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.