HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeRyanair: Defying gravityback to Strategy

Case Study

Ryanair: Defying gravity

21 pages

December 2005

Reference: IMD-3-1633

Ryanair was the pioneer of low cost flying in Europe. As the result of a series of marketing innovations and stringent control of costs it enjoyed a decade of rapid and profitable growth. By 2004 it had become the most profitable airline in the world (in terms of percentage operating profit). However, it faced intense competition from a variety of traditional, charter and other low-cost carriers. In September 2004 its larger archrival, easyJet, announced that it was going to begin flying into Ryanair’s home market. Michael O’Leary and his management team had to decide how to respond to this provocative move.

Keywords

Innovation, Marketing Strategy, Competition, Pricing, Airline, General Management, Strategy

Settings

Europe
Ryanair
October 2004

Type

Published Sources

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Three key steps for CFOs in the AI era

Three essential moves for CFOs in the AI era: build an integrated intelligent finance system, redefine productivity, and govern autonomous workflows.

Finance Leadership Performance Measurement Strategy

By Salvatore Cantale, Konstantinos Trantopoulos and Michael R. Wade

in I by IMD

Video

How the company that ‘sells screws’ nailed the customer experience

Bossard CEO Daniel Bossard explains how a focus on customer value, trust, and strategic partnership created lasting competitive advantage.

Innovation Leadership Strategy

By Stefan Michel

in I by IMD

Article

GXO: Building a Culture of Stability in Uncertain Times

CHROs must help employees navigate external uncertainties, says GXO Logistics’ Corinna Refsgaard.

Culture Leadership Strategy Talent Management

By I by IMD

in I by IMD

Article

How to outcompete your client’s AI

The in-house lawyers at real estate investment firm Alturas Capital Partners used to rely on outside counsel for much of its lease work. Thanks to generative AI, it can now do that work internally, saving the firm hundreds of thousands of dollars ...

Artificial Intelligence Strategy

By José Parra Moyano, Karl Schmedders and Olivier Laplace

in MIT Sloan Management Review Blog

29 September 2026

Article

What drives national competitiveness? - Arturo Bris

There is no universal formula for national competitiveness. Switzerland, South Korea, and Canada show how different combinations of strengths can create advantage – and why those models must evolve as the world changes.

Board decision-making: Why strategic friction matters

Smooth board meetings and quick approvals are misleading indicators of effectiveness. Marianna Zangrillo and Thomas Keil reveal how the best-performing boards harness the power of carefully managed conflict.

Strategy Board Communication Performance Management

By Marianna Zangrillo and Thomas Keil

in I by IMD

24 September 2026

Article

How to avoid six leadership decision traps

Explore six common leadership decision traps and proven remedies to improve outcomes, from precise problem framing to securing lasting team buy-in.

Leadership Strategy

By Michael D. Watkins

in I by IMD Brain Circuits

23 September 2026

Article

How to turn volatility into competitive advantage

Protecting against disruption is no longer enough. In a post-stability economy, businesses need to reinvent continuously – and learn how to profit from volatility.

Strategy

By Nadya Zhexembayeva

in I by IMD

23 September 2026

Article

CHROs as Strategic Leaders - Tessa Boshoff - IbyIMD

Discover why today's CHROs must move beyond traditional HR to shape business strategy, drive growth, and influence executive decision-making.

Culture Human Resources Strategy Talent Management

By I by IMD

in I by IMD

Article

Corporate spin-off innovation strategy: OPPO and OnePlus

Explore how OPPO’s OnePlus experiment offers a four-step corporate spin-off innovation strategy to drive breakthroughs and bring new capabilities home.

Innovation Strategy

By Nongfei Pan

in I by IMD

Three key steps for CFOs in the AI era

By Salvatore Cantale Konstantinos Trantopoulos and Michael R. Wade
in I by IMD

Summary

Three essential moves for CFOs in the AI era: build an integrated intelligent finance system, redefine productivity, and govern autonomous workflows.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance Leadership

Performance Measurement

Strategy

Browse all topics

How the company that ‘sells screws’ nailed the customer experience

By Stefan Michel
in I by IMD

Summary

Bossard CEO Daniel Bossard explains how a focus on customer value, trust, and strategic partnership created lasting competitive advantage.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Innovation

Leadership

Strategy

Browse all topics

GXO: Building a Culture of Stability in Uncertain Times

By I by IMD
in I by IMD

Summary

CHROs must help employees navigate external uncertainties, says GXO Logistics’ Corinna Refsgaard.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Culture

Leadership

Strategy

Talent Management

Browse all topics

How to outcompete your client’s AI

By José Parra Moyano Karl Schmedders and Olivier Laplace
in MIT Sloan Management Review Blog 29 September 2026

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Strategy

Browse all topics

Board decision-making: Why strategic friction matters

By Marianna Zangrillo and Thomas Keil
in I by IMD 24 September 2026

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Board

Communication

Performance Management

Browse all topics

How to avoid six leadership decision traps

By Michael D. Watkins
in I by IMD Brain Circuits 23 September 2026

Summary

Explore six common leadership decision traps and proven remedies to improve outcomes, from precise problem framing to securing lasting team buy-in.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Strategy

Browse all topics

CHROs as Strategic Leaders - Tessa Boshoff - IbyIMD

By I by IMD
in I by IMD

Summary

Discover why today's CHROs must move beyond traditional HR to shape business strategy, drive growth, and influence executive decision-making.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Culture

Human Resources

Strategy

Talent Management

Browse all topics

Corporate spin-off innovation strategy: OPPO and OnePlus

By Nongfei Pan
in I by IMD

Summary

Explore how OPPO’s OnePlus experiment offers a four-step corporate spin-off innovation strategy to drive breakthroughs and bring new capabilities home.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Innovation

Strategy

Browse all topics