Ryanair is Europe’s leading low cost airline and offers the lowest fares on the airline market. But the question is how the small Irish company can count 103,000,000 international passengers in the fiscal year 2015, only 30 years after having been established. Why does Ryanair have a high recognition value for its brand, despite doing the advertising in-house and distributing only by using online channels? What is more, Ryanair does not offer customer loyalty programs, they do not have free drinks or food on-board; they even do not need external cleansing power for their fleet. And why no other low cost airline, like Easyjet or Lufthansa’s subsidiary Germanwings, overtook Ryanair’s competitive advantage to set the prices on the market?
Actually they tried, but it still not working. What is so unique about the Irish Airline and how successful they compete with the airlines until today, will be demonstrated further in this assignment using the SWOT analysis.
Table of Contents
- Method
- Ryanair
- The Company and the Market of Low Cost Carriers
- Ryanair's Mission & Vision
- External Analysis of Ryanair
- Macro-Environment Analysis: PEST
- Political/Legal/Ethical
- Economic
- Sociocultural/Demographic
- Technological
- Industry Analysis
- Competitive Advantage
- Porter's Five Forces
- Internal Analysis of Ryanair
- SWOT Analysis & Results
- Recommendations
Objectives and Key Themes
This assignment aims to analyze Ryanair's success as Europe's leading low-fare airline. It explores how Ryanair achieved its dominant market position despite its unique business model, which eschews traditional customer service elements. The analysis utilizes a SWOT framework to investigate both internal strengths and weaknesses, as well as external opportunities and threats.
- Ryanair's competitive advantage in the low-cost carrier market.
- The effectiveness of Ryanair's cost leadership strategy.
- Analysis of Ryanair's external environment using PEST and Porter's Five Forces.
- Evaluation of Ryanair's internal strengths and weaknesses.
- Recommendations for Ryanair's future strategies.
Chapter Summaries
Ryanair: The Company and the Market of Low Cost Carriers: This chapter introduces Ryanair's history, highlighting its emergence as Europe's leading low-cost carrier (LCC). It contrasts the LCC model with full-service carriers (FSC), emphasizing Ryanair's cost leadership strategy and its adoption of the Southwest Airlines model. The chapter details Ryanair's remarkable growth from a small Irish company to a major European airline, emphasizing its scale in terms of passengers, fleet size, destinations, and employee count. It sets the stage for the subsequent analysis by establishing Ryanair's position within the competitive landscape.
Ryanair's Mission & Vision: This chapter explores Ryanair's mission and vision statements, emphasizing the core organizational values of strategic customer-centricity and long-term customer satisfaction. The chapter acknowledges the inherent challenge of translating these high-level goals into concrete strategies. It discusses the evolution of Ryanair's mission, showing a shift towards increased customer focus while maintaining a commitment to offering the lowest fares. The chapter highlights the tension between low-cost operations and customer satisfaction, setting up a key theme for the subsequent analysis.
External Analysis of Ryanair: This chapter provides a comprehensive analysis of Ryanair's external environment, using the PEST framework to evaluate political, economic, sociocultural, and technological factors. The political analysis examines the influence of the EU's regulations and the actions of national governments. The economic analysis considers the impact of fuel prices and exchange rates. The sociocultural aspect explores the diverse customer segments and their preferences. Finally, the technological elements are assessed. This chapter contextualizes Ryanair's operations within a dynamic external environment.
Keywords
Ryanair, low-cost carrier (LCC), cost leadership strategy, PEST analysis, Porter's Five Forces, SWOT analysis, competitive advantage, European airline industry, airline market, customer satisfaction, business model.
Ryanair Case Study: Frequently Asked Questions
What is the purpose of this document?
This document provides a comprehensive preview of a case study analyzing Ryanair's success as Europe's leading low-fare airline. It includes a table of contents, objectives and key themes, chapter summaries, and keywords. The analysis uses frameworks like SWOT, PEST, and Porter's Five Forces to understand Ryanair's competitive advantage and future strategies.
What topics are covered in the case study?
The case study covers Ryanair's history, business model, and market position within the low-cost carrier (LCC) industry. It analyzes Ryanair's external environment using PEST analysis and Porter's Five Forces, examines its internal strengths and weaknesses using a SWOT analysis, and explores its competitive advantage through its cost leadership strategy. The study also delves into Ryanair's mission and vision, and concludes with recommendations for future strategies.
What analytical frameworks are used in the case study?
The case study utilizes several key analytical frameworks: SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to assess Ryanair's internal and external factors; PEST analysis (Political, Economic, Social, Technological) to evaluate the external macro-environment; and Porter's Five Forces to analyze the competitive landscape of the airline industry. These frameworks provide a structured approach to understanding Ryanair's success and challenges.
What are the key themes explored in the case study?
Key themes include Ryanair's competitive advantage in the LCC market, the effectiveness of its cost leadership strategy, the balance between low costs and customer satisfaction, the impact of external factors (PEST), and the identification of opportunities and threats for Ryanair's future growth.
What chapters are included in the case study?
The case study includes chapters on Ryanair's company overview and the LCC market, its mission and vision, an external analysis using PEST and Porter's Five Forces, an internal analysis, a SWOT analysis with results, and concluding recommendations.
What are some key aspects of Ryanair's business model discussed?
The case study examines Ryanair's cost leadership strategy, contrasting its approach with full-service carriers (FSC). It explores how Ryanair has achieved its dominant market position despite its unique business model which focuses on low fares and potentially reduced customer service elements.
What are the key takeaways or conclusions of the case study?
While the full conclusions are not provided in the preview, the study aims to provide insights into Ryanair's success factors, its vulnerabilities, and potential future strategies. The recommendations chapter likely offers actionable advice for the airline based on the analysis.
Who is the intended audience for this case study?
The intended audience appears to be academic, focusing on structured analysis and professional evaluation of business themes within the airline industry. It is suitable for students and researchers interested in business strategy, competitive advantage, and the low-cost airline model.
What are the keywords associated with this case study?
Keywords include: Ryanair, low-cost carrier (LCC), cost leadership strategy, PEST analysis, Porter's Five Forces, SWOT analysis, competitive advantage, European airline industry, airline market, customer satisfaction, business model.
- Quote paper
- Irina Düsseldorf (Author), 2016, Ryanair. SWOT Analysis of the Leading Low Fare Airline, Munich, GRIN Verlag, https://www.grin.com/document/350013
