1. Ryanair-The Low fares Airline
Team members:
Daniel (YunLong.Feng)
Oscar (XiYu.Liu)

2. Ryanair
Company Overview
Organizing for Strategy
Conclusion

3. Company Overview
1985, first route with daily flights on a 15-seater Bandeirante aircraft.
In 1986 launch fare of £99 return, 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 ’s.

4. Porter’s Five Forces - Supplier
Rivalry
Threat of Entry
Buyers
Substitutes
Suppliers
Boeing is main suppliers. ( Only 2 possible suppliers of planes – Boeing and Airbus)
High switching cost. (Price of aviation directly related to the price of oil)
Regional Airports depends on one airline.(Bigger airports have competitor of Ryan Air)

5. Porter’s Five Forces – Threat of Entry
Rivalry
Threat of Entry
Buyers
Substitutes
Suppliers
High capital Investment.
Restricted slot availability makes it more difficult to find suitable airports.
Immediate price war if encroaching on existing LCC route.
Need for low cost base.
Flight Authorization.

6. Porter’s Five Forces – Buyers
Rivalry
Threat of Entry
Buyers
Substitutes
Suppliers
Customers are price sensitive.
High switching tendency.
Customers know about the cost of supplying the service.
No loyalty.

7. Porter’s Five Forces – Substitutes
Rivalry
Threat of Entry
buyers
Substitutes
Suppliers
No brand loyalty of customers.
No close customer relationship.
No switching costs for the customer.
Other modes of transport: Euro lines, Ferries etc.

8. Porter's Five Forces – Rivalry
Threat of Entry
buyers
Substitutes
Suppliers
The LCC market is highly competitive
Most cost advantages can be
immediately
Aviod direct head to head
competition
Price is the main differentiating factor
2018/9/15

9. Conclusion I. Aircraft equipment cost Offering low fares
Frequent point-to-point flights
choice of routes
Low operating cost:
I. Aircraft equipment cost
II. Personnel expenses
III. Customer service cost
IV. Airport access fee
Maximize the use of internet
Commitement to safety and quality maintainence
Focused criteria for growth
2018/9/15

10. Thank you for your attention
2018/9/15