Ryanair is an Irish low-cost airline that holds a major share in the European airline industry. The airline provides good services to customers and holds a major share in the international market. This case study will analyze all the factors that can influence the development and progress of the company and will also recommend some strategies to improve the current state of the company. The main problems faced by Ryanair are the bad image of the company and most of them revolve around low costs, poor customer service and ecological damage to the environment. SWOT and TOWS analysis for Ryanair is also provided in this case study. Furthermore, strategic options, proposed strategic plan and SAF analysis along with conclusions and recommendations are also provided at the end of the study. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay IntroductionRyanair is a famous and first low-cost airline which introduced new low-cost packages in the airline industry. The airline was founded in 1985 by the Ryan family with the aim of providing low-cost scheduled passenger services between Ireland and the United Kingdom. The airline aimed to operate as an alternative to the state monopoly Aer Lingus. Over the years, the airline has gone through drastic changes since its inception in 1985. Ryanair's CEO, Michael O'Leary, has adopted the Southwest airlines business model which is low cost and strong leadership. Ryanair's strong leadership is renowned throughout the world. However, the airline finds inconsistencies in areas such as poor customer service and poor working conditions. In recent years, Ryanair has improved its services, improving its image and introducing the necessary changes to attract more passengers and customers. SWOT Analysis The Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis of Ryanair is provided below. Ryanair's strengths (internal factor) The Ryanair brand is its own strength. Ryanair has always provided facilities to the customer with low costs and high levels of punctuality. The unique service provided by Ryanair is a plus for this airline. It is the largest airline in Europe and carries more passengers than other airlines in this region. Ryanair's presence on European markets acts as a defensive system against competing airlines. The low cost of the ticket is due to its large size as they can exploit the economy of reach and scale. The online flight ticket booking system is also a great plus for this organization. The young staff and crew members are also one of its greatest strengths. Customers can purchase their tickets without paying additional cash to the agents. Expenses are controlled by Ryanair's bargaining power due to its large presence. The large size of the airline, i.e. 16,00 routes in 30 countries in Europe and North Africa, 69 bases for Ryanair aircraft and crew and approximately 186 airports, makes this airline a strong icon in the market. Weaknesses (internal factor) Despite the Given that Ryanair holds a good position in the international markets, there are many threats that can compromise the airline's capacity. Ryanair's earnings are highly seasonal and the increase in profits depends on the strong Northern Hemisphere climate. As summer approaches from July to September, profits increase while in winters i.e. October to March, profit decreases. The company faces a huge loss due to these seasonality issues. Furthermore, thepoor customer service and complicated service agreements, such as ambiguous baggage policy and other revenue-boosting unfair pricing practices, hurt its standing. Furthermore, the airline's growing market presence in the UK has caused Brexit-related risks for the organization and, for this reason, the owners have decided to focus on Europe to combat this weakness in the future. Opportunity (External Factor) In 2013, Ryanair focused on improving its customer service to improve the quality of customer interactions with the airline. The attractive new website and the ability to book with just a few clicks add to the airline's strengths. Furthermore, the new app, easing of baggage restrictions and new seats make it a good airline. To improve customer service, Ryanair has also launched its business class and it also has many features such as fast lane service, booking flexibility, single fare features and ability to reserve seat in premium rows and check bed. More primary airports will be added to Ryanair to improve its services. Ryanair also plans to add around a hundred Boeing 737 MAX200 aircraft to its airline fleet. The plane will have 197 seats and will be operational after 2019. There are 187 seats in the current plane. The plane's increased fuel efficiency will also increase profits by 18% and reduce noise pollution by 40%. Threats (External ) factor)Accidents are the main threat to any airline. Ryanair's track record shows that it has a strong safety record. There are fewer suggestions for improving safety, but Ryanair has a strong image and its plans are continually growing. However, loss of focus from any corner of management could damage its track record. The real threat lies in the incursion into Irish rival Aer Lingus. This would pose a major threat to the airline because the new airline's business model, fleet and network were not the optimal business option. Competition regulators and the Irish government have threatened this attempt. Other airlines are unable to compete with Ryanair on prices due to its unit cost level. However, there are other aspects, such as the quality of the airport and the level of customer satisfaction with these changes, which may pose a threat to Ryanair. Furthermore, with the ambitious growth plan, external factors such as fuel prices, currency movements and terrorist threats are always the risk factors for the airline. TOWS Analysis Ryanair's TOWS analysis provides recommendations to increase the its capacity in all aspects. Strategy SORyanair has to realize its next project of purchasing one hundred new aircraft and increase its 146 routes that the company has decided to launch in 2010. Further expansion can increase the role of the company in the market to reach the goal and can use it to further decrease their fair. Furthermore, Ryanair should use its young staff to improve its customer service and give a good image to customers. You can generate more revenue by increasing sales through the attractive website. ST Strategy Ryanair should continue to purchase the new aircraft. Rising fuel prices are always a risk for airlines. New planes are fuel efficient and can save a lot on fuel, thus increasing profits. If fuel prices rise, the airline will compete in a healthier and more profitable regime. The planes are also respectfulof the environment since they are less noisy and spread less pollution. The economic stability of the airline can help in this situation. When others raise prices, this airline's low costs can increase its profits by a good amount. WO Strategy To overcome the airline's bad image resulting from poor customer service and controversial advertising, Ryanair must engage in dialogue with customers and unions. Successful dialogues must be publicized through advertising messages. There must be a feedback area for customer complaint and the company must acknowledge complaints by reviewing them and responding effectively and diligently. WT Strategy The public image of the airline must be optimized. The poor services offered to customers by the airline must be improved and safety risks must be eliminated. To ease staff pressure, new qualified staff should be recruited. Strategic Options Porter's generic strategies are provided by Michael Porter who wrote a book on competitive strategies, widely used in strategic management. According to Porter, competitive strategy is the tool for allocating adequate competitive positions. Companies are built and destroyed based on their alternative strategies. Michael Porter's conceptual model was based on three main categories: differentiation, focus and cost leadership strategy. In the model Michael Porter compares successful and unsuccessful business organizations. If the company does not adapt to the strategies established by the Porter model, it is unable to compete in the competitive environment (Porter, 2014). Cost Leadership Cost leadership strategy represents the organization's activity by keeping costs low and performing the best at low cost in the industry. In this case, due to its low cost, Ryanair has attracted many customers traveling in Europe from point A to point B. With the recent recession and other factors, customers are choosing the cheaper option while providing better quality service. At the beginning, Ryanair was a normal airline with the same fairs and fares. However, the company has reduced costs keeping in mind the external recession. Therefore, the airline faces problems in transitioning from a high-cost airline to emerge as the best low-cost airline in Europe. Differentiation Differentiation strategy is also good for the company as it uses technology extensively. Some problem areas associated with this strategy are estimating the additional cost, which can be recovered from the customer through high prices. Successful differentiation strategy works if the company introduces a different product. Ryanair has already suffered losses and therefore the CEO adopts the policy of American Southwest airlines. However, Ryanair's strategy in this case remained unclear. The low cost policy has greatly helped in achieving differentiation and cost leadership and thus the airline has emerged as a successful game changer in the airline services industry. Ryanair's use of secondary airports helps keep its prices low. FocusFocus is also one of the three generic strategies but was considered the moderator for the other two strategies. The company focuses on areas of the markets with areas of less competition. Ryanair's aim is to take customers cheaply from one point to another. Therefore, Ryanair is the best choice for those who want to travel to secondary airports at low prices. Vacationing customers who simply wanted to get from point A to point B are the company's main focus.