Marketing Strategy Prof. Dr. Joachim Büschken

European Airline Industry: Ryanair in 2003

02.11.2009

Group 5: Desoutter, Adrien Hamburger, Sebastian Koths, Gerhard Patzki, Kirsten Strobl, Julia Santiago, Maria Cristina

The following paper presents an analysis of the sustainable competitive advantage of Ryanair and the question why other airlines are not able to imitate Ryanair’s success easily. Therefore, the text is separated into five parts. First of all Ryanair’s business model is revealed by analyzing its capabilities and core competences before the second part will shed light on Ryanair’s financial statement. Subsequently, this business model is compared to those of other low-cost carriers and the gaps to those of the flag carriers are highlighted. Finalizing the case analysis, possible opportunities and threats Ryanair might face within the future are presented. In order to get a better understanding of the different business models of Ryanair, its competing low cost carriers (LCC) and the traditional flag carriers, this text points out its differences by two main dimensions: the regional area each airline is operating in and the customer segments it is targeting on. Ryanair’s strategic intent is to maintain its leadership position in the low-cost airline sector. To keep this position in the highly competitive market, the interaction of Ryanair’s capabilities and resources, which lead to their core competences, can be seen as the leading edge of their strategic development. Ryanair applies a unique cost reduction strategy; whereby cost control is seen as the total priority. By cutting different operating costs (personal, maintenance and ground services), minimize turnaround time and maximize aircraft utilization, Ryanair is able to offer the lowest rates. Through all their operations, Ryanair tries to make use of simple processes. Staffing, transport without commodity as well as easy internet booking are just some examples of keeping the processes