Essay on the Strategies of Ryanair
Ryanair Holdings is Europe’s leading low-fare scheduled passenger airline, carrying roughly 34 million passengers per year, across 19 countries (Ryanair, 2006). The company operates short-haul, point-to-point routes between Ireland, the UK and Continental Europe, and the company’s leading market position provides the company with the ability to leverage its market position to further expand its operating network: a key part of its current operating strategy. However, the predicted decline in the domestic European air travel market (Global Market Information Database, 2005) is likely to decrease the demand for the company’s services and thus harm its resultant revenues, and so the other key aspect of the organisation’s strategy is to reduce its exposure to these external threats. (Johnson et al, 2005). Hence this work aims to examine the interplay between these two strategies, critically analysing both their current, and potential future, success.
Leveraging market position to drive revenue
Ryanair has the leading market share on most of scheduled routes between Ireland and provincial cities in the UK, carrying approximately 43% of all scheduled passenger traffic between Dublin and London. Additionally, the company has more than 45% market share on scheduled routes from Dublin, which include London, Manchester, Glasgow and Edinburgh, and London, which include Venice, Rome, Milan, Hamburg, Valencia and Gothenburg, as of January 2005. (Datamonitor, 2005) Ryanair has also been voted as the airline with the best punctuality highest frequency which, combined with the company’s leading market position, provides the company with the ability to leverage its market position to further expand its operating network.
Ryanair has also been reporting strong revenue growth since fiscal 1999, and the company reported revenues of 1336.6 million Euros during the fiscal year ended March 2005, an increase of 24.4% over 2004. (Ryanair, 2006) The increase was primarily attributable to an increase in passenger volumes, which increased…
Would you like to read the rest of
"Essay on the Strategies of Ryanair"?
Simply use the form below to login or register now - it is completely FREE.
You well get access to hundreds more Business essays, just like this one!
Loading...
Login or Register:
Login or register and get access to hundreds of essays FOR FREE.
Either click here to register, or use the form below to login...
Register
Retrieve password
Tags: airline, competition, Ireland, passengers, RyanAir, UK
