Ryanair was founded in 1985 and has become a pioneer of low-cost airline travel in Europe. Through strategic analysis tools like PESTEL, Porter's Five Forces, and evaluating its resources and competencies, Ryanair has pursued a strategy of ultra-low fares by operating efficiently and cutting costs. This strategy has been successfully implemented under the leadership of CEO Michael O'Leary. However, Ryanair faces some critical issues like low customer satisfaction due to reduced services and vulnerability to rising fuel prices that it must continue addressing to maintain its competitive advantage.

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CASE STUDY:
RYANAIR
EUROPEAN PIONEER OF BUDGET
AIRLINE TRAVEL
Group -04
Industrial Information technology
Business strategy
IIT 3512
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OUTLINE
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Introduction
Analysis tools
PESTEL Analysis
Porter’s Five forces
Competitive strategies
Recourse and competencies
Strategic Leadership
Strategic group
Critical issues
Conclusion and Recommendations
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INTRODUCTION
Based on the case study by Eleanor
O’Higgins
 Ryan air was founded in 1985 to
travel
between Ireland and the UK .
 It strategic objective is to offer the lowest
possible air fare.
 Michael O’ Leary appointed as The CEO.
 Used macro environment analysis tool.
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ANALYSIS TOOLS
PESTEL analysis
 Porter’s Five forces
 Competitive strategies
 Resource and competencies
 Strategic Leadership
 Strategic group
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PESTEL ANALYSIS
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Political:
Political stability and EU expansion
Airport Security restriction
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Economical:
Fuel cost
Efficient substitute transport
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Social:
Consumer life style and demography
Frequency traveling
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Technological : on-line bookings
ancillary services
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Environmental :global warming concerns
regulations for noise pollution
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Legal:
New rules by EU
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PORTER'S FIVE FORCES ANALYSIS
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COMPETITIVE STRATEGIES
Cost efficient operating strategy.
 Boeing 737-800 fuel efficient airplanes.
 Flying to secondary airports as point-to-point
 Maintain very strong brand name.
 High aircraft utilization.
 Punctual, high rate of flight completion, low
baggage loss
 BPR approach thought IT/IS
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RESOURCES AND COMPETENCIES
• Resources
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Physical Resources – consists of the resources that are
needed to operate such as aircraft
fleet, headquarter, secondary airports.
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Human Resources – company has 2,700 employees.
Financial Resources – The financial resources of the
company comes from the Ryan
Family, shareholders, investors and creditors.
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Intellectual Capital – these are the
knowledge, skills, abilities and talents that every in Ryanair
possesses
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CONTINUES….
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Competencies
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Innovative cost cutting
 maintaining
only
fewer
inventories
aircraft
maintenance parts and training of maintenance
engineers.
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Alternative revenue generation
 Food
and beverages, airport check in, baggage
checking and any other additional passenger service
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STRATEGIC LEADERSHIP: MICHAEL O’LEARY
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Risk taker
Hands-on day-to-day decision maker
Enthusiasm and energy
Determination and mission orientation
Autocratic leadership
Exploiting and maintaining core
competences
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STRATEGIC GROUP ANALYSIS
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CUSTOMER COMPLAIN ANALYSIS
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1
2
3
4
5
6
7
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company name
Ryanair
Aer Lingus
British Airways
essyjet
Luthansa
Air France
KLM
veigin Atiantic
Customer Complain
12.7
3.2
6.8
9.3
0.6
3.6
5.9
7.9
Operation Cost
579
814.2
7309
883.4
16742
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CRITICAL ISSUES
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Low Customer service satisfaction.
-Ryanair has eliminated traditional in-flight
services.
-Earn profit from such secondary services by
charging customers .
Fuel Prices
-Vulnerable to rising fuel prices
Industrial Relations
-Unions were not recognize
Safety Issues
-Poor staff morale
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CONCLUSION
1-Ryanair
2- competitors and market
3-EU airline sector
4-Macrro environment
Resource and
competencies
04
PESTEL
03
Strategic
leadership
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02
Competitive
Strategies
Porter’s 5
forces
Strategic
Group
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RECOMMENDATION
Increase the customer service
 Increase the customer loyalty
 Should invest on the Information Technology
 Need day to day updated completive
strategy
 Further reduce the cost
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THANK YOU
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