An analysis of Ryanair competitiveness

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An analysis of Ryanair competitiveness

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Ryanair competitiveness, United Kingdom, Tony Ryan

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Abstract

This report illustrates an analysis of Ryanair competitiveness, adaptation to the macro-level factors in the United Kingdom and factors contributing to its current success. Initially, the Porter's five-force model entails analysis of the threat posed by buyers, suppliers, industrial rivalry, substitutes and entrants. Here, the company competitiveness is addressed based on strength posed by above-mentioned forces. Secondly, Ryanair adaptations to the macro-level environment is demonstrated in response to political, economic, social, technology, environment and legal climate in the UK. Besides, evaluation of the main stakeholders in the company, the report concludes in analyzing factors contributing to Ryanair success.

Since Tony Ryan broke the aviation duopoly in London-Ireland flights, Ryanair has generated a turnaround in the European aviation industry. Over the years, the company has rivalled the legacy carriers across Europe by positioning its services as a low-cost carrier. Although criticized for its aggressive competition policies, Ryanair cost leadership amidst expensive air travel arises from its flat management decisions converging at low-cost carriage and aircraft optimization.

Executive summary
Introduction
Porter's Five Forces Analysis
How Ryanair Adapts to the PESTEL Factors in the UK?
Conclusion

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[...] An analysis of European low-cost airlines and their networks. Journal of Transport Geography 249-264. Dudovskiy, J. (2012, September 10). Analysing Competitive Environment for Ryanair. Retrieved January from http://research-methodology.net/ryanair-porters-five-forcesanalysis/ Hoskisson, R. E., Hitt, M. A., & Ireland, D. (2008). Competing for Advantage. Mason: SouthWestern. Nwagbara, U. (2011). Homing in on Paradigm Shift: Ryanair Leadership in the Age of Expensive Air Travel. [...]

[...] In response to passenger complaints, Ryanair has modernized their operations to improve on punctuality and fewer cases of lost luggage. Considering their social bond with passengers sustained through their pocket-friendly flight charges, it has established a reason why Ryan air is the favourite airline (Ryanair p. 6). Technology The company has runs online booking of flights through their homepage to avoid potential inconveniences associated with accessing travel agencies. This enables Ryanair optimizes on their seat allocation maintained through a first-come-first served basis to secure maximum revenue at 85% book rates. [...]

[...] Owing to their increasing market share in the Europe, Ryanair constantly adjusts their operations to suit the political environment. The company encounters higher winter charges at governmentowned airports, thus forcing commercial grounding of a section of its fleet to avoid suffering operation losses. In addition, the company commits to expedite the sale of Stansted Airport to revert the declining traffic owing to the mismanagement of the Ferrivial-owned airport. Besides working with the Competition commission, Ryan air has entered into agreements with interested parties, willing to bid for Stansted, with assurance of initiating a competitive terminal and delivering rapid growth of traffic (Ryanair p. [...]

[...] Firstly, economies of scale yields cost advantages associated with expanding business activities, thus making it complex for new entrants. Particularly, established airline companies including Ryanair and British Airways enjoy increasing economies of scale, thus experience declining operation cost per unit 5 (Hoskisson, Hitt, & Ireland p. 80). Moreover, entrants require huge capital investments, including purchasing physical facilities, acquisition of aircrafts, inventory management, attracting qualified personnel and access to distribution channels. Considering that airports assume gradual adjustments due to financial resources required to generate additional slots for more airlines, it poses a considerable barrier for entrants to secure distribution channels (Dudovskiy, 2012). [...]

[...] Final Annual Report . Retrieved January from http://www.ryanair.com/doc/investor/2012/final_annual_report_2012_310712.pdf Szymanski, A. (2011). The Competitive Analysis of Commercial Aircraft Industry” GRIN Verlag. Munchen: GRIN Verlag. Walsh, C. (2011). Airline Industry: Strategies, Operations and Safety. New York: Nova Science Publishers. [...]

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