 9
Lock in customer ....................................................................................................................................... 9
Conclusion ................................................................................................................................................... 10
REFERENCE: ................................................................................................................................................. 10


INTRODUCTION
The first ever budget air line tag had been introduce by the name of ryanair. The ryanair had
been considering the principle of low fares from its consumers and quality services in that cost.
The ryanair has been holding the cost leadership quality in its business strategies, through this
strategies ryanair is widely known as masters in air dealing. As with high competition in tours
and travel business the ryanair had created a legendary for its business. The strategies potentail
of ryanair would help and make one of successive companies in next 5 years, as it is largest
airlines and with lowest fares carriers in the Europe.
It had almost 35 millions passengers across 24 countries with 346 low fare routes at current
holding. The ryanair company had created the hoslistic implementations of the cost oreinted
business approach as well as efficient operations. The ryanair considered as Europe and world
largest airlines in terms of national passenger and international passenger both. The ryanair is
second sucessful model after first US carriers (south west air lines) as ryanair tried to copy this
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successful model in the airlines or aviations industry. At present ryanair are having 737-800
flights or air craft which is moving around 1000 air routes over the 40 bases.
STRATEGIC ANALYSIS
The strategic analysis means analysing the situations in very depth concern and taking a most
suitable decision on this situation. As in case of ryanair the CEO, of ryanair micheal Olerry had
brought the drastic change in this functioning due to this conventional ideas and innovative
steps the co has to bear no marketing cost as well as ryanair has wider its horizons of
functioning and comeup with one of the best international company. The standard and quality
leadership of ryanair had excellent appproaches towards its new model like low fares every
time and every new discount and schemes to customer with full of homely environment.
Environment analysis
Due to highly competition ryanair and many other airlines has to face lot of hurdles, and
adversities, but the sustaiinbality strategies of ryanair had put the company of the peak level
over 21
st
century, internal enviornment of ryanair is quiet simple and strong in terms of
resources, planning, process etc. but the external enviornment of ryaniar is not as much as easy
moving, the company is facing lot of problems and lack through a proper co-ordinations in this
particular environment.
EXTERNAL ANALYSIS
The external analysis of ryanair would include the Pest analysis, threats of the company and
oppurtunity of the company as well.
Pest analysis
In pest analysis mostly there are four factors like political, economical, and social and
technology factors etc. which are involve in this.
Political factors:
The political factors inside the europe was stable on certain concern but the factors where not
stable outside europe, like the political force named OPEC had put lot of restrictions and
controverses for the company, as well as UK minister of climate change, Ian person comments
on ryaniar by saying that the irresponsible face of capitalism in uk, but not only this the ryanair
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has to face lot of EU commission rules and regulations, so this conflicting political environment
make ryaniar to over veiw its strategy once again.
Economical factors:
This factors hadsome good side effects on ryanair, as due to inflations period company move in
peak level amd peeak profits, the ryanair is having powerful strategy towards cost cutting and
acheiveing cost leadership thus the prices of fuel rise which could not have affect the model of
rynair that is low fares every time for customer.
Social factors:
As day by day the customer prefrences and consumer needs or desire change so this negative
prefrences had becoming companys head ache, the social factor engine had been running
because of its strong and healthy industrial relations. The ryanair had always done same
cultural and social benefits to its customer as it had brought new approach of ultra furgal,
through which the ryanair had come up with customization, not only this there are also lot if
facilities as entertainment, reducing fatigue etc. which ryanair plan for the customer to feel
free, the ryanair had also jion some societies and club from brand improving this club and
societies are manchester united, liverpool foot club etc.
Technological factors:
One of the most essentail need in this competitive era is of technology advancement. The
ryanair most competitive advantages is technology advance, a power technical support had
provide an excellent yeild management system developed. Through the supply chain software
and technified aircraft the work of ryanair smoothen, as well as functioning is maintained
properly. As O,higgins (2004) conveys that ryanair has 737 boeing currently as this considered
as best for communical used in aircraft thus, the company is able to obtain spares and
maintainance services on favourable terms thanks to economies of scale limit cost of staff
training and after flexibility in scheduling aircraft crew assignments.
Oppurtunity:
There are lot of doors open for ryanair if the bid would be successful with aer lingus, through
this there are lot of chances for forwarding itself it new, planes new capacity, new links and
widen their capacity not only this but the cost reductions had been possible through the CEO
Olerry is doing the publicity as well. The ryanair had hold the market mostly through internet
banking as from sources the fact is that ryanair is holding the largest travel web sites in all over
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Europe and it had been covert its web traffic into the advertising revenues and ecommerce. The
ryanair is recognised as most faviourite brand in google with 5
th
position. (S. furlong, 2006)
Theart:
As due to high inflations the opeartive cost is going high, mostly the fuel prices had put
company into the theart. The rynair is face the forth coming rules and regulations problem with
EU commission even some threat like environment effects had also put into the dangerous
zone to company.
INTERNAL ANALYSIS
The internal analysis mostly included or integrated through strenghts and weakness as well as
competitive strategy and value chain analysis.
Strenght:
The ryanair is considered as one of the most competitve fare airlines it has been holding no. of
passenger in 2007 as ryaniar is holding a monopoly at dubline and as well as stanted airport. It
is considered as lowest fair airlines in Europe through (IATA) international Air transport
authprity in March, 2007) ryanair is considered largest international airlines. As every timw
growth revenue of ryanair went high and high, during the fiscal year 2007 it had raise by 32.2%
over pervious year 2006
1
. The strong brand name attracts lot of customer through. The strategy
of ryanair sounds interseting through this the quality of punctual, objective focus, better
perfromance, maximize utilizations etc. had made the ryanair as successful and leading airlines
in aviation industry.
Weakness
There is a huge conflict going on in the coompany between top excceutive and pilots etc, as
well as there are huge no. of labor distputes faced by ryaniar as ryanair faced strike was
potential actions strike called wallon governement employed security staffat burrel, charlleroi
in dec, 2006. The ryaniar most lacks in economies of scale as due to small in size as compareted
to competitors Air France, luftansa, British airways.

1
Annual report of ryaniar 2007
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VALUE CHAIN ANALYSIS
In this mostly the primary and support activites of the company is analyse on the basis of the
value.
Primary activities:
The inbound logistics and outbound logistic are in favour of ryaniar, as ryaniar was benefited
from low cost suppliers and some air port agreements in favour ryanair. The staff of ryanair was
highly trained and efficient so funcitoning wasz running smooth. The ryanair had paid all levy
and tax towards the polluting enviornment, and due to high technology the less% of pollutions
was done by aircrafts of ryanair
2
. The marketing sales and services always put the company on
high time as through this customer based mantra was set up by the ryaniar that is every time
low fares which had brought huge customer intreset with limited resources and implicating a
low cost strategy too.
Supportive activites:
The ryanair had built the excellent infrastructure with the superb plant layout through this the
corporate cost of company reduces highly. There is a lot sales company through internet, as
internet marketing is one of strong support of ryaniar. The systems of ryanair are integrated
highly and so through it the technological benefits had carried out over the plant of ryanair. The
out sourcing and logistics of ryanair is better as it had now put the tag of low services cost.
Core competences:
The company was holding huge advantages of tis core competences as the in house marketing
and free publicity put the ryanair as more media oeriented. The dealing with bid and holding
collebrations with other airlines would made ryaniar as massive carriers in aviations indurty.
The low cost strategie and high quality services are alos crab the new customer with
inspirational ways no frills, no delays and bording of tickests done on web so this all small things
encourage the customer to come forward, there some favourable policys towards customers
and ryanair had develop its industrial relations very much healthy as this makes the airports
international much familiar with ryaniar. The sharp strategy through which the bargaining
power customers as well as suppliers is low.
Strategic group analysis
The ryanair was most feasible company as from the group of other airlines company. As by one
research he conveys that europe market as healthy, with huge potential and only increamental

2
Annual report of ryaniar 2006
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growth this is by Davy in relations to ryaniar poin of view. There are lot of corrupt the no. is bit
high it is 50 companies approximately due to large no. entrants, they fail to survive in market so
ryanair models strategy work for its sustainability in long time.
Porter five forces
There are lots of strategies but the most efficient strategy is competitve strategy by Micheal E.
porter.
Barriers to entrants
As the market is very much saturated but especially the EU commission had removed certain
barriers fro the airlines company so, the entry of new and different company was easy so this
becomes a threat for ryanair as it has to face lot of competitions in future.
Bargain power of suppliers
The bargain power of suppliers is low because the company is highly technological advances
and it delas with it suppilers in bulk as due to strong and huge brand name the suppliers want
their business running, so the power of ryanair is on its suppliers.
Bargain power of customers
The ryanair keeps customers on highest position, ryanair had highest position ryanair had utilize
the models which is more suitable to its customer more worthy towards the organisation. So
the low fare is the strategy and nont the customer force, so put the company into certain
threats like reducing prices etc.
The threat of substitute product
The ryaniar has to face lot of threats now a days because there are too many airlines, as they
are also considering the same facilities as by one conflicts in iindustry between easy jet and
ryanair was that ryaniar had low fares but the levy on insurances charge by the company
through its customer is 10% which is very much higher so threat of substitution product is high
for ryaniar.
Rivarly among competitors
The ryaniar plans to decrease the rivarly because of doing mergers and acquistions with other
airlines like aer lingus and so many more the ryaniar try to counter increase rivarly by frooming
distinguihing schedules and planning out new strategic alliances. (www.ryaniar.com)
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Generic strategies
This strategies concept was also give by Micheal E porter where the ryanair veiw on the basis of
its importance to customers.
Focus
The airlines does not havve any special group to focus it morely concenttrate on whole
populations the process and plans had been design and develop strategical veiw this idea only.
Cost leadership
Ryaniar is considered as leadership in manging low cost it had superb cost management as
ryaniar always plan to minnimise it cost as in one of the important statement given by micheal
Olerry in public place was is to simply contionous to be the largest cost leader in the europe
airlines industry. .(www.ryaniar.com)
Differentiations
The ryaniar has considered itself as more different from other airline companies; it is noise, full
of entertainment
3
. It had had develop the approach of ultra furgal which put the customer
more closely towards the enviornments etc.
No frill strategy
As this strategies is very much favours and helpful for the to minimise it cost, ryanair was the
frist company to introduce this strategy in 1999 as by (haberberg and reiple, 2001) it had made
an attitude like no frills airlines its customer. (www.ryaniar.com)
Ansoff growth matrix
The Ansoff Growth matrix is a device that helps businesses decides their product and market
growth strategy. Ansoffs product/market growth matrix suggests that a business attempts to
rise depend on whether it markets new or existing products in new or existing markets.
(http://tutor2u.net/business/strategy/ansoff_matrix.htm)
Market penetration
The market peneration teerminology refres to the product of the company which is existing is
been distribute in the existing market as in case of ryanair the existing services run successful in
the existing markets as it has adopted low fare strategy. (www.ryaniar.com)

3
Milmo ibid
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Market development
The market development terminology refres to the product of the company which is existing
product and lauch in the newly market as in case of ryaniar there are lot services coming up in
the market newly like new distinations new plans with new routes large capapcity, advances
bording on airport etc.
Product development
The product development terminology refres to the product of the company which is newly
develop and launch in the existing market, as in of case ryaniar, as strategical ryaniar introduce
short- hauls flights its customer as ot satisfy them, more and due to techniques put some
changes in plant layout of air craft like the sits have been more comfortable and easy moving
and going aircraft. (www.ryaniar.com)
Diversifications
The diversifications terminology is refres to launching the different new services in the new
market as in case of ryaniar, its vision is very much higher and new plans are develop according
so yet ryaniar is mental prepered for this stage but operations at present and not working.
Implications on the certain issues
Strategic capabilities
Mostly the strategic capabilities in respect to investor perpective and customer perpective both
are strong. The investors earn a lot in the financial year 2006 and 2007 as thrrough some
sources finaincial facts that ryaniar had stock over by 12% rise (annual report, 2007) further the
share of ryaniar went high as customer perpective was most concerning as new approach had
attract millions of customer towards ryaniar and lot of customer become fans of ryaniar (K.
done, 2006)
Price based strategy.
The ryaniar was the second successful model after the US carriers as the powerful buisness
model was much concerned on the price based. The every time low cost and low fares for
customer make ryaniar more popular in the marketing functions thehighly technified structure
helps to reduces its cost through each and every functions. So the price based strategy make
the company more sustainable in market for long term.
Lock in customer
The customer was more consious through this airlines because of tis every time somethings
different for its customer as the ryaniar had work to wins the hearts the services had no
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complains as in magazines the customer are more satisfied with the airlines, and its new model
based working.
Conclusion
The success of ryaniar is the hard work of its leaders behind it a excellent astaffing fuunctioning
brought all this possible despite of no. Ofcontroversus and adverties coming in the way ryanair
stand on its taargeet every time low cost, it had find and created lot of innvotive plan for lower
its cost and managing the things under that, as all through this long process and time phase
ryaniar passed on the with flying colours.
REFERENCE:
Bowley, Graham, How low can you go? Financial Times Magazine, no. 9, 21 June
2003
Cavendish, Camilla, A policy that pretends we can all fly on the cheap is a policy
that wont fly, The Times, 5 January 2006
Creaton, Siobhan, Turbulent times for Ryanairs high-flier, Irish Times, 31 January
2004
Davey, Jenny, Ryanair has earned its wings investors should set autopilot, The
Times, 6 January 2006
Finlay, Paul (2000), Strategic Management. An Introduction to Business and
Corporate Strateg Pearson Education ISBN 0 201 39827 3
Haberberg, Adrian & Rieple, Alison (2001), The Strategic Management of
Organisations, Pearson Education Ltd, ISBN 0 130 21971 1
Lynch, Richard (2000), Corporate Strategy 2nd Ed. Pearson Education Ltd, ISBN 0-
273-64303-7
McManus, John, Maybe its time for Ryanair to jettison OLeary, Irish Times, 11August
2003
OHiggins, Eleanor, (2004), Ryanair
www.ryanair.com
http://web.tic.ac.uk/staff/fosterd
Wheelen, Thomas L & Hinger, David, J (1993), Cases in Strategic Management 4
Th

Ed.Addison-Wesley Publishing Company Inc. ISBN 0-201-568659


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Appendix: 1 generic strategies
Sr.no. particulars Actions
1 Differentiation 1). Approach of Ultra frugal
2). Frills policy is Not their
3). Value ethics services in
Low cost.
1 Focus 1). Aggregate population is
trageted.
2). Proper group is Not here
3). General services is
Render by the company
3 Cost leadership 1). Strategy of Low cost
2). Cost management is
superb
3). Reduce operating profits
with Corporate merger

Appendix: 2 value chain analysis
By (James 1995) the value chain analysis is the strategic technique and tools which helps to
analyse the company working on the basis of activites carried out. It invovles the flowing
functions: such as primary activities and supportive activites.
Primary activities:
Inbound logistics
Outbound logistic
Marketing and sales
Supportive activites:
Procurement
Infrastructure
Operations


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Appendix: 3 SWOT analyses,
Strenght 1).leading low cost airlines
2). Strong revenue growth
3). Business strategy
Weakness 1). Economies of scales
2). weaking employee relationship
3). Different rules for different countries
Oppurtunity 1). Launch new routes
2). Fleet expanision
3). Global air line market
threats 1). Dening bording compensation from EU
commission
2). Security threat
3). Rise in fuel prices



Appendix: 4 balance sheet of the year 2006 and 2007 (in respect to
assests and liability)
Sr.no. Particulars March 2006 March 2005
1 Non current assets 2580592 2164732
2 Current assets 2053627 1653421
3 Total assets 4634219 3818153
4 Non current liability 1769362 1434348
5 Current liabilty 854872 649302
6 Capital 4634219 3818153
(Ryanair annual report of 2005 and 2006)



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Appendix: 5 no frills to customer.
All % Experianced no frills
travel%
Intended no frill
travels%
No bothered about the
lack of in flight
catering

34

55

66
Would not fly long
haul on a no frills
carriers

29

37

40
Good travel no that
agent is required

19

35

46
No ticket to worry
about

16

22

29
If a no frills airlines
flew to any
dsetinaiton, I would
considered it first


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Appendix: 6 proter five forces
Particulars High/low
Bargaining power of customer medium
Bargaining power of suppliers low
Threat of new entry high
Threat of substitute product high
Competive rivarly medium