Ryanair: A strategic analysis

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Ryanair: A strategic analysis

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Abstract

Ryanair is a low-cost airline that was founded in 1985 by Tony Ryan. It began in Ireland, with a capital of one Irish pound or 1.23 Euros and 25 employees. The newly created company proposed to start flights between London and South East Ireland on a plane with just 15 seats.

The company is, today, the leading low cost airline and was recorded to have served 40 million passengers in 2006 alone. It is also the third biggest company in France with 3 million passengers. The company is very healthy, judging from the sales and monetary growth that it recorded between 1998 and 2003. Its turnover increased from 231 million Euros to 848 million Euros and profits rose from 48 million Euros to 239 million Euros.

Tags - Tony Ryan, Ireland, Ryanair

Introduction
The concept of corporate culture
1. Corporate culture
2. Business culture
3. Regional culture
How can we observe culture?
1. Myths
2. The craft
3. Values
4. Taboos
5. The symbols
6. Rites
7. Languages
8. Dress codes
Corporate culture: management, functions and limits
1. Culture and management
2. The limits of corporate culture
Conclusion

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[...] Ryanair: A strategic analysis Introduction of the company. Ryanair is a low cost airline, created in 1985 by Tony Ryan with a capital of an Irish pound or 1.23 euro and 25 employees. The newly created company proposed to start flights between London and the South East of Ireland on a plane with 15 seats. The company is today the leading low cost airlines “with 40 million passengers in 2006. It is also the third largest airlines in France with 3 million passengers.” The company is very healthy, with sales and earnings growth: - From 1998 to 2003 the turnover had increased from 231 to 848 million and had profits of 48 to 239 million euros. [...]

[...] Current context Ryanair had to face problems in the year 2008. - The company saw its profits fall by 85% in first quarter 2008/2009 due to soaring oil prices: 25 million instead of 138 million. - In late November it announced that it will temporarily stop serving seven destinations - However in November: + 11% more passengers. - Early December: new takeover bid for Aer Lingus. Takeover bid for Aer Lingus Aer Lingus is the national airline of the Irish Republic, founded in 1936. [...]

[...] In 2008 there had been crisis: Ryanair launched new bid for Aer Lingus at € 1.40 per share or 748 million for the entire capital. These would be modeled on the Air France KLM, in holding the two companies keeping their bodies and cultures. Objectives of this merger for Ryanair: - Create an Irish company carrying 50 million passengers. - Compete with large Holdings in the aviation sector: Air France - KLM, Lufthansa-Swiss . In fact the airline industry trend is consolidation. [...]

[...] Ryanair then put the impact of the crisis on small shareholders who held 30.8 capital. Similarly the company hoped to convince some of the employees by not promising any particular job cuts. The Irish government could also see an advantage to recover 300 million euros. Finally Brussels seems more in favor of more consolidation in the airline industry but the chairman of Aer Lingus said that an investor is looking to take a majority stake in Aer Lingus, pointing out that Air France - KLM would be a much better option . [...]

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