Group Members -:-

1. Mr Olayinka Oladeji Omojayogbe

2. Mr Abdueraouf Ebhialil

3. Ms Laura Lucbert

4. Mr Reaz Ahmed

5. Mr Mohamed Mifras Mohamed Zain

Strategic ManagementGroup no: 10

INTRODUCTION

Founded in 1985 by the Ryan family

Currently headquartered in Dublin, Ireland

Michael O’Leary took over in 1991

Currently the largest European airline, and the sixth largest airline in the world.

Started with two classes of seating, which are business class and economy class

The company changed its business model dramatically in the 90s, implementing

cost-leadership strategy, utilizing disruptive innovation outsourcing strategy, and

market segmentation focus

Operate under its own new single fleet of Boeing 737-800 model type planes to

keep aircraft maintenance cost low

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Critical Success Factors (Activity Map) (2)

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Critical Success Factors (Activity Map) (2)

Limited passenger amenities – Reduced leg room, limited passenger’s luggage

weight and have to pay for in-flight services.

Frequent reliable departures – Averaged 1270 per day in Sept 09.

Lean productive ground and gate crews – Ticketing and check-ins mainly

online.

High aircraft utilization – 2009, load factor averaged at 85%.

Low ticket prices - on the basis of the demand, selling 70% of seats at the

minimum available fare assigned for the route.

Short-haul, point-to-point routes – Flying frequently to secondary and regional

airports, with an average flight duration of approximately 1.2 hours.

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Ryanair’ sustainability

Ryanair focuses on three areas:

High volume : filling as many seats as possible. Michael O’Leary, CEO says “ buy more and sell it at low prices” (Felsted, Nov 2003)

Load factor : number of seats sold as a proportion of those seats available on each flight. Ryanair flew 11.3 millions passengers in 2003, 45 % up on 2002.

Reducing every cost : booking via internet (less administration costs), aircraft operated on tight schedules (every 25 minutes) allowing more

flights a day. Passenger Traffic 2002/2013

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Ryanair’s Cost Savings chart

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Competitive advantages

Traditional cut fares on short haul flights

Scrap conditions on short haul flights

Decreased cost on domestic flights :

Larger aircraft, 1 passenger class

Reduced in-flight service, internet booking

Low fares subsidiaries

Mixed model : full service vs. low cost Focuses on low cost.

Revenue Generation Ancillary services : car rental, travel insurance,

accommodation

In-flight services (captive audience) : online shopping, food & beverages, alliances, magazines

Online bookings Ticketless boarding One class travel Unallocated seats Flying to the secondary airports Point to point flying In house marketing No frills Reduced turnaround times No refund policy Corporate partnerships No cargo service Bargaining power New aircrafts Owns own fleet Operations denominated in euro Hedge fuel risk Highly successful ancillary

service offering Outsourcing of services at

international Airports 6

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Value Chain

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EXTERNAL ANALYSIS : Porter’s 5 forces

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Strategic Positions

Ryanair's strategic activity map.

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Strategic Trajectories: Generic Strategies

Cost Leadership:Lowest Cost

airline in Europe

Uniqueness:Low cost full

service airline. Innovative and

focused.

Focus:Niche market/

focus

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Red Ocean & Blue Ocean Strategies

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Ryanair Blue & red ocean Strategy Matrix

Compete in Existing Market

Beat the Competition

Create and Capture New demand

Break the Value-Cost trade off

Align the whole System of the Company’s activities in pursuit of differentiation & Low-cost

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Innovation strategy

Drop Cost Structure

Lifts Buyers Value

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Key strategic trajectories

1985-1995

Low fare

Rapid Expansion

Investment Efficiency

High frequency flight Formula

1996-2004

Rapid growth in UK market

No 1 European Airline

Europe’s largest booking website

Complete Travel package (e.g. Ancillary, Hotel Accommodation; Travel Insurance; rail services)

Customer Satisfaction (e.g.

Punctuality, Fewer flight cancellation; Less lost baggage; Stuffing and Control)

Beat the competitors (e.g. Lufthansa)

Use of Massive media

Internet possessions

2004 to present

Rapid Expansion in Europe

Sales and cost control

Profit maximisation

Passenger growth

Acquisition of new Boeings

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Conclusion

Ryanair is Europe’s only ultra-low cost carrier (ULCC), operating more than 1,600 daily flights (over 500,000 per year) from 57 bases, across 1,600 low fare routes, connecting 180 destinations in 29 countries and operating a fleet of 303 new Boeing 737-800 aircraft.

Low cost, frequent flights, and other strategic innovation has helped the company to becomes Europe’s the largest airline service provider.

Strategy, innovation and business model is the key to Ryanair's success.

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