Ryan air faced the challenges of fierce competition from older, larger and well established airlines-BA and Aer Lingus. Despite increasing customer volume, the company had suffered from a great deal of turbulence and managerial crisis in early 1990s. The five chief executives were changed and losses accumulated to £20 million. In order to damage competition and survive in fiercely competitive business environment the airline revamped itself to become Europe’s first low-fares and no-frills carrier airline and established its business on the model of Southwest Airlines which has been a Texas based successful operator in the airline industry.
External analysis base on the five forces framework