Analysis of Ryanair's Strategies

Résumé du document

For many years, air travel was a distant dream for the common man.Thanks to the emergence of low cost airline companies such as Ryanair, flying is no longer reserved for the elite class. Ryanair, the pioneer of low-cost airlines, is an Irish company that was created in 1985 by Michael O'Leary. Headquartered in Dublin, the carrier proposes flights in almost all European countries. It sells the cheapest plane tickets (averaging €41) and it has become Europe's most profitable airline company. In this document, we will study its history and its evolution in the changing market environment, judge its performance and finally, we will suggest possible strategies for the future.

Extraits

[...] He is the founder of the company, so he must not forget that his personal philosophy is important for the image of the company, and chooses his words in accordance with the company's strategic objectives. Target Ryanair could also widen its target. Businessmen represent a considerable target, and many of them are so far reluctant to flights with low-cost companies. In a way to attract them, Ryanair could base its communication on its high-quality services (planes on time, very few complaints and mislaid baggage) and safety. It could make a specific campaign in magazines specialized in economy and management, in all European countries. [...]

[...] We will study its history and its evolution in the changing market environment, judge its performance and suggest possible strategies for the future. Part History and evolution Ryanair, one of the first low-cost businesses In the eighty's, a new type of trade started to develop: low-cost business. It was the result of globalization, that encouraged international exchanges and rose by the way competition. In that increasingly competitive context, companies had to find new ways to attract and keep their customers. [...]

[...] Even modest people who used to be financially unable to travel were given the opportunity to fly. As a consequence, the target was totally new in this sector. Young people with no regular revenue as well as workers, families and retired persons with small pensions were targeted. It opened the sky to everyone. For instance, it made it possible for Poland's plumbers and carpenters to find work in London and for chattering classes to buy second homes in Provence, Burgundy and in the Loire Valley. [...]

[...] Offering quality products for low prices is one of the options that were found. Many hard-discount stores –such as Lidl, Ed and Leaderprice- appeared in this context to satisfy the new low-cost exigencies of customers. Ryanair was created with the same objective: lower prices for higher satisfaction. Facing intense competition (national companies, and later a lot of low-cost companies were created, such as Easy-Jet), Ryanair pulled out by reducing costs to the maximum while offering a relatively high-quality service. Moreover, flights responded to a new demand. [...]

[...] This was a huge opportunity for Ryanair; e-business made it possible for the company to reach everybody for very low costs. They did not need to open lots of travel agencies in every European country, since Ryanair, thanks to its website where you can buy tickets, was in every computer, which amounts to saying at home for most of European people nowadays. Market environment In the current market environment, the company is adapting itself to new preoccupations. Indeed, a growing consciousness of ecological disasters caused by pollution encourages governments to implement regulations to reduce fuel usage, emissions and noise. [...]