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Porters Five Forces Analysis of RyanAir

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Essay / Research Paper Abstract

This 8 page paper examines the Irish low-cost air carrier Ryanair, utilizing the framework of a Porters Five Forces Analysis. The competitive environment, such as new entrants, power of buyers and suppliers and influence of substitute all discussed individually. The bibliography cites 8 sources.

Page Count:

8 pages (~225 words per page)

File: TS14_TEryanP5.rtf

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Unformatted sample text from the term paper:

that seems to be particularly badly hit is that of the airline industry, the industry has seen many airlines cutting their capacity, undertaking cost-reduction excises and in some cases going into receivership. One company which is being seen as a success story is that of Ryanair, in order to assess the position of Ryanair the background of the company and use Porters Five Forces framework as an analysis basis. Ryanair can be seen as a success story. They have grown from a family business, founded in 1985, that saw an opportunity to compete in a situation that was in effect a monopoly, to the company that was floated in 1997 and is now quoted on the stock market, and has grown to the position where it has both diversified as well as taken the market leader position for flights between the UK and Ireland (RyanAir, 2010). The company has archived this by careful strategic management, looking at both emergent strategy as well as carefully planned strategy. At all stages there has been a recognised need to maximise resources, meaning both the air fleet as well as the human capital, as well as increase market presence with the aim of being a market leader in Europe as a low cost air carrier. Porters Five Forces Model looks at five different elements that will impact an industry, these are the level of existing competition for the competitive environment, the threat of new competition from new entrants, the power of buyers, the power suppliers and substitute. Although they act in independence manner each will be considered separately in this analysis. The rivalry between airlines ...

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