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Essay / Ryanair Airline - 1873
Summary This report is an analysis of the internal environments and tasks (Porter's five forces) on the European airline industry, including general airlines and low-cost airlines, as well as the identity of Ryanair. After that, the student should use SWOT to analyze Ryanair. Finally, students should mention how Ryanair implemented the strategy. First of all, I read all the case study information, which mentions a lot of information about Ryanair's experience, strategy, objective and competitors. After that, I started my research online. I have read the website of Ryanair and some competitors. Next, I printed out some useful documents from Ryanair. Ryanair is a low-cost airline. It provides an intra-European flight service to passengers. The main company is based in Dublin but is now moving towards Central Europe. Ryanair offers cheap flight tickets to compete with its competitors. In European airlines, the local government can prevent new entrants from entering the market. The bargaining power of suppliers is not strong. The buyer can easily switch to another airline. And the airline industry faces substitutions by ferry, train and car. SWOT mentions external opportunities such as government airport expansion; an external threat such as new EU rules; internal strength, economic scale and decommissioning; Internal low fuel cost. At the end of this report, we will describe different views of Ryanair and how the company's delivery strategy is competitive compared to its competitors. In the European airline industry, two types of airlines are classified, general airlines (mainstream airlines) and low-cost airlines. Mainstream airlines do not only focus on flight services but also provide ancillary services such as flight clubs and free movies. On the other hand, budget airlines only provide flight services as part of their business and most airlines are also established by the general public. For example, easyJet, a subsidiary created by British Airways, flies to Glasgow and Edinburgh from London. Most of these airlines lack financial capacity, therefore, low-cost airlines will choose more profitable routes to operate. Ryanair is a low-cost airline in Europe. But it is not a subsidiary; it offers sales promotion and good discounted price on air ticket. And the passages must pay on the incidental service.1. Five Forces Analysis1.1 SuppliesWorldwide aircraft produced by Boeing and Aircraft. These two companies provide high-tech products. All airlines wishing to purchase a new aircraft must negotiate an alternative. Two options to choose from depending on the airline, it is difficult to change supplier.