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Transcript of RyanAir
Joyce Dadzie Introduction Five Forces Conclusion The world’s favourite airline operating over 1,500 flights per day from 51 bases on 1,500 low fare routes across 28 countries, connecting over 168 destinations.
Ryanair has a team of more than 8,500 people and expects to carry over 80 million passengers in the current fiscal year.
set up by the Ryan family in 1985 with a share capital of just £1, and a staff of 25.
By 2011 their traffic grew by 5% to 75.8m passengers with our average fare of just €45 and no fuel surcharges, despite a sharp increase in fuel costs. About Ryanair
European Union (EU) expansion
New EU regulations POLITICAL PESTL Recession(Advantage)
Fuel price increases
Hidden costs for customers ECONOMICAL customer complaints(bad experience)
bad reviews from trip adviser
low security and safety procedures
poor treatment of disabled passengers
changes in consumer preferences SOCIAL Keeping up with technological changes (phones, online games, advertisements)
Online booking for tickets-making Ryanair reliant on technology
technological advances will be beneficial
Increased internet competition Technological Legal action against online agents for breaching terms and conditions
Legal action taken against Ryanair for 3 emergency landings in Spain LEGAL Competition is high Existing Competitive Rivalry Potential Entrants Only two aircraft manufacturers/suppliers (Boeing and Comac)
Ryanair is dependent on their suppliers (standardised planes) Buyers Ferry
Cars Substitutes Suppliers Low cost leadership strategy
Horizontal integration (Bought Buzz, 30% share in Aer lingus)
Vertical integration (Stanstead airport) Strategy Difficult to enter
Access to distribution channels (gates and landing slots) High bargaining power from customers
other airlines are trying to imitate Ryanair
Easy to switch loyalty Ryanair has survived on low cost strategy
What happens if it buys Aer lingus?