The paper "internal Situation of RyanAir Company" is a great example of a business case study. The purpose of this report is to outline the technique of evaluating the internal situation of RyanAir Company. The analytical spotlight will be on RyanAir airline so as determine both the positive and negative side of the company, its S. W.O. T analysis as to identify its alternative strategies and evaluate each alternative strategy keeping in mind internal and external factors. Finally, the report will make a suggestion as to how to company can implement the chosen strategy as well as a control system to give feedback so as to ensure the recommended strategy is carried out 1.2 Introduction Ryanair is an airline that is popularly known all over the world for the largest Low- cost Airline in Europe.
RyanAir is characterized by rapid expansion in relation to the number of passengers, a feature that makes it the 3rd largest airline in Europe (RyanAir n. d). In relation to the number of international passengers who use this airline, the company is the largest European Airline. From when the company was started in 1985, RyanAir has been growing rapidly.
RyanAir’ s first aircraft was a Turboprop aircraft which was a 15-seat aircraft that operated on the route between Waterford and London Gatwick. A 2nd flight route was added in 1986 which was between Dublin and London (RyanAir n. d). With only two flights operating on two routes, the airline served 82,000 passengers. The airline’ s passengers continued to increase while the company continued to make losses. It is then that the company implemented the ‘ no frill’ and low-cost service which saw the company eliminating the business plan and introducing the single model aircraft.
This saw the airline increased the number of passengers to 2.25 million by the year 1995. When European Union (EU) de-regulated, it opened up more new dimensions for RyanAir since it allowed any carrier from any of the EU County to offer its services in other EU countries (Allé 2007). RyanAir took advantage of this opportunity and launched its services in Stockholm, Charleroi and Paris where it increased its profits and in 1995, the company placed a big order worth $2,000,000 of 45 Boeing 737-800 aircraft.
Ryanair launched its new website in the year 2000 which allowed passengers to do online booking which in turn helped it to cost cut by doing away with the travel agents. The airline opened a new hub in South Charleroi Airport in 2001 and it also ordered another 155 Boeing 737-800 aircraft and by 2002, the company had opened 26 new routes and another new hub Hahn Airport. In the year 2003, the company ordered for another 100 Boeing 737-800 aircraft, acquired BUZZ from KLM and flew in 127 routes.
The company made a loss of € 3.3 million in the 2nd half and that was the first-ever made loss for a long time. In 2006, the company made a profit increase of 80% and the number of passengers rose to 10.7 million. The company has continued to move ahead with its business on the basis of excellent customer service and strong values (Allé 2007). 2.0 positive and negative sides of RyanAir 2.1 The positive side of RyanAir The main object of RyanAir is to establish itself as Europe’ s leading low fare schedule customer airline by improving and expanding the offering of its low fares services.
A continuous focus on operating efficiencies and cost containment is a vital part of the Ryanair way of doing things (Johnson et al 2007). Here are the key elements which make RyanAir attractive.
Allé M. M (2007) Ryanair Plc Retrieved on 16th April 2011 from http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf
Airscoop (2009) SWOT Analysis of Ryanair Retrieved on 16th April from http://www.air-scoop.com/downloads/SWOT_Ryanair_Air-Scoop.pdf
Case “Ryanair” from Johnson, G., Scholes, K. & Whittington, R, (2007) Exploring Corporate Strategy, Harlow: FT/ Prentice Hall, 8th Edition pages 694 – 707
Dian Ratnasari (2007) RyanAir Case Retrieved on 16th April from http://www.scribd.com/doc/18152552/RyanAir-Case
RyanAir (n.d) History of RyanAir Retrieved on 16th April from http://www.ryanair.com/en/about
Kotelnikov V (2011) Why Strategy Implementation Is So Difficult Retrieved on 16th April from http://www.1000ventures.com/business_guide/strategy_implementation.html