STRATEGIC PLANNING

Strategic Planning

Strategic Planning

Strategic Planning of Ryan Air

To evaluate any organisations strategic position certain factors have to be assessed. These include those below and also the environmental analysis which follows later in the report. Ryanair is an Irish airline competing in the fairly recent development of the European budget airline industry. They are one of the key players within the market? and perhaps the most profitable. This report undertakes a detailed study of Ryanair. It looks at Ryanair's current strategy and the management of that strategy. It identifies how the business' operations and functions impacts on the carrier's customer relations and leaderships with regard to their overall strategy. It also gives a brief evaluation of Ryanair's financial structure as well as an environmental analysis of the European airline industry and how this affects Ryanair (Edvardsson? 2002? 153-86). The report is mainly a case study analysis based on Eleanor O'Higgins' review of Ryanair conducted in 2004. However? other secondary research has been analysed and used to support the arguments put forward in this document.

Ryanair lay claim to their market segment by stating they were 'Europe's first no frills airline'? www.ryanair.com. Ryanair have made strategic decisions based on increasing their competitive edge? the main one becoming involved in attracting customers at both ends of their routes. Haberberg and Rieple (2001)? support this by showing that Ryanair's key source of revenue from as far back as a decade ago has been in enticing passengers from France? Italy and Scandinavia. This has had the advantage of increasing their market share as well as the added bonus of creating a well recognised brand name across Europe.

Sky Bus vs. Ryan Air

Skybus Airlines Inc. was a privately-held airline based in Columbus? Ohio? United States. It operated as an ultra-low-cost carrier modeled after the European airline Ryanair? and aimed to be the least expensive airline in the United States. The business model was heavily reliant on flying routes where other airlines did not have direct flights? as Ryanair did in Europe? thus keeping competition to a minimum? and on flying into secondary airports? rather than heavily-trafficked ones. The airline also sold advertising space on the interior and exterior of its aircraft? as well as selling merchandise on board. Skybus applied for operating approval on January 1? 2005? received approval to operate on March 15? 2006? and FAA certification on May 10? 2007. It had been granted a waiver to begin ticket sales on April 24? 2007; Skybus' first passenger flights out of Columbus began on May 22? 2007. Less than a year later? Skybus announced on April 4? 2008? that it would cease operations as of April 5? citing the lagging economy and rising fuel costs as causes. Not cited: operational issues causing the airline to operate late flights nearly 50% of its short history? low employee morale and rapid expansion not envisioned in the original business plan.

Skybus business model

Attempting to emulate Ryanair's business model and Southwest's people-friendly attitude (often considered at odds in comparisons of the two ...