Ryanair Case Study

Résumé du document

Ryanair was founded in 1985 by Tony Ryan and family (with a share capital of only £1 and 25 employees) in Ireland.
The company is essentially dedicated to medium haul flights for the European continent (26 European countries are served by Ryanair) and the nearest areas like the Maghreb.

This company followed the low-cost trend which began in the United States with the first airline company adopting a low-cost policy (Southwest).
Ryanair progressively acquired a great reputation across Europe thanks to the low fares of its flights and became one of the biggest airline companies in the world.
It is even the first carrier in Europe in number of passengers per year (more than 40 million in 2007).

Nevertheless, it remains that some people are not sure of the quality of the company (its low cost strategy) and wonder how the passengers can be in safety if the tickets are so cheap.

The airline is indeed in a very specific market where customers really give importance to safety (the terrorist attacks of 9/11 reinforced this attempt).

Moreover, Ryanair has the reputation of having an anti-social attitude with its employees and a lot of people do not agree with this social policy.

Extraits

[...] How to improve Ryanair's e-business? Concerning the sale of tickets, it appears impossible to change this strategy because it is an entire part of the business model and because it largely participates in the reducing of costs. Nevertheless, Ryanair could progressively develop its presence in the airports and keep in the same time important advantages for on-line sales in order to maintain these kinds of sales. Ryanair's goals in terms of e-business should be to improve the communication in order to attract more potential customers. [...]

[...] Nevertheless, Ryanair achieved the goal of all the airline companies by providing a cheap solution to its customers with the best customer service of the European carriers. To conclude this part, we saw that a good e-business strategy is very profitable for a company in terms of activity and revenue and also in terms of quality and quantity of services that the company can offer to satisfy its clients. In this way we can notice that the additional offers (e-services and partnerships) largely participated in the impact of e-business on Ryanair's growth. [...]

[...] Ryanair progressively acquired a great reputation across Europe thanks to the low fares of its flights and became one of the biggest airline companies in the world. It is even the first carrier in Europe in number of passengers per year (more than 40 million in 2007). Nevertheless, it remains that some people are not sure of the quality of the company (its low cost strategy) and wonder how the passengers can be in safety if the tickets are so cheap. [...]

[...] When we see the results and the success of Ryanair, this pricing process seems to be very efficient. Nevertheless, this successful process could not work without the use of Internet because it is the most reactive support. It allows the company to have only one sales area and to have the occupancy rate or the number of visitors on the website. The development of the e-services Ryanair also decided to offer to its client's different additional services in order to facilitate their trip. [...]

[...] When the client is on the Ryanair's website, he can indeed see a lot of offers from other companies. These additional services are linked to his travel, such as booking a room in a hotel or a parking place or renting a car. In fact, Ryanair is now a kind of travel agency where it is possible to quickly organize a trip in a European city at the lowest price possible. As we have explained before, these partnerships allow Ryanair to earn a lot of money thanks to its commission on the sales, that's why they have become so important in Ryanair's strategy. [...]