Business program

“Ryanair. From Europe to United States”


1. The concern profile
1. 1. Description of our concern
The company is already No. 1 low cost bearer in the Europe so it is good to broaden the Ryanair’s skyline universe broad. Our services will be inexpensive transatlantic flights to United States of America from London and Dublin airdromes to New York airdrome with Ryanair air hoses.

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1. 2 Targeted market and clients
In the low cost bearer market our clients will be largely immature and middle-aged people who want to travel to America really cheap and see as a end non the journey and its comfort. but the finish.

1. 3. Growth trends in this concern
The low cost bearer market is turning. There are more no-thrills long-haul flights operated all over the universe. Other low cost bearers already started to offer transatlantic flights for illustration “Aer Lingus” . Zoom air hoses for approximately 100 euro per journey. Australia’s “Jetstar” has been runing flights from Australia and New Zealand to Honolulu. Japan. Vietnam. Thailand and Malaysia. With the release of the new planes they are anticipating to spread out their flights to continental Europe and United States. “AirAsia X” started its first long-haul flights to London with a one manner ticket that costs about 180 euro.

1. 4. Pricing power
Bing the most profitable air hose in Europe. Ryanair will be able to establish the new service to the market. by purchasing long-haul aircrafts from fighting rivals. That will province the beginning of Ryanair’s growing universe broad. The economic system category will be really inexpensive. compared with other challengers who offer transatlantic flights. though the concern category will be really costly. because there will ever be people who are ready to pay excess for a epicurean journey. With these money-making concern clients and bargain-priced economic system category Ryanair will be able to broaden its pricing power. With its Price Elasticity of Demand and a great fiscal public presentation Rynair will be able to increase the net incomes more than of all time.

2. The company overview
2. 1. Our mission for Ryanair
Our mission for Ryanair is to come up with a new concern thought that would do Ryanair non merely No. 1 low cost bearer in the Europe but besides will assist to spread out world-wide. to other continents and go No. 1 inexpensive air hoses in all over the universe by staying No. 1 for Customer Service with unbeatable monetary values and promptness.

2. 2. Company ownership
Ryanair Holdings plc is an Irish low cost bearer that is owned by stockholders. KA dar? ? ? ?

2. 3. Company history
Ryanair is a company that was founded in the twelvemonth 1985. Ryanair started with 5 1000 clients in the first twelvemonth. while now it embrace even more than 72 1000000s client per twelvemonth. Ryanair operates more than 1. 400 flights per twenty-four hours from 44 bases and more than 1100 low menu paths across 27 states. linking 160 finishs. In the twelvemonth 2010 Ryanair‘s traffic grew by 10 % .

2. 4. Company location and installations
Ryanair has 42 bases and offers 158 finishs all around the Europe. Ryanair has understandings with the DAA. the Irish authorities authorization charged with operating Dublin Airport. to rent ticket counters and other infinite at the rider and lading terminus installations at Dublin Airport. The airdrome office installations used by Ryanair at London ( Stansted ) are leased from the airdrome authorization ; similar installations at each of the other airdromes Ryanair serves are provided by Servisair plc or other service suppliers ( copinta ish interneto )

3. Products and services
3. 1. Merchandise and service description
Ryanair is the low cost bearer that offers really inexpensive flights all over the Europe. It is the largest low cost bearer in the Europe and is No. 1 for Customer Service with unbeatable monetary values and promptness. Ryanair offers more than 150 short-haul finishs in Europe for really low monetary value. 3. 2. Future merchandises and services

As Ryanair is a company that’s willing to stay at the top and to be in the Centre of attending it is important to come up with many advanced thoughts in order to implement this aspiration. As the new service we are offering to run inexpensive long-haul transcontinental flights from London and Dublin to New York. it will spread out Ryanair’s skyline and raise the range of the company. Furthermore. it can be the basis for Ryanair to spread out all around the universe ( get downing from New York and subsequently traveling wider into United States. Asia and Africa ) .

3. 2. Competitive comparing
Following the company‘s vision – holding the largest sum of paths and the lowest menus of any European Airline without compromising their concern theoretical account ; surpassing every other bearer on all foreparts including quality of service and besides draw a bead oning to continue a high degree of growing – is the lone manner to distinguish good among the other rivals. As the low cost bearer industry is extremely competitory. if the company wishes to be No. 1 in the market it has to offer broad scope of services and really low cost. Competing with other companies there is a heavy force per unit area on monetary values. borders. and therefore on profitableness.

3. 3. Technology
Ryanair has 247 aircrafts – Boeing 737-800. As swift commonalty is one of the parts of Ryanair‘s cost decrease scheme. it does non hold any other sort of aircrafts. therefore salvaging money for care. employees preparations and etc. Despite that our thought is to purchase new aeroplanes in order to be able to offer the new service – Transatlantic flights to US.

This thought will narrowly impact the scheme of the company and will bespeak for outgo. though in clip it will pay off and return with immense output. For cut downing the disbursals we offer to buy the aeroplanes from fighting rivals.

4. Industry analysis
4. 1. Market cleavage
We are utilizing psychographic cleavage for our concern thought. The consumers are divided harmonizing to their life style. attitude. believes and character characteristics. for illustration some of them would pay a batch of money for holding a comfy flight and all sorts of excess installations during the trip. while others for illustration pupils would go in any conditions as long they can go every bit inexpensive as possible.

4. 2. SWOT analysis of Ryanair
|Strengths: |Weaknesses: | |Very low monetary value for tickets |Extra cost for excess services ( magazines. nutrient. drinks. luggage. | |A big choice of different waies |insurance and etc. ) | |Punctuality |Bad quality of service | |Airplanes are to the full well-stocked |No conjunctive flights | |New. economic system. more ecological aeroplanes ( it decrease running costs ) |There are no offices or at least telephone Centres in each state | |Was accepted as the best low-priced bearer in all around Europe | ( therefore Ryanair avoid payments for employees and assorted revenue enhancements ) | | |Availability to purchase a ticket merely with a recognition card ( for tonss of | | |people it is really uncomfortable ) | | |Only in Europe | | |Strict Visa ordinances to US and Russia | |Opportunities: |Threats: | |To set up conjunctive flights |Increase of fuel monetary values | |Transatlantic flights |Competitors consolidations to alliance | |More flights waies non merely in Europe or to US but all about |Big punishments for controversial undertakings that Ryanair tend to keep | |the universe ( Africa. Asia ) |The terminal of recession when people will get down to go for high costs| |To be the figure one Low cost bearer company in all over the universe | |

4. 3. PESTEL analysis

Political factors:
• Vizas to Russia. America etc.
• Terrorism ( some people are afraid of terrorist act act and prefer to avoid traveling and remain place ) Economic factors:
• High cost of fuel
• Currency fluctuation
• Financial crisis
Social factors:
• Immigration/emigration. Young people are going non merely within Europe but besides to other continents more and more ( ERASMUS exchange programme. more chances to work or analyze abroad. sing friends. relations and etc. ) • Demographic tendencies. Talking about age. younger coevalss are much more likely to utilize bearers for their travels and are more basking the benefits to make their finish for a inexpensive monetary value without any services included in a ticket monetary value. Despite the fact that new aeroplanes will be larger. still for elder people it will non be so comfy. Technological factors:

• Internet has allowed the administration to avoid batch of costs and it is one of the most of import characteristics of Ryanair because people are allowed to
purchase tickets merely online • New finds and research

Environmental factors:
• Emission
• Noise pollution
Legal factors:
• Emission restraints set by the European Commission
• Legislation on working clip ordinance

4. 4. Main rivals
Ryanair’s chief low-priced rivals are easyJet. Monarch Airlines. bmibaby. Centralwings. Air Berlin. Germanwings. Transavia. Jet2. SkyEurope. Vueling. Wizz Air. Flybe. Thomsonfly and TUIfly. We have highlighted the most of import rivals – “easyJet” and “Aer Lingus” . Both “easyJet” and “Ryanair” offer broad scope of flights and really low costs while “Air Lingus” offers good quality ( is non low cost bearer ) but have broaden the scope of finishs to US. Africa what is of import for our new “Ryanair’s” scheme.

EasyJet is the British air hoses and were established in 1995 by the American air hose “Southwest Airlines” theoretical account. The same theoretical account was used for set uping Ryanair. The chief point of this theoretical account is to the full well-stocked aeroplanes ; fast during flights service ( when aeroplane lands. air hostesss settle it for another flight rapidly ) and excess costs for excess services. Although the scheme of “easyJet” and “Ryanair” is really similar. there is a difference between taking airdromes. “EasyJet“ is more likely to take bigger metropoliss for set downing where the service revenue enhancement is higher but people are tend to take better airdromes for comfort and that they can make the metropolis faster. “Ryanair” is utilizing other scheme and flies merely to the secondary importance airdromes that manner salvaging money on the immense revenue enhancements of the airdrome. Due to these differences. “easyJet” describes “Ryanair” as a company which flies to nowhere while harmonizing to “Ryanair” “easyJet” is merely the high cost air hoses. The figure of “easyJet” riders has reached 45. 2 1000000s in 2009. In add-on to this. “easyJet” became the 2nd low cost air hose after “Ryanair” . Aer Lingus. the Irish air hoses. was established in 1936.

The Centre of the company is in Dublin. During the twelvemonth 2007 the figure of riders was around 9. 3 1000000s and the turnover reached 1. 3 milliards euros. It is Interesting that 29. 4 % of “Aer Lingus” stocks belongs to “Ryanair” . The chief factor that keeps “Aer Lingus” the strong rival is that they already offer transatlantic flights to North United States and to Africa. At the minute “Aer Lingus” uses 30 Airbus A320-214 aeroplanes for flights in Europe and to Africa. 6 Airbus A321-211 merely in Europe. 3 Airbus A330-220 and 5 Airbus A330-300 to United States. It uses the chief bigger airdromes ( non the 2nd importance like “Ryanair” ) . The metropoliss in US that “Aer Lingus” flights to are Boston. Chicago. New York and Orlando.

5. Scheme and execution

5. 1. Selling scheme
Ryanair has a really efficient low cost strategic capableness keeping their place as Europe’s taking low-fares air hose. runing frequent point to indicate flights on short-haul flights. chiefly out of regional and secondary airdromes so this thought will alter some points of their scheme. Although. we will be utilizing the same scheme that Ryanair has been utilizing: the Porter’s generic scheme where the chief focal point is on the cost leading. Just the fleet commonalty will hold to alter due to the fact that Ryanair will buy new aircrafts to be able to implement the program of winging to US. Besides they will offer long-haul flight. but still it will be merely from London and Dublin to New York. that is one of the shortest possible ways between two continents.

5. 2. Pricing scheme
It is indispensable that our concern thought would run into the demands and outlooks of the consumer. Furthermore it can non challenge with the company’s position ( vision. mission and ends ) and it has to convey benefit to the company. For that ground it is really of import to put the effectual monetary value that would bring forth net income to the company and besides keep Ryanair’s place of being No. 1 cheapest air hoses.

5. 3. Promotion scheme
We will chiefly depend on Ryanair’s web site in order to make new and old clients and to advance our new concern thought that will alter one belief of the clients “that you can go cheap merely to the finishs. no 1 is interested in” . That will inquire some alterations in the publicity subdivision. First. Ryanair will hold to concentrate more attending on the advertisement. because in the get downing the new merchandise is ever ill-defined and confounding for the costumiers. As Ryanair is the company that does non enforce many finance to the advertisement. their signifier of advertisement is really good considered and it creates an excess public involvement in the company that costs nil. Ryanair besides has a group in global popular societal web site “Facebook” with 71. 585 fans where they can portion information and intelligence or discuss about the current or future paths. This is a good illustration how to raise popularity of the company and create consciousness of the new merchandises or services. non by puting lucks to the advertisement budget.

5. 4. Human resource direction scheme
Now Ryanair has over 8000 employees. When the administration is making its image it is necessary non to bury the forces. It would be really wise for Ryanair to pay more attending to its staff. Not merely the public image of the company would acquire better. but besides the employees would react about the organisation more positively and would be impelled to take attention of the client more attentive.

For our concern thought Ryanair will necessitate more people in it’s alongside. The demands of our business’ human resources will be best met by runing with contract workers who will work full clip. Our concern thought offers Ryanair to run 3 flights to New York per hebdomad. in the beginning. After some clip. if the demand will be higher the figure of flights could be expanded.

5. 5. Strategic Business Unit ( SBU ) analysis A strategic concern unit is a portion of an organisation for which there is a distinguishable external market for goods or services that is different from other concern units. In this instance we have chosen United States as our new SBU.


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