Ryanair Expansion Strategy in Greece

The assignment examines Ryanairlines' potential expansion into Greece. It investigates opportunities within the Greek market and analyzes the impact of environmental and competitive factors on their success. The report aims to provide a comprehensive understanding of the feasibility and potential challenges of Ryanairlines expanding its operations in Greece.

BUSINESS ORGANIZATIONS

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................4
1.1Information of the Ryanair.................................................................................................................4
1.2 Discussion of the allocated business environment............................................................................4
1.3 Application of Analytical Approach....................................................................................................7
1.4 Use and Application of Data..............................................................................................................8
CONCLUSION...............................................................................................................................................9
REFERENCES................................................................................................................................................9

INTRODUCTION
The arrangement of internal and external environment which can influences the business
activities is known as business environment. There are many factor which directly or indirectly
impact the business. The present report is based on Ryanair airline company which expanded its
business in different country. It also provide low cost services to its customer and it give tough
competition to its other competitor. In the present report PESTLE analysis is conducted which
help in identifying the factor impact the organization. along with this factors an issues which
company face at the time of operating its business in new country is also highlighted
MAIN BODY
1.1Information of the Ryanair
Ryanair Ltd. is an Irish airlines which headquarter is situated in Swords, It is one of the
low cost airline which expand its business in different country. It is characterised due ot
its rapid expansion which result in deregulation of industry. Since in past year it had a
total off 450 employees who had share in the company. Rayanair relation with its

employees is that there was agreement that staff cannot join union on the basis of that
they would have influence on the way company run. It also focus on making good
relation with employee so that company productivity can be improved and it can earn
profit. Apart from this, Ryanair has been criticised for many reason of its customer
services. Ryanair continuously come under criticism because it poorly treated disabled
passengers. For example, in 2002 it refuse to give wheelchairs for passenger who are not
physically fit at London Stansted Airport. Along with this it not offer it customers the
way to make confirmation of their air ticket through email, only through a premium rate
phone line or fax. Due to come under many criticised it started focusing on improving
the relation with customer. Further it use advertising for making direct comparison and
attack their competitor. It have many low cost competitor which give tough competition
to Ryanair. Its largest base is in London and it operates from more than 82 base
connecting 32 countries across North Africa and Europe. Ryanair want to expand its
business in Greece which is very beneficial for the organization. Airline company always
focus on different factor which can impact its business at the time of starting or
expanding its business. Further it also analyse its competitor in new market then make
strategy for giving tough competition to its competitor.
1.2 Discussion of the allocated business environment
PESTLE analysis help in identifying the Greece environment which help Ryaainr airline
company for expanding its business at Greece. This all factor help Ryanairr company in
expanding its business and in increasing the profitability. All the factor of PESTLE is discussed
below
 Political factor: Greece is known as country where there are many political factor which
can impact the business operation of Ryanair. Further Greece is also a member of
European Union which can become one of the benefit for the Ryanair. Along with this
there are some political factor which can impact the profitability of Ryanair. Such as high
tax rate charged by government can negatively impact the profit. If government kept low
tax rate then expansion in Greece help Ryanair in successfully carrying out all its
business activities. Hence political factor play crucial role and also impact the business
directly (Bouranta, Bouranta and Pantouvakis, 2017). At the time of operating its

business in Greece Ryanair need to face some political rules and regulation and adopt its
strictly so that it can carry out its business in effective manner (Fragoudaki and Giokas,
2016).
 Economic factor: Economic factor are those factor which impact the Ryanair in certain
ways. There are many economic factor which impact the Ryanair and its sale. At the time
of recession airline company can suffer from loss because employee spending power get
lower (Androulaki, Georgoudi and Papageorgiou, 2017). So airline company need to
take many steps to overcome this problem. Further their is increase in unemployment rate
can also impact the business because customer avoid travelling because they not have
enough money to spend on travelling. Like this, their are many factor which impact the
business of the Ryanair. There are many other factor which can impact the profitability,
so before expanding business in GREECE airline company need to identify the economic
factor which can impact the business. Apart from this their are some financial crisis
which are faced by the Greece so government take some action for resoling this issues. It
increase the interest rate which impact many business who are operating business in their
country. Ryanair also need to make sure that interest rate is not high at present before
expanding its business in Greece.
 Social factor: In modern era with the changes of time needs and wants of customer also
changes which can impact the Ryanair. Before expanding its business company need to
conduct research to identify the needs and wants of its customer (Androulaki, Georgoudi
and Papageorgiou, 2017). At thee time of offering services company need to focus on the
way it can increase the satisfaction level of its customer. Along with this if company
focus on providing best services to its customer then it can attract the large number of
customer. it help in expanding its business and earn profitability. Ryanair also need to
make changes in its services according to customer taste and preference which help in
expanding business in effective manner (Baumann, Hoadley and Nugraha, 2017).
 Technological factor: Technology play crucial role in the success of business. Use of
advance technology help in expanding its business. At Greece their are different
technology which are introduce in market. This all advance technology help company in
expanding its business (Papadopoulos, 2016.). With the use of new technology Ryanair
can easily expand increase the productivity and customer satisfaction level. Along with

this it also help expanding business successfully in new country. This new technology
also help in reducing the cost of production and in increasing the sale.
 Legal factor: Legal factor can impact the Ryanair. Michaelakis, Papachristos and Avtzis,
2016At Greece government made many laws and legislation which every company need
to follow at the time of operating its business in new country. Some of the rules and
regulation such as health and safety of employee etc. which company need to implement
within the Ryanair.
 Environmental factor: At Greece there are many safety measure taken by government
for keeping environment safe and polluted free. For expanding business in Greece ,
Ryanair need to take make sure that its any business activities. Further it also need to
recycle the wastage so that environment not get polluted (Nitsch, Andreou and Petridou,
2017). If company focus on making environmental friendly product or keep its
surrounding environment neat and Clean then it can easily achieve success, it help in
making good image of Brand in market which help in gaining shares.
Hence it show that at the time of expanding business in Greece company need to know the
impact of above discussed factor (Androulaki, Georgoudi and Papageorgiou, 2017). Along with
this it also need to control the negative impact of factor so that it can successfully expand its
business.
1.3 Application of Analytical Approach
To gain a in depth knowledge of Ryanair and its environment, mangers does not have to
waste time in gathering all the information from different sources rather what they should do is
they should think strategically. By thinking strategically managers should use the concepts and
analytical tools in order to make sure that wherever they are planning to move, that place have
the potential to give them back or not(Kamukama, 2013). A powerful tool for understanding firms
competitive environment and knowing the strength is Porter's five force Model of competition.
This model suggest the competition prevailing in an industry with relation to its completive
pressures operating in five areas that are:
1. Threat of New Entrants: New entrants in the industry have always been a mjor source of
threat. Bigger and powerful the new entrant is, more damage he can do the image of the
Ryanair. By bringing new technology and capabilities they can make a difference so in

order to avoid that Ryanair needs to update its systems with new technologies and
practices as per the time(Uhlig and et.al, 2014). Since Ryanair have dealt with Boeing and
Airbus For reduced prices it has low threat from the new entrants because any new
entrant will not have this type of relationship with others.
2. Threat of Substitutes: Substitute products offer a price advantage and performance
improvement to consumers which can change the course of the firm in an industry.
Customers are always been the influential factor for businesses and thus in order to
compete firms are always doing something to build a good customer base by providing
substitute products of the brand that is mostly used(Ungson and Wong, 2014). Ryanair
being in the airline industry its main substitutes are Euro lines which offers less than
Ryanair but being not so comfortable it is not giving a tough competition to Ryanair.
3. Bargaining Power of Buyers: Customer satisfaction with Ryanair has been recorded as
low which can be a major threat to its brand loyalty and will make an impact in future.
But on the other hand if we talk about Bargaining power of buyers, it is high due to the
model of Ryanair which is low cost airlines. A significant increase have been seen in the
profits even in the recession periods for Ryanair. Being a low cost airlines people are
preferring Ryanair over local transports like trains, ferries, etc.
4. Bargaining Power of suppliers: Bargaining power of suppliers includes the cost of raw
materials and other inputs of the industry. Since Ryanair is in aviation industry
bargaining power of supplier is very high for the firms who produce planes in the market
for Ryanair which is Boeing and Airbus(Ahlstrom and et.al, 2014). Despite this high
bargaining power Ryanair have been safeguarded in making payment of premium prices
for Boeing 737 because Ryanair is Boeings fastest growing customer which have gained
20% market share of European union and there are more reasons why Ryanair have not
been affected by the Boeings high bargaining power.
5. Rivalry among Current Players: This can be easily understood since in every industry
there is always been some rivalry among the existing firms due to the above discussed
four factors. The competitors influence prices and the cost of competing in the industry as
well. But Ryanair's model has helped him to reduce competition in various ways:
Experiencing the sudden growth in EU market have reduced threat of entry, reduce price
of average fair, planning for future have made them Top airline.

1.4 Use and Application of Data
Business expansion requires a strategic planning. For many firms expanding is
important to achieve a reputation among its customers and competitors, as well as to be
successful it is needed. Since Ryanair is planning to move its operations in Greece, it is crucial
for Ryanair to understand the various factors which can impact the growth of business
there(Vance and Paik, 2015). Every territory is different from other and has lot to offer too but can
also have the capability of taking it from a firm. So in order to be successful with its expansion
plan Ryanair needs to undertake these factors:
1. Research Legal Issues: In order to be successful in new markets Ryanair needs to make
a research of what restrictions or limitations are there regarding trade. Also as Ryanair is
expanding to Greece the firm need to take care of environment as well there because no
pollution is allowed there(Uhlig and et.al, 2014). After finding out the possible trade
barriers they need to make sure that those trade barriers doesn't affect their business
model and accordingly make strategies.
2. Investigate Markets: Second thing Ryanair needs to do is Examine the markets what
potential markets possess and how growth can be achieved in Greece(Reim, Parida and
Örtqvist, 2015). Having a complete scanning of market should be here from the Ryanair's
part because expanding is not a small project lots of funds have been invested in it and
one wrong decision can make big blunders for Ryanair.
3. Internal Financing: Since Expansion is not a small project to undertake from money
point of view and operations point of view as well. It is important for Ryanair too have a
look at internal ability of the firm to tackle this project. Is there any issue regarding
current operations of the business, those things should not be affected in order to make
decision of expanding.
4. Assuring Cultural Fit: While moving to Greece, Ryanair needs to focus on the cultural
fit of the country. Since it is not much of difference in cultures Dublin and Greece
because both countries are of UK. But still people in Greece will have different taste and
preferences as compared to other countries so Ryanair should maintain that cultural fit in
order to be successful in Greece(Uhlig and et.al, 2014).

5. Be adaptive & Competitive: Since this is a big decision, Ryanair should be flexible
enough to a handle every situation they are going to deal with. The firm needs to be
adaptive in every circumstances whether positive or negative. Expanding means new
markets, new customers, new competitors and new strategies. So Ryanair needs to have a
attitude of competition in order to give other firms of industry a good competition.
CONCLUSION
From this report it has been concluded that, Growing a business is a huge task for the
companies since they have to undergo various calculations to make sure that the place they are
expanding to have the N number of opportunities for their business. In order to Expand the
airlines business of Ryanairlines in this report it has been examined that what are the
opportunities that Ryanairlines can have in Greece and how it can be achieved. Furthermore a
study of environmental factors and competitive factors have been undertaken to understand what
impact they have on Ryanairlines in expanding to Greece.
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