Ryanair Cost Leadership Position and Bussiness Strategy

Ryanair
was established in 1985 with a share capital of just

£1, and a staff of 25 by Tony Ryan;
the Headquarter is in Dublin, Ireland;

since 1993 Michael O’Leary is the Managing

Director of Ryanair;
in 1986 Ryanair got the authority for the route

Dublin-London;
in 1991 Ryanair moved main base from London

Luton Airport to London Stansted Airport;
in 2003 Ryanair was the most used search term at

Google;
in 2006 the world's first airline to carry more than 4

million passengers in one month.

Ryanair’s market position
competitive advantage based on a privileged

market position and strategic renewal;
in Europe have to deal with high labour and other

location-specific costs;
low-cost strategy
Competitive advantage & Global strategy
Cost leadership as competitive advantage (cheap

flights, standardized tickets);
By standardization Ryanair can reach economies

of scale advantages in procurement and its service
production.
Competitive drivers
Ryanair’s fixed costs
• costs of airplanes (buy, rent or make deals about transporting
of customers with other companies),
• fuel,
• insurance,
• airport costs,
• security,
• maintenance,
• staff on the ground and in the air,
• and financial costs.


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