BUSINESS POLICY AND ANALYSIS

Business Policy and analysis - Ryanair

Business Policy and analysis - Ryanair

Abstract

In 2008, the economic of recession have heavily affected almost all of industries. The crude oil price experienced a comic performance. The price difference is turbulent from top to down. So, what about air industry? When the crude oil price is high, the air companies have to face a high-cost burden. But when the price is down, the economic has fallen that means the need for travelling, business and transportations are declining.

Today, we need to analyze the Ryanair—an air company in EU, which famous on his low price of running business way. This company is running different fly routes in EU. With the development in these 10 years, the Ryanair's low price strategy attracts many customers. It offers consumers an opportunity to travelling or visiting friends in a cheap way. Now, it has been a successful model in air industry and facts show this kind of strategy is accepted by consumers. But when this kind of model proves it is successful and profitable, the new entrants will join this game. Sometimes it always copies the previous one. For example, similar price of strategy, the same way of business running process and same demography.

The aim for this report is to make use of different ways to analyze the environments in Ryanair Company. To get some useful information and clues, we have to look for more materials to refer and use our understanding to write down the report.

Introduction to the Ryanair

Ryanair is the Irish low cost company. Its headquarters is in Dublin and its largest operational bases are at London Stansted Airport and Dublin International airport.

Ryanair operates 166 aircraft on 729 routes across Europe and North Africa from its 31 bases. The airline has been characterized by rapid expansion, a result of the deregulation of the air industry in Europe in 1992 and the success of its low cost business model. Ryanair is the third largest airline in Europe in terms of passenger numbers and the worlds largest in terms of international passenger numbers.(Ryanair, wikipedia,2008)Ryanair was found in 1985. The company was very small, only flying between Waterford and London. Now, it has become one of largest carriers in EU (Wikipedia, the list of largest airlines in EU, 2007).

Actually, from the experience of Ryanair, we can infer that Ryanair create a low price strategy. And the truth is this kind of strategy has welcomed by consumers. In the previous year, the need for the booking tickets has grown up. But at that time, the company hasn't got much of profits even in losing money situation. It is obvious that low price need the low cost of supporting. But that situation was very short with the EU policy open.

In the fist two quarters in 2008, the crude oil price has gone up to the top in history. Ryanair have to save money by pressuring pilots to fly with less fuel. It is certain that the crude oil prices are directly affected ...