Each strategy is used to identify potential growth
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Strategy and Case Analysis
Ryanair
Ryanair
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EXECUTIVE SUMMARY
The report is focused on doing an analysis of the business by making a study of case. The
company chosen for case study was Ryanair. It was concluded from the report that Ryanair has a
high bargaining of buyers as well as its suppliers. The company has a high potential for
expansion in the Sub continental region but the competition in the region is intense which will it
have to take into consideration. In addition to that, company has a high risk due to Brexit as it
has many bases in the UK region and generates a high amount of business from there.
The report is focused on doing an analysis of the business by making a study of case. The
company chosen for case study was Ryanair. It was concluded from the report that Ryanair has a
high bargaining of buyers as well as its suppliers. The company has a high potential for
expansion in the Sub continental region but the competition in the region is intense which will it
have to take into consideration. In addition to that, company has a high risk due to Brexit as it
has many bases in the UK region and generates a high amount of business from there.
CONTENTS
INTRODUCTION...........................................................................................................................1
CONTEXT.......................................................................................................................................1
THEORY.........................................................................................................................................1
ANALYSIS......................................................................................................................................2
Porter’s five forces.......................................................................................................................2
PESTEL analysis.........................................................................................................................3
VRIO Analysis.............................................................................................................................5
Discussion........................................................................................................................................7
Ansoff’s Matrix...........................................................................................................................7
CONCLUSION................................................................................................................................8
RECOMMENDATION...................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION...........................................................................................................................1
CONTEXT.......................................................................................................................................1
THEORY.........................................................................................................................................1
ANALYSIS......................................................................................................................................2
Porter’s five forces.......................................................................................................................2
PESTEL analysis.........................................................................................................................3
VRIO Analysis.............................................................................................................................5
Discussion........................................................................................................................................7
Ansoff’s Matrix...........................................................................................................................7
CONCLUSION................................................................................................................................8
RECOMMENDATION...................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION
The report will focus on analysis and strategic positioning of the company in the market. A case
study of a business will be considered for preparation of this report. The company chosen is
Ryanair, it is an airline company based in Ireland (Uwagwuna, 2011). For the analysis various
models like Porter’s five forces, PESTEL and VRIO will be applied to find out the marketing
position, situation of the industry along with analysis of Ryanair’s internal and external
framework. In addition to that, report will make thorough analysis to identify the factors
affecting the positioning of the company in the existing market and its future market capacity.
Moreover, the report will also use Ansoff’s matrix to identify the potential strategies which can
be adopted by Ryanair in order to make an expansion (Barney & Hesterly, 2010). In the report a
precise discussion of the analysis will be done.
CONTEXT
Ryanair DAC is an airline company found in 1984 in Ireland. The company is popularly known
for its low cost airline facilities. It the largest budget airline in Europe and has served more
passenger than any other company in the region. It has a large fleet of 300 Boeing 737-800
aircrafts and other aircrafts for summer season traffic time. It carries customers in more than 40
countries in Europe and North Africa.
THEORY
Ansoff’s matrix: This is a strategic planning tool used by the management of the company to
identify the potential strategies for future growth of the company. The matrix consists of four
strategies i.e. market penetration, market development, product development and diversification.
Each strategy is used to identify potential growth alternatives for the business along with the
risks that are associated with the strategy. Among the four strategies diversification is the most
risk carrying strategy as it involves creation of a new product and new market expansion.
Porter’s five Forces: It is a marketing framework which is used by the company to identify and
analyse the competition persisting in the market (Dobbs, 2014). The framework operates on the
basis of organisation economics to identify the five forces involves in finding out the intensity of
competition in the market. It involves bargaining power of supplier and buyers, Rivalry in
market, substitutes and threat of new entrant to find out the competition in the industry.
1
The report will focus on analysis and strategic positioning of the company in the market. A case
study of a business will be considered for preparation of this report. The company chosen is
Ryanair, it is an airline company based in Ireland (Uwagwuna, 2011). For the analysis various
models like Porter’s five forces, PESTEL and VRIO will be applied to find out the marketing
position, situation of the industry along with analysis of Ryanair’s internal and external
framework. In addition to that, report will make thorough analysis to identify the factors
affecting the positioning of the company in the existing market and its future market capacity.
Moreover, the report will also use Ansoff’s matrix to identify the potential strategies which can
be adopted by Ryanair in order to make an expansion (Barney & Hesterly, 2010). In the report a
precise discussion of the analysis will be done.
CONTEXT
Ryanair DAC is an airline company found in 1984 in Ireland. The company is popularly known
for its low cost airline facilities. It the largest budget airline in Europe and has served more
passenger than any other company in the region. It has a large fleet of 300 Boeing 737-800
aircrafts and other aircrafts for summer season traffic time. It carries customers in more than 40
countries in Europe and North Africa.
THEORY
Ansoff’s matrix: This is a strategic planning tool used by the management of the company to
identify the potential strategies for future growth of the company. The matrix consists of four
strategies i.e. market penetration, market development, product development and diversification.
Each strategy is used to identify potential growth alternatives for the business along with the
risks that are associated with the strategy. Among the four strategies diversification is the most
risk carrying strategy as it involves creation of a new product and new market expansion.
Porter’s five Forces: It is a marketing framework which is used by the company to identify and
analyse the competition persisting in the market (Dobbs, 2014). The framework operates on the
basis of organisation economics to identify the five forces involves in finding out the intensity of
competition in the market. It involves bargaining power of supplier and buyers, Rivalry in
market, substitutes and threat of new entrant to find out the competition in the industry.
1
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PESTEL: PESTEL is an analytical tool used by the business to analyse factors effecting the
macro environment in the country. It takes into account six macro environmental factors to
identify the situation of organisation in the environment.
VRIO: In order to analyse whether a company’s core competence and its capabilities and resources
can be used for attaining an edge, the VRIO analysis is done (Barney & Hesterly, 2010).
ANALYSIS
Porter’s five forces
Bargaining power of buyers: The power of the buyer that is the customers is high in the
airline industry due to the cutthroat competition impeding in the industry and the lack of
loyalty towards a brand is a non existing concept for airlines. The customers have a large
base of alternate airlines they can choose in place of Ryanair. Also in case of Ryanair,
many other companies are providing low cost to passengers with a better service which
gives others an edge over the airline. The Switching cost is minimal or in cases nothing to
the customers.
Bargaining power of suppliers: Suppliers in the airline industry are the manufacturers
of aircrafts and carriers (Vining, 2011). The bargaining power of the manufacturers is
very high as there is less number of suppliers. The main two manufacturers in that market
for aircrafts are Airbus and Boeing. Ryanair has planned to replace fleet of Boeing 737-
800 with Boeing 737-MAX-200 aircraft. Ryanair generally purchases its aircrafts from
Boeing. The bargaining power of the company is ridiculously high being its only
suppliers currently. Moreover, the only other company which can compete with Boeing is
Airbus which leads to high bargaining power of suppliers as there is no real competition.
Threat of new entrant: It is a capital intensive industry which requires huge funds to
start a business. The threat of a new entrant in the industry is low for Rynair. In addition
to capital restriction, airline industry also needs a large amount of legal qualifications,
contact of distribution of channels. It is difficult for a new entrant to get an access to
distribution channels as getting a slot at an airport is hard along with the aspect that there
might be no slots free.
Threat of Substitutes: For the airline industry, this threat is relatively low as no other
means of transport has the capacity to travel in such less time and high speed (Tanwar,
2
macro environment in the country. It takes into account six macro environmental factors to
identify the situation of organisation in the environment.
VRIO: In order to analyse whether a company’s core competence and its capabilities and resources
can be used for attaining an edge, the VRIO analysis is done (Barney & Hesterly, 2010).
ANALYSIS
Porter’s five forces
Bargaining power of buyers: The power of the buyer that is the customers is high in the
airline industry due to the cutthroat competition impeding in the industry and the lack of
loyalty towards a brand is a non existing concept for airlines. The customers have a large
base of alternate airlines they can choose in place of Ryanair. Also in case of Ryanair,
many other companies are providing low cost to passengers with a better service which
gives others an edge over the airline. The Switching cost is minimal or in cases nothing to
the customers.
Bargaining power of suppliers: Suppliers in the airline industry are the manufacturers
of aircrafts and carriers (Vining, 2011). The bargaining power of the manufacturers is
very high as there is less number of suppliers. The main two manufacturers in that market
for aircrafts are Airbus and Boeing. Ryanair has planned to replace fleet of Boeing 737-
800 with Boeing 737-MAX-200 aircraft. Ryanair generally purchases its aircrafts from
Boeing. The bargaining power of the company is ridiculously high being its only
suppliers currently. Moreover, the only other company which can compete with Boeing is
Airbus which leads to high bargaining power of suppliers as there is no real competition.
Threat of new entrant: It is a capital intensive industry which requires huge funds to
start a business. The threat of a new entrant in the industry is low for Rynair. In addition
to capital restriction, airline industry also needs a large amount of legal qualifications,
contact of distribution of channels. It is difficult for a new entrant to get an access to
distribution channels as getting a slot at an airport is hard along with the aspect that there
might be no slots free.
Threat of Substitutes: For the airline industry, this threat is relatively low as no other
means of transport has the capacity to travel in such less time and high speed (Tanwar,
2
2013). The train system lacks the infrastructure and support to go the distance in shorter
hours. In addition to that Ryanair has a low cost strategy in place which allows it to have
lower cost than other means of travelling. Moreover the substitutes other than airline are
mostly do not have this much reach which allows the airline to a monopoly market.
Rivalry or competition: The competition in the airline industry is heavy, there around
168 airline companies in Europe regions among which around 45 percent of companies
are low cost carriers (LLC). This generates are a cut throat competition for Ryanair. Due
to intensity in competition every company has its own policy and strategies to operate in
the region. Many companies strive to lower their costs further by reducing in flight
facilities, baggage facility in order to attract more customers via lower costs.
PESTEL analysis
Political: Most of Ryanair’s routes are in countries (mostly in Europe) who are politically
quite stable resulting in Ryanair’s only concern being the local authorities who may
preferentially favour and protect home grown national carriers from foreign competition
thus increasing operational cost for Ryanair adversely affecting its profit margins.
However, there is major concern regarding UK because of the uncertainty over Brexit.
UK’s exit from EU in February 2020 with the transition period until December 2020 has
brought in significant scepticism to the aviation industry as there are speculation that UK
will not remain in open sky agreement. This has posed the aviation companies with high
uncertainties until the final terms are settled between UK and EU. Ryanair has a large no
of bases in UK. Thus, until the Brexit completes Ryanair should focus on the possible
growth away from UK for next two years. Additionally, frequent terrorist in European
countries like UK, France, Belgium has prompted airlines to tighten security measures.
Also, many alleged terrorist plots and targeted attacks on Ryanair are always a threat.
Increase in terrorism adversely affects tourism leading to low demand for air travel which
may have negative impacts on Ryanair.
Economic: After rising for past many years, fuel prices are falling or at least expected to
remain same, aiding to Ryanair’s operational margins (Gregorić, 2014). Weakening of
pound has adversely affected airlines industry because of squeeze of passenger spending
3
hours. In addition to that Ryanair has a low cost strategy in place which allows it to have
lower cost than other means of travelling. Moreover the substitutes other than airline are
mostly do not have this much reach which allows the airline to a monopoly market.
Rivalry or competition: The competition in the airline industry is heavy, there around
168 airline companies in Europe regions among which around 45 percent of companies
are low cost carriers (LLC). This generates are a cut throat competition for Ryanair. Due
to intensity in competition every company has its own policy and strategies to operate in
the region. Many companies strive to lower their costs further by reducing in flight
facilities, baggage facility in order to attract more customers via lower costs.
PESTEL analysis
Political: Most of Ryanair’s routes are in countries (mostly in Europe) who are politically
quite stable resulting in Ryanair’s only concern being the local authorities who may
preferentially favour and protect home grown national carriers from foreign competition
thus increasing operational cost for Ryanair adversely affecting its profit margins.
However, there is major concern regarding UK because of the uncertainty over Brexit.
UK’s exit from EU in February 2020 with the transition period until December 2020 has
brought in significant scepticism to the aviation industry as there are speculation that UK
will not remain in open sky agreement. This has posed the aviation companies with high
uncertainties until the final terms are settled between UK and EU. Ryanair has a large no
of bases in UK. Thus, until the Brexit completes Ryanair should focus on the possible
growth away from UK for next two years. Additionally, frequent terrorist in European
countries like UK, France, Belgium has prompted airlines to tighten security measures.
Also, many alleged terrorist plots and targeted attacks on Ryanair are always a threat.
Increase in terrorism adversely affects tourism leading to low demand for air travel which
may have negative impacts on Ryanair.
Economic: After rising for past many years, fuel prices are falling or at least expected to
remain same, aiding to Ryanair’s operational margins (Gregorić, 2014). Weakening of
pound has adversely affected airlines industry because of squeeze of passenger spending
3
on leisure travel expenses. It is expected that GBP will further fall post Brexit that may
put enormous pressure on fares and decrease profitability.
Socio-Cultural: Ryanair was perceived to provide poor customer service however, its
low cost strategy aids in attracting large number of customers who opt for value for
money over luxury travels (Schuetz, Mair & Schrefl, 2018). Growth in disposable income
of middle class has led to affordability of multiple short trips in a year for Gen Y
travellers. In contrast to previous generation, Gen Y expects greater customer satisfaction
and better services in lieu for an additional amount of money. Ryanair has realized this
and have rolled AGB to improve its image but it’s a long way to go as in December2015,
it got Skytrax 2 rating, worst of all budget airlines. Also, there is a craze among Gen Y
for travel and vacations on low budget opening up great opportunities for airlines which
are budget friendly. Ryanair can tap into this market by opening new routes and
increasing flights on older routes which connect hot tourist destinations. By providing
offers for newlyweds or couples, it can further increase its reach.
Technological: In current scenario, many technological advancements in
telecommunications like video conferencing, web meetings have substantially reduced
the need for physical appearances in business meetings putting a negative impact on air
travel by business class which is one of the major sources of revenue for airlines.
Millennial are more into excellent customer experience and advanced technological
solutions which are hassle free to manage itineraries (Yüksel, 2012). Also, they are ready
to spend more on ancillary services if base ticket charges are less. Ryanair have taken
considerable steps in this direction. For better customer experience, they have improved
web services, app and longer time table so they customers can plan their journey well
ahead in time. Certain features like holding fare for 24 hours for $5 and others are
lucrative. So with better managed and advanced app and more focus on digital marketing
and distribution channels, they seem digitally ready for Gen Y.
Environmental: Currently, all governments are continuously taking stringent measures
to control pollution. In addition, young population is more aware about growing
environmental concerns and is more appreciative towards industries who follow the suite.
In tandem with global concerns, Ryanair has undertaken various initiatives to reduce
4
put enormous pressure on fares and decrease profitability.
Socio-Cultural: Ryanair was perceived to provide poor customer service however, its
low cost strategy aids in attracting large number of customers who opt for value for
money over luxury travels (Schuetz, Mair & Schrefl, 2018). Growth in disposable income
of middle class has led to affordability of multiple short trips in a year for Gen Y
travellers. In contrast to previous generation, Gen Y expects greater customer satisfaction
and better services in lieu for an additional amount of money. Ryanair has realized this
and have rolled AGB to improve its image but it’s a long way to go as in December2015,
it got Skytrax 2 rating, worst of all budget airlines. Also, there is a craze among Gen Y
for travel and vacations on low budget opening up great opportunities for airlines which
are budget friendly. Ryanair can tap into this market by opening new routes and
increasing flights on older routes which connect hot tourist destinations. By providing
offers for newlyweds or couples, it can further increase its reach.
Technological: In current scenario, many technological advancements in
telecommunications like video conferencing, web meetings have substantially reduced
the need for physical appearances in business meetings putting a negative impact on air
travel by business class which is one of the major sources of revenue for airlines.
Millennial are more into excellent customer experience and advanced technological
solutions which are hassle free to manage itineraries (Yüksel, 2012). Also, they are ready
to spend more on ancillary services if base ticket charges are less. Ryanair have taken
considerable steps in this direction. For better customer experience, they have improved
web services, app and longer time table so they customers can plan their journey well
ahead in time. Certain features like holding fare for 24 hours for $5 and others are
lucrative. So with better managed and advanced app and more focus on digital marketing
and distribution channels, they seem digitally ready for Gen Y.
Environmental: Currently, all governments are continuously taking stringent measures
to control pollution. In addition, young population is more aware about growing
environmental concerns and is more appreciative towards industries who follow the suite.
In tandem with global concerns, Ryanair has undertaken various initiatives to reduce
4
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CO2 emissions and protect environment. It operates a fleet of Boing 737 and 800 with
most of the fleet size under the age of 6 years thus guaranteeing much lower emissions
compared to its competitors. To regulate CO2 emissions, EU have passed a legislation
which have led to increased operations cost for Ryanair as according to it, it is mandatory
for airlines to operate under the given units by EU emission trading system and the
excess needs to be fulfilled from the market or the Government auctions (Makos, 2015).
However, due to already less emissions, Ryanair does hold a competitive advantage.
Legal: Ryanair mostly operates its business in the European countries where the political
environment and laws are lenient for European companies (Pan, Chen, & Zhan, 2019).
Though the only major restraint it faces is from country’s trying to promote local
companies often put restriction on foreign countries. In addition to that, the biggest legal
challenge for Ryanair is from the Brexit. Ryanair gets a large sum of business from UK;
with the Brexit in motion, the outcomes of the laws around its exit from EU are unknown.
In case of heavy restriction on travelling from UK to EU nations, the traffic will decrease
which will lower the demand for flights hampering the business for Ryanair. After the
outcome the company may be obligated to comply with different sets of laws and
regulation enacted by UK and EU which will increase its difficulty and impede its
operations on a low cost model.
VRIO Analysis
V-value - Ryanair delivers value in terms of lowest price flying option to the customers (Pesic,
Milic & Stankovic, 2013). Its ‘no frills strategy’ is attracting millions of price sensitive
customers, thus making their offering very valuable. The lowest price is delivered as a result of
combination of low operational cost, reduced airport charges for the airlines and the government
subsidies.
R-rareness. This emphasizes on how rare the resources of the companies are for gaining
competitive advantages in the industry (Runping & Shengjia, 2010). In the short-haul budget
airline business, Ryanair is the only company receiving government subsidies and running on
reduced airport charges. Further its reputation as the lowest cost airline also makes it rare among
its competitor. Its leadership and high war chest also add to the rare resources company enjoy
gaining competitive advantages in the industry.
5
most of the fleet size under the age of 6 years thus guaranteeing much lower emissions
compared to its competitors. To regulate CO2 emissions, EU have passed a legislation
which have led to increased operations cost for Ryanair as according to it, it is mandatory
for airlines to operate under the given units by EU emission trading system and the
excess needs to be fulfilled from the market or the Government auctions (Makos, 2015).
However, due to already less emissions, Ryanair does hold a competitive advantage.
Legal: Ryanair mostly operates its business in the European countries where the political
environment and laws are lenient for European companies (Pan, Chen, & Zhan, 2019).
Though the only major restraint it faces is from country’s trying to promote local
companies often put restriction on foreign countries. In addition to that, the biggest legal
challenge for Ryanair is from the Brexit. Ryanair gets a large sum of business from UK;
with the Brexit in motion, the outcomes of the laws around its exit from EU are unknown.
In case of heavy restriction on travelling from UK to EU nations, the traffic will decrease
which will lower the demand for flights hampering the business for Ryanair. After the
outcome the company may be obligated to comply with different sets of laws and
regulation enacted by UK and EU which will increase its difficulty and impede its
operations on a low cost model.
VRIO Analysis
V-value - Ryanair delivers value in terms of lowest price flying option to the customers (Pesic,
Milic & Stankovic, 2013). Its ‘no frills strategy’ is attracting millions of price sensitive
customers, thus making their offering very valuable. The lowest price is delivered as a result of
combination of low operational cost, reduced airport charges for the airlines and the government
subsidies.
R-rareness. This emphasizes on how rare the resources of the companies are for gaining
competitive advantages in the industry (Runping & Shengjia, 2010). In the short-haul budget
airline business, Ryanair is the only company receiving government subsidies and running on
reduced airport charges. Further its reputation as the lowest cost airline also makes it rare among
its competitor. Its leadership and high war chest also add to the rare resources company enjoy
gaining competitive advantages in the industry.
5
I-imitability - The company started to operate in the secondary routes and was able to attract a
major portion of price sensitive customers due to its low-cost offerings (Powalla & Bresser,
2010). Ryanair received government subsidies and airport charge reduction due to the above-
mentioned factors as it helps in the development of secondary airports quickly and thereby
bringing in more travellers and consumption for local government. Thus, this low-cost culture
and subsidies are not easily imitable.
O-organization- Based on the case, Ryanair has fully utilized its available resources and
capabilities leading to lower costs. Its operational excellence can be attributed to strong
operations management team and organisational leadership leading to sustainable competitive
advantage.
Ryanair’s VRIO framework
Value Rarity Imitable Organisation Cometitive Implication
New Fleet Yes No No Yes Temporary Competetive
advantage
Low cost Yes No No No Competitive Parity
Reputation
and Brand
Yes Yes Yes No Unused competitive
advantage
Organisationa
l
Yes Yes Yes Yes Sustainable competitive
advantage
Financial Yes No Yes Yes Unused competitive
advantage
Technology Yes No No Yes Temporary Competetive
advantage
Human
Resources
No No No No Competitive disadvantage
Summary of analysis
Ryanair faces low threat of substitutes in the market as it has low cost policy and the airline
mode has farthest and fastest range in comparison to other modes. It was discovered that the
competition in the airline market in Europe is intense with around 163 airline companies
operating in the region.
6
major portion of price sensitive customers due to its low-cost offerings (Powalla & Bresser,
2010). Ryanair received government subsidies and airport charge reduction due to the above-
mentioned factors as it helps in the development of secondary airports quickly and thereby
bringing in more travellers and consumption for local government. Thus, this low-cost culture
and subsidies are not easily imitable.
O-organization- Based on the case, Ryanair has fully utilized its available resources and
capabilities leading to lower costs. Its operational excellence can be attributed to strong
operations management team and organisational leadership leading to sustainable competitive
advantage.
Ryanair’s VRIO framework
Value Rarity Imitable Organisation Cometitive Implication
New Fleet Yes No No Yes Temporary Competetive
advantage
Low cost Yes No No No Competitive Parity
Reputation
and Brand
Yes Yes Yes No Unused competitive
advantage
Organisationa
l
Yes Yes Yes Yes Sustainable competitive
advantage
Financial Yes No Yes Yes Unused competitive
advantage
Technology Yes No No Yes Temporary Competetive
advantage
Human
Resources
No No No No Competitive disadvantage
Summary of analysis
Ryanair faces low threat of substitutes in the market as it has low cost policy and the airline
mode has farthest and fastest range in comparison to other modes. It was discovered that the
competition in the airline market in Europe is intense with around 163 airline companies
operating in the region.
6
Discussion
Ansoff’s Matrix
In order to determine the risk of growth for an organisation Ansoff’s matrix utilized (Taylor,
2012). The matrix contains 4 different strategies for growth potential and analysis the risks that
lie with each strategy.
Figure 1: Ansoff’s Matrix
(Source: Self)
Ryanair can create a new line of premium quality leisure airline service to passengers. It can
offer this service on premium quality high prices. Such will help it gain a new customer base in
the current market who prefer to fly with leisure first class service quality for high fares. The
markets like Middle East have a high demand for premium airlines. Ryanair should consider
expanding their business to these locations in order to secure more market. The company can
also reach for on board tech facility in its existing flights to enhance customer satisfaction. Pay
on basis Wi-Fi and television services can be introduced to attract more customers (Tsatsoula,
2018). This contains a high stage of risk as the brand image of Ryanair is built on low cost
carries, so the trust on the company will be low for leisure preferring customers. In addition to
that the market has intense competition and the investment required to build a new fleet contains
a tight risk factor.
7
MARKET
PENETRATION
Advertisements
Application
imporovement
PRODUCT
DEVELOPEMENT
Premium service
Payed Wifi and TV
MARKET
DEVELOPMENT
New markets
Intercontinental
DIVERSIFICATION
Hotels
Holiday packages
Collaboration
Ansoff’s Matrix
In order to determine the risk of growth for an organisation Ansoff’s matrix utilized (Taylor,
2012). The matrix contains 4 different strategies for growth potential and analysis the risks that
lie with each strategy.
Figure 1: Ansoff’s Matrix
(Source: Self)
Ryanair can create a new line of premium quality leisure airline service to passengers. It can
offer this service on premium quality high prices. Such will help it gain a new customer base in
the current market who prefer to fly with leisure first class service quality for high fares. The
markets like Middle East have a high demand for premium airlines. Ryanair should consider
expanding their business to these locations in order to secure more market. The company can
also reach for on board tech facility in its existing flights to enhance customer satisfaction. Pay
on basis Wi-Fi and television services can be introduced to attract more customers (Tsatsoula,
2018). This contains a high stage of risk as the brand image of Ryanair is built on low cost
carries, so the trust on the company will be low for leisure preferring customers. In addition to
that the market has intense competition and the investment required to build a new fleet contains
a tight risk factor.
7
MARKET
PENETRATION
Advertisements
Application
imporovement
PRODUCT
DEVELOPEMENT
Premium service
Payed Wifi and TV
MARKET
DEVELOPMENT
New markets
Intercontinental
DIVERSIFICATION
Hotels
Holiday packages
Collaboration
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CONCLUSION
Ryanair is having long-term competitive advantage in Organisation and Financial resources as it
able to translate its resources and capabilities into competitive advantage. However, in terms of
human resources, it is in a place of competitive disadvantage because of mishaps and bad
relationships with pilots. The report concludes that the threat of substitutes and new entrant is
very unlikely for Ryanair as the company the investment involved in entering the industry.
Along with that, it was found that a new entrant will have to get licences whose process is
difficult to get through. The report also found that Ryanair faces resistance from foreign
countries in Europe.
RECOMMENDATION
It is recommended that Ryanair should work on its competitive parities and tap the unused
capabilities and resources to turn Reputation/Brand and Financial prowess to gain sustainable
competitive advantage. Further, it should also work on acquiring and retaining valuable human
resources.
It is recommended to Ryanair to setup a new brand image for itself by providing premium
quality services to its customers within existing market.
While it can also expand to Middle East and Asian regions where the demand for premium
Airline is high.
The company is also recommended to expand its business further in Europe to replace
concentration from UK as the Brexit causes an uncertain and threatening condition for the
company.
8
Ryanair is having long-term competitive advantage in Organisation and Financial resources as it
able to translate its resources and capabilities into competitive advantage. However, in terms of
human resources, it is in a place of competitive disadvantage because of mishaps and bad
relationships with pilots. The report concludes that the threat of substitutes and new entrant is
very unlikely for Ryanair as the company the investment involved in entering the industry.
Along with that, it was found that a new entrant will have to get licences whose process is
difficult to get through. The report also found that Ryanair faces resistance from foreign
countries in Europe.
RECOMMENDATION
It is recommended that Ryanair should work on its competitive parities and tap the unused
capabilities and resources to turn Reputation/Brand and Financial prowess to gain sustainable
competitive advantage. Further, it should also work on acquiring and retaining valuable human
resources.
It is recommended to Ryanair to setup a new brand image for itself by providing premium
quality services to its customers within existing market.
While it can also expand to Middle East and Asian regions where the demand for premium
Airline is high.
The company is also recommended to expand its business further in Europe to replace
concentration from UK as the Brexit causes an uncertain and threatening condition for the
company.
8
REFERENCES
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Framework: Development of Scale for Resource and Capabilities Organization (Case
Study: XYZ Company Animal Feed Business Unit). Asian Business Research Journal, 3,
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Barney, J. B. and Hesterly, W. S. (2010). VRIO framework. Strategic management and
competitive advantage, 68-86.
Barney, J. B. and Hesterly, W. S. (2010). Strategic management and competitive advantage:
Concepts and cases (pp. 4-25). Upper Saddle River, NJ: Prentice Hall.
Dobbs, M. E. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review.
Gregorić, M. (2014). PESTEL analysis of tourism destinations in the perspective of business
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Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and
growth-an interactive triangle. Management and Administrative Sciences Review, 2(2),
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Kipley, D., Lewis, A. O. and Jeng, J. L. (2012). Extending Ansoff’s Strategic Diagnosis Model:
Defining the Optimal Strategic Performance Positioning Matrix. Sage Open, 2(1),
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Lin, C., Tsai, H. L., Wu, Y. J. and Kiang, M. (2012). A fuzzy quantitative VRIO‐based
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Makos, J. (2015). An overview of the PESTEL framework. PESTLE Analysis, 18.
Pan, W., Chen, L. and Zhan, W. (2019). PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering, 35(1), 05018013.
Pesic, M. A., Milic, V. J. and Stankovic, J. (2013). APPLICATION OF VRIO FRAMEWORK
FOR ANALYZING HUMAN RESOURCES’ROLE IN PROVIDING COMPETITIVE
ADVANTAGE. Tourism & Management Studies, 575-586.
Powalla, C. and Bresser, R. K. (2010). Performance forecasts in uncertain environments:
Examining the predictive power of the VRIO-framework.
Runping, L. and Shengjia, X. (2010). Human Resource and Competitive Advantages: An
Improved VRIO Framework [J]. Science & Technology Progress and Policy, 9.
9
Ariyani, W. and Daryanto, A. (2018). Operationalization of Internal Analysis Using the VRIO
Framework: Development of Scale for Resource and Capabilities Organization (Case
Study: XYZ Company Animal Feed Business Unit). Asian Business Research Journal, 3,
9-14.
Barney, J. B. and Hesterly, W. S. (2010). VRIO framework. Strategic management and
competitive advantage, 68-86.
Barney, J. B. and Hesterly, W. S. (2010). Strategic management and competitive advantage:
Concepts and cases (pp. 4-25). Upper Saddle River, NJ: Prentice Hall.
Dobbs, M. E. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review.
Gregorić, M. (2014). PESTEL analysis of tourism destinations in the perspective of business
tourism (MICE). In 22nd International Congress, Tourism & Hospitality Industry 2014,
Trends in Tourism and Hospitality Management.
Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and
growth-an interactive triangle. Management and Administrative Sciences Review, 2(2),
196-206.
Kipley, D., Lewis, A. O. and Jeng, J. L. (2012). Extending Ansoff’s Strategic Diagnosis Model:
Defining the Optimal Strategic Performance Positioning Matrix. Sage Open, 2(1),
2158244011435135.
Lin, C., Tsai, H. L., Wu, Y. J. and Kiang, M. (2012). A fuzzy quantitative VRIO‐based
framework for evaluating organizational activities. Management Decision.
Makos, J. (2015). An overview of the PESTEL framework. PESTLE Analysis, 18.
Pan, W., Chen, L. and Zhan, W. (2019). PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering, 35(1), 05018013.
Pesic, M. A., Milic, V. J. and Stankovic, J. (2013). APPLICATION OF VRIO FRAMEWORK
FOR ANALYZING HUMAN RESOURCES’ROLE IN PROVIDING COMPETITIVE
ADVANTAGE. Tourism & Management Studies, 575-586.
Powalla, C. and Bresser, R. K. (2010). Performance forecasts in uncertain environments:
Examining the predictive power of the VRIO-framework.
Runping, L. and Shengjia, X. (2010). Human Resource and Competitive Advantages: An
Improved VRIO Framework [J]. Science & Technology Progress and Policy, 9.
9
Schuetz, C. G., Mair, E. and Schrefl, M. (2018). PESTEL Modeler: Strategy analysis using
MetaEdit+, iStar 2.0, and semantic technologies. In 2018 IEEE 22nd International
Enterprise Distributed Object Computing Workshop (EDOCW) (pp. 216-219). IEEE.
Tanwar, R. (2013). Porter’s generic competitive strategies. Journal of business and
management, 15(1), 11-17.
Taylor, E. C. (2012). Competitive Improvement Planning: Using Ansoff's Matrix With Abell's
model To Inform The Strategic Management Process. In Allied Academies International
Conference. Academy of Strategic Management. Proceedings (Vol. 11, No. 1, p. 21).
Jordan Whitney Enterprises, Inc.
Tsatsoula, E. (2018). Application of Ansoff's Matrix-Methodology: Marketing Growth Strategies
For Products.
Uwagwuna, C. (2011). How the Macroeconomic Environment of the Airline Industry Affects the
Strategic Decision of Boing Vs Airbus: A Case Study. GRIN Verlag.
Vining, A. R. (2011). Public agency external analysis using a modified “five forces”
framework. International Public Management Journal, 14(1), 63-105.
Yüksel, I. (2012). Developing a multi-criteria decision making model for PESTEL
analysis. International Journal of Business and Management, 7(24), 52.
10
MetaEdit+, iStar 2.0, and semantic technologies. In 2018 IEEE 22nd International
Enterprise Distributed Object Computing Workshop (EDOCW) (pp. 216-219). IEEE.
Tanwar, R. (2013). Porter’s generic competitive strategies. Journal of business and
management, 15(1), 11-17.
Taylor, E. C. (2012). Competitive Improvement Planning: Using Ansoff's Matrix With Abell's
model To Inform The Strategic Management Process. In Allied Academies International
Conference. Academy of Strategic Management. Proceedings (Vol. 11, No. 1, p. 21).
Jordan Whitney Enterprises, Inc.
Tsatsoula, E. (2018). Application of Ansoff's Matrix-Methodology: Marketing Growth Strategies
For Products.
Uwagwuna, C. (2011). How the Macroeconomic Environment of the Airline Industry Affects the
Strategic Decision of Boing Vs Airbus: A Case Study. GRIN Verlag.
Vining, A. R. (2011). Public agency external analysis using a modified “five forces”
framework. International Public Management Journal, 14(1), 63-105.
Yüksel, I. (2012). Developing a multi-criteria decision making model for PESTEL
analysis. International Journal of Business and Management, 7(24), 52.
10
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