Ryanair

Question 1

Analyze the European airline industry, with implications for the budget sector and especially Ryanair

The European airline industry comprise of well established national competitors such as British Airways, KLM and Luthansa which controls the market share at the higher end of the market. The abovementioned companies use differentiation strategies to compete and win market share. It is very difficult for new entrants to the European market such as Ryanair to compete against well established competitors on that basis. New entrants therefore must adopt different strategies to be competitive such as low-price strategies to gain market share in a highly competitive European market.

Ryanair competes in the low-fare end of the European airline market. Ryanair entered the European market by targeting the low-cost/low-added-value sector of the market. This strategy proved its success with R recording highest return on capital employed of all shares on the Irish Stock Excha...