1.

0 Introduction
1.1 Contents of this report: This report consists of four main parts: 1) General description of Ryanair- its beginnings, expansion, its competitors and business model. 2) A study of the current strategy adopted by Ryanair 3) A study of the environmental analysis of Ryanair- SWOT analysis and Porters 5 force model 4) And lastly, a recommendation of the strategies undertaken for Ryanair to remain competitive in the business.

Ryanairs History Ryanair was formed by Tony Ryan and his sons in 1985. Michael OLeary, Tonys assistant1, was appointed as CEO in 1990. He started restructuring the airline based on Southwest Airlines low cost model. Southwest was Americas most profitable carriers and their business model was quite different than the traditional flagship carriers2. Despite the Gulf War broke out in 1991,Ryanair recorded its first profits. This is amidst the decline in overall airline traffic. International Expansion:
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http://www.fundinguniverse.com/company-histories/ryanair-holdings-plc-history/ http://www.sbaer.uca.edu/research/allied/2005vegas/case/05.pdf

1997 saw the liberalization of the European skies3, and Ryanair launched its first four European routes. In 2000, www.ryanair.com was launched, and it became the only source of the lowest airfares in Europe4. In 2003, the rival Buzz from KLM was acquired for 23.9m Euros; in 20035 Industry Competitors: 1. Aer Lingus 2. British Airways 3. easyJet 4. Virgin Express 5. Lufthansa 6. Air France
7. Other small airlines in Europe.

Business Model: Low-costs + No Frills = Low Fares = Ryanair Ryanairs management strive to reduce or control four of the primary expenditure involved in operating an airline: personnel productivity, aircraft costs, airport access and handling costs and customer service costs. Low costs mean cheap ticket prices that are sold in large volumes, generating profit.

Understanding the External Environment of Ryanair A study and understanding of the business environment is crucial part of planning, which allows one to discern the threats and opportunities associated with Ryanairs business6. A PEST analysis would assist in identifying the main opportunities and threats of the market. A SWOT analysis, requires the need to look for opportunities that plays to Ryanairs strengths. It is then decided on what should be done about the threats to the business and how to overcome important weaknesses. Lastly, Michael Porters 5 Force Analysis model is applied to better identify factors that shape the character of the competition, to assess the structural

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http://www.fundinguniverse.com/company-histories/ryanair-holdings-plc-history/ http://www.ryanair.com/en/about 5 http://www.guardian.co.uk/business/2003/jan/31/money.cheapflights 6 http://www.businesslink.gov.uk/bdotg/action/detail? itemId=1075313215&type=RESOURCES

attractiveness and business value of any industry and to pinpoint strengths and weaknesses in a company7.

http://www.markintell.com/porters-five-forces-analysis/