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Strategic Management Assignment Solved - Ryanair

   

Added on  2020-11-12

8 Pages2496 Words487 Views
Leadership Management
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RayanAir: the low fares airline
Strategic Management Assignment Solved - Ryanair_1

Table of ContentsIntroduction.................................................................................................................................................3MAIN BODY..............................................................................................................................................3External audit of organization by using Porter’s five Force model..........................................................3Internal strategic capability using SWOT model.....................................................................................5Critical evaluation of Strategy.................................................................................................................6CONCLUSION.......................................................................................................................................6REFRENCES..............................................................................................................................................8
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IntroductionStrategic management is concerned with constructing goals and objectives and implementing them. Top management is involved in analyzing the resources along with evaluation the external and internal business environment in which organization exists (Chiarini & Vagnoni, 2015). Its main purpose is to increase the business growth by integrating the internal resources with the company’s goals. This also helps managers in decision making for the purpose of improving the position of the business through the adoption of effective strategies and providing competitive advantage in the market. The company which has been selected in the following report is named Ryanair a well-known Europe airline. It is considered as the largest airlines in Europe This was founded in the year 1984 and its main headquarters is in Dublin airport, Ireland. Reportcovers detailed description about the environmental audit of an organization, discussion on wide range of strategic choices and last is potential strategies, their suitability, acceptability, feasibility with in the organizational context. These are important to study in order to understand the impact of internal and external factors on the business. MAIN BODYAs a strategic manager it is essential to first analyze the external and internal factors affecting the business of Ryanair before discussing about the strategic choices available to the organization (Zott & Amit, 2013).External audit of organization by using Porter’s five Force model This framework is created by M. porter to analyze the attractiveness of industry based on five main forceswhich explains the level of competition in the market and whether it will be profitable for the organization or not. Wizzair, vueling and Pegasus airlines are the three main competitors of Ryanair an analysis is made with the help of porter’s five force model. Threat of new entry- This force explains that threat of new entry should be low as it is beneficialfor the organization to have low competitors in the market. There is various reason for this factor to become high such as low capital requirement, existing business entities not being competitive enough or low government interference etc. Ryanair industry has created high barriers due to its strong brand image and expensiveness hence threat of new entry is not high in this scenario.Bargaining power of suppliers- This determines the power held by the suppliers in the market, if it is high then suppliers can charge high prices for the low quality raw materials. In case of Ryanair since the prices of oil are ruled by the government institution therefore it leads to high bargaining power of suppliers.Competitive rivalry- It explains to what extent rivalry exist in the industry. There is an intense competition for the Ryanair from various low cost airlines such as Wizzair, vueling, Pegasus but due its vast size the company has managed to reduce the rivalry in the market.Bargaining powers of buyers- This refers to power held by buyers based on their demand with regards to the prices of goods and services. Bargaining power is higher in this industry as customers will switch to other airlines in case the company increases the prices. Such industries are considered less attractive where customers rule and changes can not be made in prices.Threat of substitute- In an industry where customers have other options to switch to, reduces theprofitability of business. As Ryanair is providing much cheaper rates than other transport mediums like
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