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Adesuyi , Ibukunoluwa(@00284075) Agbelusi, Oluwafisayo Tola(@00299101) Ibiloye, Omotoke Seyi(@00289980) Ogunbor, Osarobo Naomi(@00291067) Orija, Oluwabusola(@00295120) Uchealor, Bill-Anthony(@00284390)

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Business environment of Ryanair Pest Analysis Porters five forces Strategic group analysis Value chain analysis Resource based view Leadership style of Michael O'Leary Conclusion and recommendations

Airline industry

PEST
Budget airline industry

PORTERS FIVE FORCES


Ryanair

STRATEGIC GROUP

Political factors Deregulation as the market increases in size, therefore economies of scale may arise. Expansion of EU Economic factors Recession September 11 crisis Social factors Changing consumer demographics Technological factors Fluctuating consumer preferences increase in economies of scale in production due to expanding market size E-commerce method of selling tickets, therefore less infrastructure required, overhead savings

Threat of New Entrants MEDIUM High capital investment Barriers of entry Threat of existing firms

Industry Competitors Suppliers Bargaining Power MEDUIM Switching cost Rivalry Among Existing Firms HIGH High degree of competition Buyers Bargaining Power HIGH Low switching cost Price sensitivity Low loyalty

Threat of Substitute Products MEDIUM Main: Land, rail and water Indirect: video conferencing

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Strategic Group Map of Ryanair: Easyjet, Aer Lingus and Ryanair are in the same strategic group and so compete closely. The Critical Success Factors (CSFs) of Ryanair are as follows: The strategic focus of having the lowest prices. Being reliable in the industry for punctuality. Service and frequency.

Infrastr. Low Cost HRM Training Tech. Dev. Internet Proc.


Boeing Discount

Minimum Corporate HQ
Limited Crew Management Control Integrated Systems

In-house
Low Tech Marketing Internet Sales

Performance Contracts

Internet Information

Alliances
No Frills Low Cost*

Outsourced

Low Cost
Low Cost Promotions Free Publicity Controversial Internet Sales Yield Management

Quality Training Low Cost Suppliers Airport Agreements

Quick Turnaround time Reliable Service

Limited Resources Basic/Low Cost High Productivity

Inbound Logistics

Operations

Outbound Logistics

Marketing & Sales

Service

THRESHOLD RESOURCES Website Operations denominated in Euro Offices, facilities, appropriate personnel, suppliers and customers

UNIQUE RESOURCES Brand name(Ryanair) Management team(Micheal Oleary) Number one low budget airline Boeing airplanes

THRESHOLD COMPETENCES Outsourcing of major services Online booking Operation of on-time delivery Point to point routing

UNIQUE COMPETENCES No frills strategy Reduced turn-around time Low cost Route policy strategy

Autocratic style of leadership Determining strategic direction. Effectively managing the firms resource portfolio. Exploiting and maintaining core competences. Developing human and social capital. Sustaining effective organisational culture.

Improve customers perception of Ryanair ` Improve its oil hedging and currency trading practice. ` Expand into Eastern Europe and North Africa countries. ` Succession planning. ` Continue its market penetration plans especially their strategic alliance with Aer Lingus. By applying the above recommendations, Ryanair will definitely maintain its leadership position in the budget airline industry. http://www.youtube.com/watch?v=g3so6AJe4UQ
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