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Latest posts by Prudence K. Magezi(see all)

    This report uses Michael Porters five forces framework to examine Ryanair and the UK airlines industry in a post covid-19 environment in order to try and understand how the five forces are affecting the low cost airline and the impact on profitability.

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    Ryanair Porters Five Forces 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


    Porters Five Forces examines an industry’s profitability and attractiveness based on the level of rivalry among competitors, barriers to entry, bargaining power of buyers and suppliers, and threat of substitutes (Johnson et al 2017). According to Porter’s when all the forces are high, then the industry in unprofitable because powerful buyers, suppliers, high competitive rivalry, as well as threat of new entry and substitutes squeeze profitability (Grant 2016; Johnson et al 2017).   In this section, we leverage the Porters five forces framework to help us to recognize and analyses the important forces that determine the profitability of the airline industry. Using Porters five forces, we will evaluate the nature of competitiveness in the UK airline industry and how it is impacting Ryanair.

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