Ryanair Case Analysis
Vella, O'Leary, and Kelly (PPS Publications, 2008)
Ryanair certainly has had an interesting history and represents an extraordinarily successful company. The company has pioneered the low cost leader strategy and crafted a niche for themselves in the European market in record time. Furthermore the company developed this niche to become the industry leader. Despite the company's success however, the industry is evolving and new challenges are constantly emerging. It is recommended that Ryanair maintain its position as well as possible during the economic downturn while simultaneously looking to increase its market share and expand through acquisition. In the long-term it is recommended that the company focus on improving their customer service levels as well as their employee relations position.
Company Overview
Ryanair was founded in 1985 by the Ryan family with a relatively low operating budget and just 25 employees. The company has grown from its humble roots consisting of a small airline flying solely from Waterford to London into one of Europe's most respected airlines. Ryanair is the largest low cost leader competitor in Europe's as well as the largest airlines in regards to total profits, number of flights, and number of passengers flown. At present, Ryanair has 32 bases and over eight hundred low fare routes across twenty six countries, connecting over a hundred and fifty destinations, and with over a thousand daily departures (Ryanair, 2012).
Michael O'Leary (pictured in the introductory photo), CEO of Ryanair, is credited for spearheading the first low cost leader airline in Europe; which has paid of royally. Michael O'Leary's career has earned him reputation as having an aggressive management style, operating with a flat organizational hierarchy, and being determined to lower costs in every piece of the operating model. As a result of the CEO's flamboyant style as well as the company's operating model, Ryanair has become one of Europe's most controversial companies. Although the organization is praised for its commitment to low fares, radical management, and its willingness to challenge the status quo, it has also been criticized for attacks on unions, hidden...
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