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Case
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Reference no. IMD-7-1872
Authors: Sean A Meehan
Published by: Institute for Management Development (IMD)
Originally published in: 2017
Version: 23.10.2017
Revision date: 31-Oct-2017
Length: 12 pages
Data source: Field research

Abstract

This is part of a case series. By 2013, after over near 30 years, Ryanair has become the largest airline in Europe in terms of passengers flown internationally. It outperformed its low cost rivals on most operational dimensions. It was unambiguously positioned as the lowest cost of the low cost airlines. Its success, however, came at a price. Ryanair was far from loved. Its operational model, which enabled such low cost flying, had as a side effect service that was seen as far below industry norms. In 2013 its outspoken CEO, Michael O'Leary, came under increasing pressure to tone down the macho image he had cultivated and enhance service levels. To do this he would need to adapt the successful operational model. The A case asks whether such an adaptation make sense. The B case documents the evolution and implementation of Ryanair's response, a change program called 'ALWAYS GETTING BETTER' (AGB). AGB encompasses a digitalization program that chief marketing officer Kenny Jacobs believes can enable Ryanair to become the 'Amazon of Travel in Europe.' The B case asks whether this is a realistic ambition.
Industry:
Size:
Revenues: EUR4.9 billion (2013 - the A case), EUR6.5 billion (2016 - the B case)

About

Abstract

This is part of a case series. By 2013, after over near 30 years, Ryanair has become the largest airline in Europe in terms of passengers flown internationally. It outperformed its low cost rivals on most operational dimensions. It was unambiguously positioned as the lowest cost of the low cost airlines. Its success, however, came at a price. Ryanair was far from loved. Its operational model, which enabled such low cost flying, had as a side effect service that was seen as far below industry norms. In 2013 its outspoken CEO, Michael O'Leary, came under increasing pressure to tone down the macho image he had cultivated and enhance service levels. To do this he would need to adapt the successful operational model. The A case asks whether such an adaptation make sense. The B case documents the evolution and implementation of Ryanair's response, a change program called 'ALWAYS GETTING BETTER' (AGB). AGB encompasses a digitalization program that chief marketing officer Kenny Jacobs believes can enable Ryanair to become the 'Amazon of Travel in Europe.' The B case asks whether this is a realistic ambition.

Settings

Industry:
Size:
Revenues: EUR4.9 billion (2013 - the A case), EUR6.5 billion (2016 - the B case)

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