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Latest posts by Mariam Peyton (see all)

    This report uses Michael Porters five forces framework to examine Ryanair and the UK airlines industry to try and understand how the five forces are affecting the low cost airline and the impact on profitability.

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    Ryanair Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
    • Analyse the UK airline industry industry and how the five forces have affected Ryanair and rival firms like EasyJet, Norwegian Air, British Airways etc. and the impact on industry structure, attractiveness, and profitability.
    • Understand how Ryanair has managed to defend against intense competition from EasyJet, and Norwegian Air and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.

     

    Analyse Ryanair through the lens of Porters five forces to assess how the five forces affect it and the Airline industry in the UK.

    1.0 INTRODUCTION


    Ryanair is an irish budget airline founded in 1984. with its headquarters in swords Dublin Ireland. Ryanair is Europe’s largest airline and the world’s fifth airline with more than 2000 daily flights. the airline has become the first in European airlines to carry over 1 billion customers in 2017. Ryan air’s subsidiaries include; laud motion, viva air Colombia and Ryan Atlantic among others.

    Due to its low cost business model, Ryanair has had a steady growth with its revenue growing year on year. as of 2017, the company’s turnover was £6,647 million from £6,537millions in 2016 while adjusted profit rose by 6% from £1,242 million to £1,316 million (annual report 2017).

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