1. Ryanair – The Low Fares Airline Strategic Management Team members: Ivan Martinov Sabbir S. M.

2. Agenda Company Overview 1 Strategic Analysis 2 3 Strategy Formulation 4 Organizing for Strategy 5 Conclusion

3. Company Overview 1985, first route with daily flights on a 15-seater Bandeirante aircraft, In 1986 launch fare of £99 return, less than half the price of the BA/AerLingus lowest return fare of £209. First European fare war In 1990, losses of £20m. Adopt Southwest Airlines low fares model. In 1997, Ryanair launches its first four European routes By 2009, traffic grew to 14% compare to 2008, resulting 66.5m passengers in response of reduced of just €35. Covering 44 bases, 27 countries, 160 airports with 254 Boeing 737-800’s

4. Agenda Company Overview 1 Strategic Analysis 2 3 Strategy Formulation 4 Organizing for Stratgy 5 Conclusion

6. Only 2 possible suppliers of planes – Boeing and Airbus

7. High switching cost

9. Bigger airports have competitors of Ryan AirRivalry Substitutes

11. Restricted slot availability makes it more difficult to find suitable airports

12. Immediate price war if encroaching on existing LCC route

13. Need for low cost base

14. Flight AuthorizationThreat of Entry Buyers Suppliers Rivalry Substitutes

16. High Switching tendency

17. Customers know about the cost of supplying the service

18. No loyaltyThreat of Entry Buyers Suppliers Rivalry Substitutes

20. No ‘close customer relationship’

21. No switching costs for the customer

22. Other modes of transport: Eurolines, ferries etc.Threat of Entry Buyers Suppliers Rivalry Substitutes

24. Most cost advantages can be copied immediately

26. Price is the main differentiating factorRivalry Substitutes

27. SWOT Matrix

29. Corporate Lawsuits

30. Strong Political Environment

31. EU Expansion

32. Trade Union Pressure

34. Weak US dollar

35. Global crisis

36. High rates of unemployment

37. Global warming and CO2 emissions

38. Noise pollutionNew aircrafts; with much more efficient engines -> reduced CO2 emissions and fuel consumption Internet High speed trains

39. Conclusion of PESTLE Analysis Conclusion: Positive sociodemographic factors supported by strong technological innovations Bad legal and environmental aspects Mixed political and economic environment Result of analysis: The Macroenvironement is contradictory

41. Shareholders and Investors

42. Creditors

43. Government

44. Customers

45. Employees

46. Competitors

48. Agenda Company Overview 1 Strategic Analysis 2 3 Strategy Formulation 4 Organizing for Strategy 5 Conclusion

49. Vision Become Europe’s Leading Passenger Carrier Mission No. 1 for offering cheapest air fare No. 1 for punctuality No. 1 for service commitment Vision and Mission

50. Offer the lowest fares at all time on all routes No fuel surcharge guaranteed Honor the agreed fare after payment Minimize the numbers of passengers facing delays Allow reservation changes Respond quickly to passenger complaints and provide prompt refunds Take measures to speed up check-in Minimize the number of passengers who are involuntarily denied boarding Minimize the number of passengers who are involuntarily denied boarding Ryanair will provide the following information to passengers at the time of booking Ryan Air Passenger Charter

52. Frequent flights

53. Increased number of routes offered

54. Eastern Europe expansion: new EU countries

55. Turkey?

57. Popular destinations: London, Paris, Milan Madrid, Rome, Barcelona

58. Strong Globalization forces towards standardization Weak Weak Strong Localization forces towards customization Global integration/local responsiveness grid Global Strategy Transnational Strategy Multidomestic Strategy International Strategy

59. Agenda Company Overview 1 Strategic Analysis 2 3 Strategy Formulation 4 Organizing for Strategy 5 Conclusion

60. Strategic Goals Offering Low Fares Frequent point-to-point flights on short-haul routes Choice of routes Low operating cost: Aircraft equipment cost Personnel expenses Customer service cost Airport access fee Maximize the use of internet Commitement to safety and quality maintainence Focused criteria for growth

61. Overall cost leadership by: Low Aircraft maintainence cost Lowering Personnel expenses Lowering Customer service cost loweringAirport access fee Business Level strategy

62. Positioning

63. Balanced Scorecard I

64. Balanced Scorecard II

65. Thank you for your attention!