Strategy Development
Ryanair
By Rosita Mickeviciute
1
,Contents
Strategy Development...........................................................................................................................1
Ryanair...................................................................................................................................................1
By Rosita Mickeviciute...........................................................................................................................1
Introduction...........................................................................................................................................3
Strategic Analysis:..................................................................................................................................4
External..................................................................................................................................................4
Internal..................................................................................................................................................8
SWOT Analysis.......................................................................................................................................9
Strategic Options and Evaluation:........................................................................................................10
Market Development...........................................................................................................................10
Overseas Expansion.............................................................................................................................12
Strategy Implementation.....................................................................................................................15
Conclusion...........................................................................................................................................16
References...........................................................................................................................................17
Introduction...........................................................................................................................................3
Strategic Analysis...................................................................................................................................3
External.................................................................................................................................................3
Internal..................................................................................................................................................7
SWOT Analysis.......................................................................................................................................9
Strategic Options and Evaluation.........................................................................................................10
Market Development..........................................................................................................................10
Overseas Expansion.............................................................................................................................11
Localisation..........................................................................................................................................13
Strategy Implementation.....................................................................................................................14
Conclusion...........................................................................................................................................15
References...........................................................................................................................................17
2
, Introduction
Ryanair Holdings plc is Europe’s biggest airline group, offering short-haul flight service to
200 destinations and carrying over 153 million passengers per year (Ryanair Corporate,
2019). Company’s revenue reached £7.6 billion this year with nearly a £1 billion increase
from last year (Ryanair, 2019). Firstly, Ryanair started offering cheap flights as sales
promotion and later rearranged the sales system into a business model (BBC Newsnight,
2017). This has led to no-frills strategy adopted into their core activity – transporting
passengers rather than providing luxurious service (Caputo, 2016).
‘Strategy is the long-term direction of an organization’ (Johnson et al., 2017:4). It plays a vital
role in determining company’s competitive position in the marketplace. Also, the set of
activities that deliver an exceptional value to customers are incorporated in business
practices (Braun et al., 2019). This links to Ryanair’s objective ‘to establish itself as Europe’s
biggest scheduled passenger airline group, through continued improvements and expanded
offerings of its low-fares service’ (Ryanair, 2019:74).
Corporate social responsibility (CSR) is the stimulus for businesses to create prosperous
economies while caring for society at large and environment (WBCSD, 1998). Ryanair
operates at lowest emissions and lowest fares in Europe with 67g of CO2 per passenger/km
as in November 2019 which is lower than its main competitor’s easyJet (Ryanair Corporate,
2019). The airline has agreed to support Ten Principles of UN Global Compact (2018,
[online]) ‘in the areas of Human Rights, Labor, Environment and Anti-Corruption’.
3
Ryanair
By Rosita Mickeviciute
1
,Contents
Strategy Development...........................................................................................................................1
Ryanair...................................................................................................................................................1
By Rosita Mickeviciute...........................................................................................................................1
Introduction...........................................................................................................................................3
Strategic Analysis:..................................................................................................................................4
External..................................................................................................................................................4
Internal..................................................................................................................................................8
SWOT Analysis.......................................................................................................................................9
Strategic Options and Evaluation:........................................................................................................10
Market Development...........................................................................................................................10
Overseas Expansion.............................................................................................................................12
Strategy Implementation.....................................................................................................................15
Conclusion...........................................................................................................................................16
References...........................................................................................................................................17
Introduction...........................................................................................................................................3
Strategic Analysis...................................................................................................................................3
External.................................................................................................................................................3
Internal..................................................................................................................................................7
SWOT Analysis.......................................................................................................................................9
Strategic Options and Evaluation.........................................................................................................10
Market Development..........................................................................................................................10
Overseas Expansion.............................................................................................................................11
Localisation..........................................................................................................................................13
Strategy Implementation.....................................................................................................................14
Conclusion...........................................................................................................................................15
References...........................................................................................................................................17
2
, Introduction
Ryanair Holdings plc is Europe’s biggest airline group, offering short-haul flight service to
200 destinations and carrying over 153 million passengers per year (Ryanair Corporate,
2019). Company’s revenue reached £7.6 billion this year with nearly a £1 billion increase
from last year (Ryanair, 2019). Firstly, Ryanair started offering cheap flights as sales
promotion and later rearranged the sales system into a business model (BBC Newsnight,
2017). This has led to no-frills strategy adopted into their core activity – transporting
passengers rather than providing luxurious service (Caputo, 2016).
‘Strategy is the long-term direction of an organization’ (Johnson et al., 2017:4). It plays a vital
role in determining company’s competitive position in the marketplace. Also, the set of
activities that deliver an exceptional value to customers are incorporated in business
practices (Braun et al., 2019). This links to Ryanair’s objective ‘to establish itself as Europe’s
biggest scheduled passenger airline group, through continued improvements and expanded
offerings of its low-fares service’ (Ryanair, 2019:74).
Corporate social responsibility (CSR) is the stimulus for businesses to create prosperous
economies while caring for society at large and environment (WBCSD, 1998). Ryanair
operates at lowest emissions and lowest fares in Europe with 67g of CO2 per passenger/km
as in November 2019 which is lower than its main competitor’s easyJet (Ryanair Corporate,
2019). The airline has agreed to support Ten Principles of UN Global Compact (2018,
[online]) ‘in the areas of Human Rights, Labor, Environment and Anti-Corruption’.
3
