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Analysis of Ryanair's Strategies

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  1. History and evolution
    1. Ryanair, one of the first low-cost businesses
    2. Use of New Technologies of Information and Communication
    3. Market environment
  2. Performance
    1. Costs reduction
    2. A niche market
    3. Relatively High quality
  3. Possible strategies for the future
    1. Communication and image
    2. Target

For many years, air travel was a distant dream for the common man.Thanks to the emergence of low cost airline companies such as Ryanair, flying is no longer reserved for the elite class. Ryanair, the pioneer of low-cost airlines, is an Irish company that was created in 1985 by Michael O'Leary. Headquartered in Dublin, the carrier proposes flights in almost all European countries. It sells the cheapest plane tickets (averaging €41) and it has become Europe's most profitable airline company. In this document, we will study its history and its evolution in the changing market environment, judge its performance and finally, we will suggest possible strategies for the future.

[...] This cost-reduction policy also includes the choice of secondary airports which are less expensive. However, they are less convenient for the customer and even increases the overall price of their travel (taxi, hotel). Finally, to make its operations profitable, the company charges high prices for its secondary services such as food, drinks and car bookings . Indeed, this policy helps the company to realize a high margin. A niche market When it was created in 1985, Ryanair actually took advantage of a niche market. [...]

[...] A growing consciousness of ecological issues caused by pollution has encouraged governments to implement regulations to reduce fuel usage, emissions and noise. Ryanair integrated these measures by replacing its planes; the company replaced its fleet of Boeing 737-800 aircraft with the next generation Boeing 737-800 aircraft that have lower fuel burn, quieter engines and less emission, which reduce the negative impact on the environment. Ryanair also respects some eco-friendly rules such as avoiding late departures to reduce noise pollution at night, favoring direct routes and full planes to reduce per passenger emissions and using existing infrastructures (under-utilized airports). [...]

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