The Development and Future Strategy of Ryanair Essays

Words: 1341
Pages: 6
Open Document
The development and future strategy of Ryanair

Ryanair became in 2009 the airline company which carry the most passengers in Europe. That is the result of its strategy which is based on a ‘no frills’ service in order to offer the lower prices. The business model of Ryanair is different from the classic carriers’ in the way that 20% of its revenue is generated from ancillary revenue, such as its “buy on board” program or extra fees for luggage. As we have seen above, the airline industry is very dynamic, and the apparition of alliances within the market forces Ryanair to stay competitive in its environment. Until now, the company did it very well by being emergent, its flexible structure and culture allowed Ryanair to be the number one …show more content…
Among other projects to cut costs,
• Ryanair is planning to run flights where passengers stand during the journey at a price of 5£.
• Carry-on luggage, no more check-in
• No more window blinds
• No more reclining seats.
• enter into new agreements with third party contractors for passenger and aircraft handling, ticketing and other services

The risk of cutting the costs:

Ryanair’s strategy is to give the customers the illusion of free or extreme cheapness. However, Ryanair is not cheap; they just created a blue ocean on managing revenue while giving the illusion of being cheap. There are two major risks in this strategy: first, the customers’ experiences and feedbacks are often negative after they discover they had to add taxes, fees and other extra money beside the ticket cost itself, and there are many complaints of unhappy customers, which constitute bad advertising for the company. Secondly, Ryanair is sometimes on the edge concerning the convenience of its flights: all these cost savings create inconveniences, such as extra transport from the secondary airports to the city centres (which sometimes turn the cost of the travel into a nightmare for the buyer at the original plane ticket price). In 2010, it is rumoured that one of Ryanair’s next revenue generation projects is to make passengers
Show More

Related Documents: The Development and Future Strategy of Ryanair Essays

Strategic Analysis for Ryanair to Enter China Essay

Strategic Analysis for Ryanair to Enter China Submitted in part fulfilment of the Master September 2010 STRATEGIC BUSINESS ANALYSIS (ULMS 719) University of Liverpool Management School 17 September 2010 Abstract Ryanair, the leader of low-fare carriers in Europe, will expand its business throughout the world. This report discusses the strategies which Ryanair entre the Chinese market. Through PESTEL analysis and SWOT analysis to have sophisticated understandings of the Chinese…

Words 8318 - Pages 34

The Developing Manager1 Essay

be discussing various managerial role, development, opportunities available to a manager and various managerial still. I will also be accessing various personal skills available to a manager with various managerial decision making styles and recommended improvement. Furthermore I will assess my own personal skills, analyse my personal strength, weakness, opportunities and threats. I will review my career development and evaluate current potentials and future aspirations. 1.1 The prospect of management…

Words 3304 - Pages 14

PESTEL of Rynair Essay

Management Module Ryanair Case Study Questions This report will prioritise to address clearly how to analyse and evaluate the findings of two questions. The selected company that will be used when completing this task is Ryanair which is known as 'the low cost fare airlines'. (Seminar Case Study, 2013). The first question is as follows; 'With reference to the Airline Industry and Ryanair cases analyse the competitive environment of the European airline industry in which Ryanair operates'. Introduction…

Words 2607 - Pages 11

Essay about Comparative Financial Analysis of Easyjet & Ryanair

Comparative Financial Analysis of Ryanair & EasyJet for financial years ending 2010, 2011 and 2012. Submitted by Muhammad Sufyan Sadiq CONTENTS Chapter No. Topics Page No. 1 Executive Summary ---------------------------------------------------------------------- -------------- 3 2 Introduction ------------------------------------------------------------------------------- 6 3 PESTEL Analysis ------------------------------------------------------------------------…

Words 12754 - Pages 52

Essay on PreFall 2 Notes

Day 4 Grant: Review Ch. 5, Skim Ch. 9 &10 Notebook: The Right Game Ryanair Financials Ryanair Discussion Questions Ducati Management Presentation Ducati Discussion Questions CHAPTER 5: 1) Analyzing Resources and Capabilities (internal environment) – Tools of Strategy Analysis a) The distinction between industry attractiveness and competitive advantage as sources of a firm’s profitability corresponds to economists’ distinctions between different types of profit (or rent) b) Resources – Productive…

Words 3187 - Pages 13

Marketing: Brand and Ncc Education Essay

and drinks provided but pay a premium, links to car hire and local hotel at each destination. Furthermore, Fly-it-cheap can provide services like buses from the airport to the centre of cities and charge customers for this convenience. This is what Ryanair does (Marketingteacher.com, 2010a). To encourage people to buy more food Fly-it-cheap could make a coffee smell in the airplane, so when customers smell this they will feel hungry and pay more. Price is ‘the amount of money customers must pay to…

Words 4927 - Pages 20

easyjet Essay

............................................................... 2 1.1 Theory ........................................................................................................................................... 2 1.2 Easyjet’s Business Development ................................................................................................... 2 1.3 EasyJet’s Current Business…

Words 12070 - Pages 49

Lufthansa Case Study

OVERALL PHASES OF ECONOMIC INTEGRATION The development in the air transport sector can overall be described through the three packages from the EU, with the aim of liberalizing and integrating the sector and reaching a common market. The common contents of all packages are the license to operate, access to market and rules relating to price setting and competition. Previously, the air sector industry was characterized by several larger national airlines set up as “full service network carriers…

Words 3027 - Pages 13

Strategic Management Essay

range 40 to 49%. Corporate Strategy UGB319 Comparison of Two Models 2 CONTENTS Introduction……………………………………………………………………………..3 Overview and Critique of Theory 1 Overall Cost Leadership…………………………………………………………… 4­7 Differentiation……………………………………………………………………….. 7­9 Focus…………………………………………………………………………………....9 Overview and Critique of Theory 2 Market Penetration………………………………………………………………….. 10 Market Development………………………………………………………………… 11 Product Development…………………………………………………………………

Words 3313 - Pages 14

Essay Use Of The PLC In Strategic Marketing

cycle (PLC) looks like a very simple and basic concept of how a product and it’s marketing mix progress through the different phases: introduction, maturity, growth and decline. One of the potential uses of the PLC is that it guides companies on what strategy to use in each phase. However, it is limited in that it is based on the metaphor that products are like living things and therefore inevitably die. This can cause complications; as such metaphors are not always accurate. While the text book PLC is…

Words 1669 - Pages 7