Business Strategy: Analysis of Ryanair's Macro Environment and Competitive Forces

Business Strategy

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
A) Macro environment......................................................................................................................3
B) Five competitive forces.................................................................................................................4
Competitor analysis...........................................................................................................................5
Analysis of firms capabilities............................................................................................................7
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
It is very essential for business to analyse the internal and external factor which are
affecting the functioning of the organization so that the organization can make decisions and
plan accordingly. Ryanair is a Ireland company which is having its headquarters in Ireland
itself. There are 225 destinations which the organization is covering and number of
employees in the organization are 17,500 as of 2019. This report is going to consist of macro,
micro and competitive forces which are affecting the functioning of the selected industry.
MAIN BODY
A) Macro environment
It is very important for the organization to analyse the external forces or environment
which can affect the organization so that there is a better direction which can be implemented
in the organization. These external forces are not in the control of the company which is why
making decisions accordingly are very essential.
 Political Factors
The taxes have increased by the government which is having a negative impact on the
tickets of the organization which is making the company have low profit margins (Anwar,
Shah and Hasnu, 2016). There is at least three times raise in the taxes by the government of
UK because of Brexit which is making the company increase the prices of their company as
well. The largest base of the company is UK and if the government is doing that then they
will not be able to function effectively.
 Economic Factors
Ryanair is a low costing airline for the customers but because of the high taxes the
company is not being able to maintain their economic factor in the market. There is a
minimum spending on the passengers leisure travel with this airline which is not good for the
company’s reputation in the market.
 Social Factors
There is a new study of the population of United Kingdom which is out of ten people at
least nine people go away for holidays which can be a great advantage for the organization.
There is safety and comfort which the passengers look forward for in airlines which Ryanair