Ryanair Airline

Executive summary

This report is analysis internal and task environments (Porter’s five forces) on the European airline industry include general airline and budget airline and identity Ryanair. After that, student needs to use SWOT to analysis on Ryanair. Finally, students need to mention how Ryanair to delivery the strategy.

Firstly, I read all of the information from case study, that mention a lot of Ryanair background, strategy, objective and competitors. After that, I started to my online research. I read the Ryanair and some of the competitors’ web-site. Then I printed out some of the useful document from Ryanair.

Ryanair is a budget airline. It provides intra-Europe flight service to passengers. The main based is in Dublin but now incline to central Europe. Ryanair provide low fare air ticket to competitive with competitors.

In Europe airline, local government can prevent new entrants appear in the market. Suppliers bargaining power is not strong. Buyer can easily to switch to another airline. And, airline industry needs to face substitute by ferry, train and car.

SWOT mentions external opportunity such as government expands airport; external threat such as EU new rules; internal strength economic scale and contract out of service; internal weakness fuel cost.

At the end of this report will describe different viewpoint of Ryanair and how company delivery strategy to competitive with competitors.

In European airline industry classify two types’ airline, general airline (mainstream airline) and budget airline. Mainstream airlines are not only focusing flight services and also provide ancillary services such as flight club, free movies. On the other hand, budget airlines are only provide flight service on their business and also most of the airlines are set up by mainstream. For example, easyJet, a subsidiary company set up by British Airway, provide service Glasgow and Edinburgh from London. Most of these airlines are lack of financial capacity, as a result, budget airlines will choosing more profitable routes to operate.

Ryanair is a budget airline in European. But it is not a subsidiary company; it provides sales promotion and good discount price on the air ticket. And, passages need to pay on ancillary service.

1. Five forces analysis

1.1 Supplies

Whole world plane produce by Boeing and Aircraft. These two companies are providing high technical product. All of the airline company who want to purchase new airplane must negotiate alternative. Two options to choice by airline’s company, it is difficultly to switch their suppliers.