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Unit Name: Strategy and Case Analysis
Unit Code: MNG93210
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Strategy and Case Analysis
(Strategic Position and Strategic Choice)
Unit Name: Strategy and Case Analysis
Unit Code: MNG93210
Student Name:
Student ID No.:
Assignment Title: Report
Word count: 2500

Executive summary
The rise in the competition in the market has made the company to adopt the different strategies
which helps them in managing the operations. The aim of the report is to provide study of case
study of Ryanair: the low fares airline – ‘always getting better’?. The findings of analysis
presented that there are high intense competition. However, the company findings high
bargaining power of the buyers and suppliers. There is no risk of the substitutes or for the new
entrants who show that industry is not attractive in that way. The findings of PESTLE analysis
which shows that Ryanair deals with the issue of the high political issues, currency can influence
the operations, high opportunities for the customer’s needs, technological up-gradation and many
others. The VRIO analysis shows that there are wide range of resources and capabilities that are
managed by the company.
Content

s
Introduction......................................................................................................................................3
Overview of Case study...................................................................................................................3
Strategic position and choices.........................................................................................................4
Competitive-forces analysis.........................................................................................................4
PESTLE analysis.........................................................................................................................5
VRIO analysis..............................................................................................................................8
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
Appendix 1.....................................................................................................................................14
Appendix 1.1 Porter’s five forces description...........................................................................14
Appendix 1.2 PESTLE analysis description..............................................................................14

Introduction
In the present environment, every business performs strategic position and strategic choice in
order to deal and survive complex environment. The strategic position is concerned with
influence on approach of outside environment which consists of the assets and capabilities with
predictions as well as impact of the stakeholders. According to strategic position, the strategic
choice includes the decision which determines the strategy of company in near future. The
assessment aim is to investigate about the European airline Ryanair case study presented which
shows the application of the strategic position and choice. The analysis is based on the different
theories and frameworks which include competitive forces analysis, PESTLE analysis and VRIO
analysis.
Overview of Case study
The case study is about Ryanair: the low fares airline – ‘always getting better’?, which shows
that Ryanair is first and largest budget airline in Europe which has enjoyed development and
achievement according to the thoroughly that are applied in low-cost model of business with the
healthy financial and operating achievement majorly at time of the monetary recession (Johnson,
2016). The case shows the analysis and deploys the interior resources and capabilities to add
value to clients and this offers the sustainable strategic benefit. The case provide the exploration
of the challenges of evolving and spreading strategic capabilities in order to provide the response
to the changing conditions of environmental and industry.

Strategic position and choices
The position of the company is analysed with the assistance of the different theories which
assistances in understand the outside environment as well as use of the resources and capabilities
in right way (Frynas and Mellahi, 2015). (Refer Appendix 1.1)
Competitive-forces analysis
The porter’s five forces model is used to control attractiveness of the industry which include the
weakness and strength of the industry in which businesses are operating (Grant 2016). Based on
case study, porters five forces model is used for study Ryanair.
Bargaining power of suppliers: - The case study shows that the airline industry supplier have
the high bargaining power which shows that the switching power of suppliers remains high
(Haider, et al, 2017). The suppliers offer the Boeing to the Ryanair in the market of Europe
which is essential for the operations. In the case study, this has been determined that the year
2019 shows that Boeing 737-800 is scheduled to production and Ryanair will introduce the new
Boeing 197 seat with 737 Max 200 aircraft that is designed to provide replacement to Boeing
737- 800.
Bargaining power of buyer: - Some of the customers were prepared to pay the advanced fares
to the challengers for the improved consumer experience. The strategy that has been followed by
the company include providing the clients with the more selections with better travel as well as
digital experience while maintain the budget fares. The bargaining power of consumers is high as
customers can switch to any airline if they don’t want to consider the cost and they want high-
end experience (Kotler, Keller, Ang, Tan, and Leong, 2018).

Competitive Rivalry: - In the case study, this has been found that competition is high-end
competition from the other carriers that are providing the cheap fares (Scholes, et al, 2014). One
of main competitors of business comprises of easyJet who is expanding business by opening the
new routes which are not presented served by any of the carriers.
Threat of the substitutes: - In the case study, this has been witnessed that generally customers
wants to avail the services from the airline that is able to providing the low cost services to the
customers comparing it with the other (Wilson and Gilligan, 2012). There is no as such threat of
the substitutes as due to low cost of airline people travel through airline rather than other mode
of transport.
Threat of the new entrants: - In airline industry, there is low level of threat of new entrants as it
becomes difficult for company to enter into the market due to the great wealth need and
equipment’s (Rothaermel, 2015). It is difficult for any new airline company to compete against
the Ryanair and to follow the low cost strategy.
PESTLE analysis
PESTLE analysis is considered as one of the framework to evaluate the key aspects that
influence the working of business. The analysis includes the threats and opportunities that the
company will find within the market (Ho, 2014). Considering the case of the Ryanair, the
analysis of the factors has been done. (Refer Appendix 1.2)
Political factors
The case study shows that the Ryanair is continued to denounce the charges as well as the
conditions that are majorly compulsory by the greatest administrations at the airports in form of
the air passenger obligations. This can be understood with the example of the argument with the

Athens Airport (AIA) over supposedly high duties obligatory majorly for the services and
installations. In the near future, this has been found that there is threat for the company due to
rise in the economic crises that decline the traffic (Hollensen, 2015). In addition to this, the
change in the labour laws are expected to change by the government in the near future which will
influence the working directly.
Economic factors
In the case study, this has been determined that one of the major challenges which have been
witnessed by the company is related to the economic conditions that could derail the possible
benefits of the AGB strategy. Furthermore, the company found the risk with the Euro as a
currency. It has been determined that there is widespread route system within the Eurozone
nations. The business and value of its Euro-dominated the resources would lead to the negative
impact on the division of euro or exit of associates from it (Kotler, 2015). The maximum of the
Ryanair business is conducted in UK due to which failure of the Euro against the genuine could
be tough. The change in the euro currency affects the prices of the fuels which ultimately lead to
the impact on the prices of tickets offered by the company.
Social factor
In the case study, this has been determined that the client traffic for seasonal was more than 30
million which include the regular load factor of 95% and more than 90% punctuality (Johnson,
2016). This shows that most of the customers like to go out in summers which are considered as
their vacation which makes them to avail a trip. The low cost of the airline is benefit and leads to
the opportunities for Ryanair as they provide the services at the low cost which are quite easy to
avail by the customers. The customers plan for the trip in summers as they can avail the benefit

of low cost airline (Shaw, 2016). In the year future till 2030, there is wide opportunity that the
company will get the benefit in summers which is considered as the peak season for them.
Technological factors
In the present environment, the company like Ryanair needs to adopt new technology so that
they can provide high value to their customers. The company need to bring the change due to
which they took the decision to make the investment in the capabilities related to the digital and
technology (Chernev, 2018). The company wants to become the leader within the industry due to
which they are adopting the digital technology and formed the Ryanair Labs with the team who
are working on the new digital platforms which improve the experience of the clients with the
company. This has been found that this leads to the occasion for business that they can adopt
different technologies which not only offer the high value to customers or improve their
experience but will try to attain the vision of company that is to become the leading company. In
the case, this has found that company has introduced the simpler website and new app with the
simple feature called MyRyanair which is allows the customer registration functions. In the
interior of the aircraft there is installation of the new features which is unique and lead to high
opportunities for the customer satisfaction.
Legal factors
It has been found that the legal proceedings are required to be managed by every company but
Ryanair has been in process with EU for ended a period related to the suspected delivery of
national aid at the particular airports (Quelch, 2017). The company been in the legal obligation in
which they won some of the cases but with this they also lost some of the cases. This shows that
the company has high threat of being indulge in the legal framework which might lead to the rise

in the legal cases against the company. In the different nations, there are different legal elements
which are required to be considered by the company as they are operating business in the
countries.
Environmental factors
Ryanair Company has the fleet which is one of the youngest and this is the reason it is producing
every less emissions and additional globally welcoming than the extra transporters majorly when
it comes to the legacy carriers. Thus, this can be considered as one the opportunities to the
Ryanair in the near future (Vargas-Hernandez and Medrano, 2020).
VRIO analysis
The term VRIO Analysis is an analytical technique which is used by the companies to evaluate
company’s resources and capabilities. This technique is proved as the competitive advantages for
the companies due to which they conduct the VRIO analysis (Gregory, Ngo and Karavdic,
2019). The analysis of the Ryanair VRIO which includes resources and capabilities is presented
below: -
V- value: - This value shows that the resources of the Ryanair are able to deploy to attain the
needs and expectations of the customers. The strategy of the company for the fare and route
strategy, less working price, aircraft fleet, airport costs, and others are considered as the value for
the company with the help of which they are able to encounter requirements of clients. The
business model allows company to deliver services at the low prices which is expected by the
millions of the customers.
R-Rareness: - This rareness shows that the resources that can only be acquired by the company
and they are rare which leads to the competitive advantage for that company (Alam and

Wulandari, 2019). The resources which are maintained by the Ryanair are rare also which
include subsidiaries by the government. This resource is not maintained by the every company
and also not by the competitors who include EasyJet.
I – Imitate: - This shows that the resources of the company are considered as costly to imitate.
All the resources that are maintained by the company are very hard to imitate or transfer while
comparing it with the competitors. All these resources provide the competitive advantage to the
company.
O-Organization: - The resources don’t confer any of the benefits for the company if it is not
organized with the motive to capture the value for them. According to case study, Ryanair makes
the effective usage of the different assets as well as capabilities to offer lowest cost and price
effectively. It has been found that the strong management team with the effective CEO is
essential to form the competitive advantage (Myre, 2015).
Value Rare Imitate Organisation Competitive
Implications
No frills
strategy
Yes No No Yes Temporary
Competitive
advantage
New Fleet Yes No No Yes Competitive
advantage
Low Cost
culture
Yes No Yes Yes Temporary
Competitive
advantage

Government
subsidiary
Yes Yes Yes Yes Sustained
competitive
advantage
Recommendations
 It is suggested to the company to adopt the opportunities present in the external
environment and to take the required action to deal with the risks that are available in the
market.
 The company need to follow the legal obligations which will help them to secure from
the different risk and penalty which will affects the revenue of the company.
 In order to improve chances of being persistently profitable business should focus on the
personalised services with the improved technology and experience of customers which
will help them in retaining the customers and meeting their needs.

Conclusion
At the end of the report, this can be summarised that it is essential for European airline Ryanair
to consider the application of the strategic position and strategic choices. The analysis reflects
that there is moderate attractiveness which is understood with the help of the competitive forces
analysis. The competition forces show that Ryanair deals with the intense competition. PESTLE
analysis demonstrates that the business has widespread variety of opportunities and threats in the
market which will leads to the changes in the operation. The VRIO analysis shoes that the
companies has wide ranges of resources and energies which helps them to reach the competitive
advantage in market. According to analysis recommendation has been provided to the company
for the profitability in the near future.

References
Alam, P.F. and Wulandari, S., 2019, March. Establishing Waste Management System Strategy
by Using Competitive Positioning Analysis. In 2018 International Conference on Industrial
Enterprise and System Engineering (ICoIESE 2018). Atlantis Press.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Frynas, J.G. and Mellahi, K. (2015) Global strategic management. USA: Oxford University
Press.
Grant, R.M. (2016) Contemporary strategy analysis: Text and cases edition. New Jersey: John
Wiley & Sons.
Gregory, G.D., Ngo, L.V. and Karavdic, M., 2019. Developing e-commerce marketing
capabilities and efficiencies for enhanced performance in business-to-business export
ventures. Industrial Marketing Management, 78, pp.146-157.
Haider, A.A., Zafar, A., Khalid, A., Majid, A., Abdullah, M.A. and Sarwar, M.B., 2017.
Marketing Management. Head, B, p.22.
Ho, J.K.K. (2014) Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.
Hollensen, S. (2015) Marketing management: A relationship approach. India: Pearson Education
Limited.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.

Kotler, P. (2015) Framework for marketing management. India: Pearson Education.
Kotler, P., Keller, K.L., Ang, S.H., Tan, C.T. and Leong, S.M., 2018. Marketing management:
an Asian perspective. Pearson.
Myre, M.A., 2015. An analysis of airline’s financial performance and its influencing
factors. Aarhus University School of Business and Social Sciences, Deparment of Business
Administration, Bachelor’s Thesis.
Quelch, J.A., 2017. Global marketing management: a casebook.
Rothaermel, F.T. (2015) Strategic management. UK: McGraw-Hill Education.
Scholes, K., Regner, P., Johnson, G., Whittington, R. and Angwin, D., 2014. Exploring strategy:
Text & cases. Pearson.
Shaw, S., 2016. Airline marketing and management. Routledge.
Vargas-Hernandez, J.G. and Medrano, M.D.J.M., 2020. The Circular Economy: Analysis Based
on The Theory of Resources and Capabilities. Revista Livre de Sustentabilidade e
Empreendedorismo, 5(2), pp.178-196.
Wilson, R.M. and Gilligan, C. (2012) Strategic marketing management. New York: Routledge.

Appendix 1
Appendix 1.1 Porter’s five forces description
Bargaining power of
suppliers
The suppliers are the one who provide the raw material in the
form of machinery or goods which are essential for the smooth
operations of the business.
Bargaining power of
customer
The model includes the bargaining power of the customers who
avail the services that are offered by the business.
Competitive Rivalry In the model, the competitive rivalry includes the competitors
present within the industry.
Threat of the substitutes In the industry, this has been found that the products which are
offered by the company can be substituted with other products.
Threat of New entrants The attractiveness of the industry will attract the new companies
to enter into the market.
Appendix 1.2 PESTLE analysis description
Political factors The political factors include the factors like rules and guidelines of
government that disturbs the working of the business.
Economic factors The economic factors are linked to the growth of the economy of
country which can be understood with the help of the GDP, purchasing
power, and customer spending power.
Social factors Social factor influence the working of the company which include

change in trends, patterns and lifestyle of the people to influence their
purchase decision.
Technological factors Technological factor includes change and up-gradation of the
technology that can affect company operation.
Legal factors In this framework, legal factor are considered vital for the airline
industry as they have to abide with certain rules and regulation.
Environmental
factors
There are many companies whose operations are influencing
environmental conditions which need the attention of companies so that
they can reduce the impact on the environment.