1. Covering letter 2
2. Executive summary 3
3. Challenge statement 3
4. Analysis 4
A. Marketing system 4
B. Organization and HRM 5
C. Core and distinctive competences 7
D. Customer (market) analysis 8
E. Competitive analysis 9
F. Environmental analysis 11
G. Summary of the main strengths and weaknesses from Ryan Air and ofopportunities and threats present on the low-cost airlines’ market 12
5. Alternatives 13
6. Recommendation 15
A. Decision criteria 15
B. Decision grid 16
C. Recommended solution 16
7. Implementation 16
A. How will it be accomplished? 16
B. When will it be accomplished? 18
C. Who will do what? 19
D. How much will it cost? 20
E. How will it be paid for? 20F. What risks are involved and how to minimize this risks? 21
8. Contingency plan 21
1. Covering letter
Julie, Emilie, Natalia and Quentin Consulting Team
MC International Ltd. - Holly House
Ryan Air HoldingCorporate Headquarters
Liverpool, February 8th 2008
As concluded in our contract of June 25th 2007, our company has examined in details Ryan Air Holdings PLC’s documents and we have noticed some problems thatcould have a critical impact on your company in a long term view.
In the following documents, you will find a complete analysis of main problems of Ryan Air, and you will also find three alternatives to cope with the major issue. According to our computations, there is one of the alternatives, which is the best to enhance Ryan Air’s competitive advantage: stay the leader on the airlines’low-cost market. We also present you how to implement our suggested strategy (financially and technically speaking).
Furthermore, the implementation of the second best alternative has also been design in case the first solution is rejected.
Do not hesitate to contact us if you want more explanations.
Julie,Emilie, Natalia and Quentin Consulting Team
2. Executive summary
Today, Ryan Air is the leader in Europe on the low-cost airlines market mainly because of a fundamental distinctive competence: the company proposes the lowest prices for their tickets. This criterion is the most important for customers. That is why Ryan Air’s market share is the highest compared to its competitors.Nevertheless, the company should take care about this current advantage, because competitors, as Easy Jet principally are challenging this leader. Also, having now the highest number of routes in Europe at the lowest selling prices is not sufficient anymore.
In fact, internal and external issues need to be faced by Ryan Air. First of all, a big deal on the airline market is the constant increase of fuelprice. This growing charge must not have a too big impact on selling price not to loose consumers. Secondly, preserving hearth has become a common interest and airlines companies have to face rude ecological norms and have to pay more and more environmental taxes. Moreover, customers express today the need to travel farther, as Europe is now an entity. But the low price stays as the most importantcriteria for low cost travellers. That is why, the big challenge that Ryan Air is confronted to is:
How to stay a leader in keeping the lowest prices on the low-cost airlines’ market?
The leader has now to act in the view of not being surpassed by coming events. Three main options can meet this challenge: opening a long haul route to United States, merge with one of the competitor or...