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CASE STUDY:RYANAIREUROPEAN PIONEER OF BUDGET AIRLINE TRAVEL

Group -04Industrial Information technology

Business strategyIIT 351-2

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OUTLINE 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 Political: Political stability and EU expansion

Airport Security restriction

Economical: Fuel cost

Efficient substitute transport

Social: Consumer life style and demography

Frequency traveling

Technological : on-line bookings

ancillary services

Environmental :global warming concerns

regulations for noise pollution

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 Physical Resources – consists of the resources that

are needed to operate such as aircraft fleet, headquarter, secondary airports.

Human Resources – company has 2,700 employees.

Financial Resources – The financial resources of the company comes from the Ryan Family, shareholders, investors and creditors.

Intellectual Capital – these are the knowledge, skills, abilities and talents that every in Ryanair possesses

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CONTINUES….

Competencies Innovative cost cutting

maintaining only fewer inventories aircraft maintenance parts and training of maintenance engineers.

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

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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company name Customer Complain Operation Cost1 Ryanair 12.7 5792 Aer Lingus 3.2 814.23 British Airways 6.8 73094 essyjet 9.3 883.45 Luthansa 0.6 167426 Air France 3.67 KLM 5.98 veigin Atiantic 7.9

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CRITICAL ISSUES

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-Ryanair2- competitors and market3-EU airline sector4-Macrro environment

Porter’s 5 forces

Competitive Strategies

02

03

01

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PESTEL

Resource and competencies

Strategic leadership

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