Strategic Analysis for Ryanair to Enter China

Submitted in part fulfilment of the Master September 2010

STRATEGIC BUSINESS ANALYSIS (ULMS 719)
University of Liverpool Management School
17 September 2010

Abstract

Ryanair, the leader of low-fare carriers in Europe, will expand its business throughout the world. This report discusses the strategies which Ryanair entre the Chinese market. Through PESTEL analysis and SWOT analysis to have sophisticated understandings of the Chinese market situation and the civil aviation environment, then after a series of considerations, eventually, Ryanair makes the decision to cooperate with China Southern Airlines in the form of a joint venture. Based on this, Ryanair has set up
The trend began in America, with Southwest Airlines as the chief representative. Since 1990, numerous low-fare airlines have sprung up on a global scale. Among these, Ryanair’s achievements stand out.
As the most profitable airline company in the world, Ryanair is renowned for its low-cost and low fares to travel destinations throughout most European countries. However, current airline routes and markets cannot meet Ryanair’s long-term development. To achieve its expanding ambitions across a global range, Ryanair decided to start with the Chinese market. Aviation in China is advancing at a staggering rate. Because of improvements in the living standard, more and more customers are willing to spend money on high-fare air tickets to save time and obtain excellent service, whereas the majority of middle-class individuals would rather travel by other vehicles than by plane due to its high price. Without doubt, the low-cost carrier is the only way to satisfy the growing requirements of the market in the next several years. Ryanair sees China’s high-potential market and increasing demands. It must, therefore, address these paramount issues: how to carry out appropriate strategies and combine Ryanair’s own advantages with the framework of international regulations and the Chinese government’s policies. If Ryanair enters the Chinese market successfully, it will have a special meaning and impact on Ryanair’s sustainable development and will bring about a great