What is Strategy? Definition, Components

Running Head: Business Strategy
[Company name]
Business
Strategy
[Document subtitle]

Business Strategy 1
Contents
Introduction................................................................................................................................1
Overview of Strategic Initiatives...............................................................................................1
Trends.........................................................................................................................................2
Porter Five Forces......................................................................................................................3
Internal Analysis........................................................................................................................4
Core Competencies....................................................................................................................4
Value Chain Analysis.................................................................................................................5
SWOT Analysis.........................................................................................................................5
External Analysis.......................................................................................................................6
Financial Performance...............................................................................................................8
Recommendations......................................................................................................................8
References..................................................................................................................................9

Business Strategy 2
Introduction
The purpose of this paper is to enlighten the reader with the information about the market
analysis and strategies implemented by the organization Ryanair in the worldwide
environment. The organization is present in the aviation industry and is an Irish budget airline
that was found in the year 1984. The organization is headquartered in Swords, Dublin and has
primary operational bases at Dublin and London Stansted airports. The organization is a part
of Ryanair Holding family of airlines. The organization was recalled as the biggest European
budget airlines estimated by scheduled passengers flown, and carried more international
passengers than any other airlines in the European in the environment. Further, the paper
highlight details about the internal as well as external environmental analysis of the company.
The latter part of the report highlight financial competency of the company and
recommendations for the organisation to grow in international environment. More details
about the report are mentioned below:
Overview of Strategic Initiatives
The business strategies of Ryanair works with a motive to ‘Fly for Free’ in the worldwide
environment. The company one of the largest airlines present in the European environment
that works to provide services that let the customers have a wonderful experience. The
organization has rapidly expanded its services in the worldwide environment and has about
1000 routes with 200 aircraft and 40 bases as well. The business model of the company is
based on a Southwest airline in USA. As the tagline suggests, the company makes use of cost
advantage strategy in the environment with no frills airline as well. The strategic initiatives
taken by the organization works on providing high degree of satisfaction of the customers in
the environment by providing them efficient services as well. Further, it should be noted that
the company is consistently performing well in the international environment but the

Business Strategy 3
occurrence of COVID-19 pandemic that affected the position of the organization adversely
people have stopped travelling. The European low cost leaders of the company helps the
business in strictly following the desired actions in the external environment while
considering the satisfaction level of customers. The company also earns competitive
advantage in the market of Ireland. Efficient price formation and implementation strategy of
airline helps the organization in achieving sales successfully. The customers also feel that the
company offer best price opportunity to them every time they book tickets from the Ryanair.
The company is a sophisticated brand that holds a differentiated brand value in the
international environment.
Financial Performance
Looking at the financial analysis of the company, it should be noted that the company
Ryanair Airlines is currently at a profitable position in the environment. The company has a
price to sales ratio of 1.4 and holds revenue of 5.6% in the year 2019. This means that the
organization attained an increment in the revenue of 5.6%. The net margin of the company is
12.14% and return on equity of 18.70%. Thus, it should be noted that the actions of the
company are helping the stakeholders to attain better position in the business environment.
However, trends show that profitability of the company has reduced as compared to previous
years. Therefore, there is still good scope for the organization to improve its functions and
attain satisfaction of the customers at a better pace (Morning Star 2020).
Industry Overview and Analysis
The aviation industry is growing with a rapid speed and the companies present in this
industry have started introducing such changes in their business so as to grow effectively.
The trends of aviation industry explains profitability because the e-commerce businesses