Ryanair Strategy Analyse

1729 Words7 Pages
Ryanair is a global airline which provides scheduled passenger airline services between Ireland and the United Kingdom. Starting in 1985 Ryanair followed the example of Southwest Airlines. It was set up with a share capital of just £1 and a new staff base of 25. Since 1985 to now it has grown massively into one of the Europe’s largest low fare carrier. In 1990 the company suffered a £20 million loss and was forced to completely restructure and a new management team was brought in headed by Michael O’Leary who made major changes to the airline. Ryanair restructured itself and became a low-fares, no –frills carrier. After the next few years Ryan air significantly slashed its fares further and managed to open up many new routes. Today, Ryan Air has destinations in 26 countries with 950 routes. Also the headquartered in Dublin, employs about 4,200 people, operates with a fleet size of 120 Boeing 737-800, carries approximately 35 Mio passengers a year and had a turnover of 1,692.5 Mio in 2006 with a net profitability of about 10% (Mayor, 2007). Furthermore revenue has risen from €231 million in 1998 to €2,714 million in 2008 and net profits have increased from €48 million to €480 million, over the same period despite the worldwide recession and the high oil prices. (4.1) External Environment Analysis Purpose of an external environment analysis is to identify or develop a finite list of opportunities that could benefit a firm and threats that could be avoided. Firms should be able to respond either offensively or defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize the impact of potential threats. The external analysis can be divided into macro environment and industry analyses. (4.1.1) Macro Environment Analysis There are several influences of macro-environment on Ryanair within their operating countries.

More about Ryanair Strategy Analyse

Open Document