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Critically Analyze the Current Strategy of Ryanair

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    This paper examined Ryanair’s Strategic Position, a leading low-cost airline in Europe. It explored how Ryanair aligns its strategy with its external and internal environment, and how it achieves a sustainable competitive advantage. The paper applied relevant frameworks namely; SWOT, PESTLE, Porter's Five Forces, Value Chain, and Generic Strategy. These frameworks help to identify the sources of Ryanair's profitability, efficiency, and differentiation in the airline industry.
    A strategic analysis of Ryanair and its business environment reveals a number of challenges and issues that the company must address if it is to be efficient in its operations and compete effectively with its rivals. Some of the recent macro and micro challenges include; Delays with Boeing 737 MAX planes which affected the company over the medium term, French ATC strikes, high costs of fuel, high inflation, rising interest rates, and the disruption caused by the Covid-19 pandemic among so many others. 
    A critical analysis of Ryanair showed the main threats and challenges that affect the low-cost airline market, such as political, economic, social, technological, and legal factors. It also identified the opportunities that the company can seize in the future. The analysis was conducted using a comprehensive and systematic approach, taking into account the internal and external environment of Ryanair and its competitors.
    Ryanair SWOT and VRIO analysis answers key questions such as; what strategy did Ryanair use? What are the most serious threats that Ryanair faces today? What are the strengths and weaknesses of Ryanair? What challenges does Ryanair face? What are the success factors of Ryanair? What is Ryanair's competitive advantage? What is Ryanair's competitive advantage?
    This report also provided several suggestions for Ryanair to overcome the difficulties it faces while pursuing growth and expansion in emerging markets. The suggestions are based on a thorough Strategic analysis of Ryanair showing its strengths, weaknesses, opportunities, and threats, as well as the external environment and the competitive landscape.

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    Critically Analyze the Current Strategy of Ryanair Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Gain insights into Ryanair by examining the airline's business model, strategy, key performance indicators, and governance. Identify its vision, mission, and current strategic objectives.
    • Examine the various internal and external factors that impact Ryanair’s strategic direction using SWOT, PESTLE, and PORTER’S FIVE FORCES
    • Learn how to apply strategic analysis to an organization

     

    1.0 INTRODUCTION


    Company Overview

    Ryanair was incorporated on August 23, 1996, and it has its headquarters in Swords, Dublin, Ireland. Founded in 1984, Ryanair is Europe’s largest airline, the largest low-cost carrier, and also one of the world’s largest airlines globally in terms of passenger numbers (Statista, 2023).  

    The company offers low-fare passenger airline services mainly in Europe. It also provides additional services such as non-flight scheduled services, Internet-related services, and the on-board sale of beverages, food, duty-free, and merchandise. Ryanair runs its activities through its subsidiaries namely; Buzz Airline, Lauda Europe Limited, Malta Air Limited, Ryanair DAC, and Ryanair U.K. Limited. 

    As of 2023, the company recorded a revenue of €10,775 million up from €4,801 million in 2022 and €1,636 in 2021 (Ryanair Group, Annual Report, 2023). Ryanair connects over 240 destinations across 36 countries. The company employs more than 22,000 employees. 

    This report is going to use the case study of Ryanair to examine the macro and microenvironment of the low-cost airline industry. The report will use frameworks such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies. It will also undertake a strategic overview of the company, including its financial performance, competitive microenvironment, competitive advantage, technological improvement, pricing strategy, and many others.

    Ryanair strategic analysis answers key questions such as; what strategy did Ryanair use? What are the most serious threats that Ryanair faces today? What are the strengths and weaknesses of Ryanair? What challenges does Ryanair face? What are the success factors of Ryanair? What is Ryanair's competitive advantage? What is Ryanair's competitive advantage?

    The report will conclude with suggestions and a discussion of strategies and tactics that could be used by Ryanair to respond to the major changes occurring in the low-cost airline market. 

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