Strategic Analysis of Ryanair: Competitive Advantage and Change

This report provides a comprehensive analysis of Ryanair's strategic change management. It begins with an introduction to strategy, change, and management principles, highlighting the airline's business model as a low-cost carrier. The main body delves into the external environment using a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors affecting Ryanair's operations. Furthermore, the report employs Porter's Five Forces framework to assess the competitive landscape, including industry competition, the threat of new entrants, supplier power, customer power, and the threat of substitutes. The report also explores Ryanair's strategic change management process, referencing the Kotter change management model to illustrate how the company adapts to market forces and internal challenges. Finally, the report concludes with strategic recommendations for Ryanair to enhance its performance in the market, addressing areas such as technology investment, customer service, and environmental sustainability.

Strategy and Change
Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Extremal environment of the company........................................................................................2
Understanding the competitive advantage of the organisation....................................................3
Strategic Change management process of the company..............................................................5
Appropriate Recommendations...................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategy change and management is a plan which helps the company to make something
different fro the consumers. They can revolutionise the market with the particular product or
service. There are multiple ways through which the organisation can perform better in the market
(Wu, and et.al 2020). The report aims to analyse about understanding the strategic direction of
the firm. Ryan air is low cost carrier which provide flight experience to the customers at an
affordable rate. The company is headquartered in swords, Dublin, Ireland. It is the largest airline
company which provide budget flights to the passengers. On the other hand, in this report the
main focus is to evaluate the competitive advantage of the company. Along with that, in this
report there will be evaluation about the organisation change management process and external
environmental factor which is affecting their performance. For further instance, there are
strategic recommendation which will improve the company performance in the market.
MAIN BODY
The organisation can make different strategic decisions which could help them to become
better in the market. The main focus is to identify different forces which is affecting their overall
performance( Warman, and et.al 2022). The UK travel industry has seen an efficient growth over
a period time. There are multiple companies which has managed to attract different consumers
in the market. The main essence to attract different consumers is to provide the best quality
products and services. With the changing market scenario there is uncertainty in the Tourism
industry. The company has to evaluate new strategies and approaches which will help them to
become better in the industry. After the impact of Covid 19 pandemic the tourism industry has
seen a decline of the customers over a period of time. The virus has impacted the business of
multiple hotel chains and flight services in a negative manner. Ryan air has seen an effective
growth in the market by capitalising on different factors which helps them to become more
competitive in the market.
In the Tourism industry there are new technology which is used to provide better services
to the customers. Ryan air needs to analyse the new regulating forces in the market. The
organisation needs to make the flight services more engaging and luxurious which will help them
to incur more profits in the industry. There are multiple forces which needs to be evaluated in a
proper manner. In the aviation industry Ryan is known for providing the flight services at and
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effective rates. This helps them to become more competitive in terms of other brands which are
present in the market. The company is still struggling after the impact of Covid 19 and the
management is changing and transforming to carry out the operations in new ways. By observing
the customer needs they can implement the change in the structure or the workplace to improvise
the productivity and enhance the overall knowledge of the employees.
Extremal environment of the company
Pestle Analysis – This is one of the most essential framework which is used by the
companies to identify different forces which are regulating the business operations of the firm.
Pestle Analysis in relation to Ryan air is described below:
 Political factor – This is the factor which could affect the company performance in a
continuos manner. There are multiple aspects which is included in this factors. For
example, taxation and other fiscal policies etc. Ryan air has commence their operations in
different regions (Zeemering, 2018). In the UK there are certain rules which has hit the
company's operations in a negative manner. Most crucial effect is after the Covid 19
pandemic there are travel restrictions which has been the major source for declining of
the customers. Ryan air has extensive drop in the profits.
 Economic factor – There are multiple economic factors which is been affecting the
company growth and brand image in the industry. These factor includes Interest rates,
employment rates etc. Ryan Air has been continuously affected by their market drop. The
impact has of Covid 19 has devastated the company growth and prospectus. The
management is making new plans to emerge as the new giants in the industry by
resuming the flight services after the pandemic.
 Social factor – This is the third factor in this framework which includes the lifestyle
trends, consumer perspective etc. Ryan Air is attracting different customers which want
to indulge in the flight experience at affordable rates. The organisation is highly affected
by the concern of safety of passengers. They are using the new technology and making
the changes in the aircraft which helps them to improve different aspects in the airlines.
Ryan air is also providing better services to the customers which helps them to maintain
a suitable position in the market.
 Technological factor – The organisation needs to heavily invest in the technology which
helps them to gain a competitive advantage in the market. Despite the losses Ryan air
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always ensure that they using the technology to provide the better flight experience to the
customers. In today's time the customer demand the security from the companies and the
services needs to be excellent (Van Assche, and et.al 2020). There are great results which
is achieved by the firm while investing in the technology. With the help of technology
Ryan Air can check the safety of their flights and provide best services to the customers.
 Legal factor – There are different legal factors which is abide by the government and the
company needs to fulfil it in an effective manner. It includes factors like industry
regulations, licenses, employment and consumer protection laws. Ryan Air has faced
different problems due to the legal restrictions. There are different interruptions which
they faced in different regions in the market.
 Environmental factor - This is one of the major addition in the Pestle framework. The
company needs to optimise their business operations in order to preserve the
environment. Ryan Air is solely responsible for the carbon emissions in the environment.
The management needs to fulfil the concern in which they preserve the environment in an
effective manner.
Understanding the competitive advantage of the organisation
Porter Five forces framework could be used in order to understanding the company's
competitive scenario in the industry. This can be used as the tool to identify the new factors in
the market and understanding the situation (Meshko, and Savinova, 2020). It was developed by
Michael E Porter. The main focus is formulate new strategies to achieve a growth at the rapid
pace in the market. Porter Five forces framework in relation to Ryan Air is described below:
 Competition in the industry – This is the first phase in which the company evaluate
how the competitors is affecting their performance in the market. The organisation needs
to provide better products and services in order to gain a competitive advantage. Ryan air
has been providing better services to the customers to incur more profits in the market.
The competitive rivalry in the industry is certainly high. Ryan Air has been facing high
competition from different competitors (Storvang, and Nguyen, 2020). The competitors
includes Wizz air, easy Jet etc. In order to become more competitive Ryan Air is
providing the services at cheap rates to become more competitive.
 Potential of new entrants into the industry – The organisation needs to attain continuos
improvements which helps them to minimise the threats of new entrants in the industry.
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In the aviation industry the threat of new entrants is certainly low. There is a huge
investment which is been required by the companies to enter in the market. Ryan air is
doing continuos improvements which will help them to provide better services in the
market,. They are also making the employees more skilled this will carry out the
operations smoothly. They had managed to achieve positive brand image in the industry
by formulating different strategies and approaches.
 Power of suppliers – The organisation needs to build a healthy relationship with the
suppliers. Through this they are able to buy the raw materials from which they can make
the finished products. The bargaining power of the suppliers is certainly high in the
aviation industry (Lazar, 2018). There are only two manufactures which provide the
planes to the companies. It includes aircraft like Boing and Airbus. Ryan air purchases
the Boeing aircraft which comes at a huge cost. The organisation is been giving the
standard rates to the companies while buying the aircraft. There are different variations
which needs be fulfilled by the firm in an effective manner to manage the working
operations.
 Power of customers – The organisation needs to improve their services which will help
them to attract different customers. In the aviation industry there are many companies
which is providing the flight services at low fares. In relation to Ryan Air they are
providing the services at low costs. On the other hand, the company is also ensuring that
they are giving the best experience to the customers by offering better services. This is
the main advantage on which the company is capitalising in a systematic manner. The
company also need to respect the decision of the company which will help them to abide
the positive brand image in the mindset of customers.
 Threat of substitute products – In the aviation industry there are certain substitutes
which includes bus, train etc. The customers can travel with them in different routes. In
the long routes they take time which is not effective for the individual. The threat of
substitutes is certainly low in the aviation industry. Ryan Air tackles the problem they are
providing the services at low fares. This will help them to attract different consumers in
the market in an efficient manner (Fleckenstein, and Fellows, 2018). The company also
encourages the individual to use the flight services. They provide additional discounts
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which will help them to achieve great results for the future. There are continuos
developments which will help the company to move further in the market.
Strategic Change management process of the company
The change management process consider different changes for the form which will
regulate their performance at higher level. The main focus of the firm is to adapt to the new
forces and identify different challenges which is affecting the performance in the market. In
relation to Ryan Air the company as implemented a new change in workplace which will
optimise their performance in a positive manner (Coller, Frigotto, and Costa, 2018). With the
applicability of Kotter change management model there are different changes which Ryan Air
has been implemented in an effective manner. The company has establishes a new structure in
the workplace which will help them to carry out the operations strategically by utilising the
resources at an increased rate. They are using the technology which will help them to become
better in every manner. Through this Ryan air has created a major source to expand the business
in different regions. On the other hand, the leaders of Ryan Air has improved their ideology
about the aviation industry in which the main focus is to achieve different objectives which is set
by the management (Correani, and et.al 2020). The employees and the management work in a
coordinated manner in order to achieve the vision and goals. Ryan air is been complying with the
new policies and regulations while diversifying their operations in multiple regions. The new
change which they have established is to make the workforce more skilled to provide better
services to the consumers. The leaders of Ryan air provide excellent training programs which
helps the staff to grow their overall skills and capabilities.
The main focus is to become more efficient in the working standards by adapting to the
new technology and achieve better results for the future. There are new opportunities which has
arise in front of Ryan company due to providing better services. The main component in which
they were lacking technology now they use it to get better results in the market. The leaders also
motivate the employees to become more comfortable with the new change. This helps them the
firm to enhance their business operations with the new marketing conditions. Ryan air is
collaborating with new investors in order to achieve a successful business growth in multiple
regions (Borowski, 2021). They are providing the regulatory services which helps them to attract
different individuals in the market. There are new variations which has opened the scope of
growth for the company. There is another major impact in the company's prospective which is
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effective leaderships . The leaders shows path to the individuals which helps them to achieve and
efficient growth for the future. There are new innervations which has consolidated the
organisation to grow more in multiple manner. On the other hand, the leaders needs to enrich
their vision with new strategies in order to improve the efficiency of the workplace. They can
also focus on providing the regulatory path to the staff in which they can solve different
problems and get great results for the company. The change management process will also help
them to become in solving complex problems and improve the stability of company.
Appropriate Recommendations
After evaluating all the aspects the company can majorly improve in different factors.
This will further help them to become more profitable in the market (Albukhitan, 2020).
Strategic recommendations in relation to Ryan Air is described below:
 Ryan Air can fulfil different rules and regulation which will help them to expand their
business in different regions. This will certainly help them to provide better services to
the customers (Anwar, Bibi, and Ahmad, 2021). They can make the positive brand
integrity in the market. Moreover, the management needs to evaluate different strategies
which will help them to grow their business in the future and carry out the operations in a
strategic manner. With the changing market conditions the company can use the new
technological tools to improve the factors in which they are lacking. They can optimise
their overall performance for successful growth in the market.
 Ryan Air can heavily invest in the technology to get better results. The company can use
the key performance indicators to see their effective growth in the market. On the other
hand, they need to ensure that they are transforming the company in various digital ways
which will helps them to provide the essential services at a rapid pace. The management
of Ryan also needs to provide the luxury services to specified individual. This will help
them to generate more revenues (Bhattacharya, and Momaya, 2021). This will also
enhance the name as the company which provide better luxury services to the customers.
 Ryan Air needs to work tirelessly to collaborate with new investors which can improve
the company's portfolio in the industry. They need to find different strategic partners
which can lead them to achieve a sustainable performance. The organisation is
committing using the resources and utilise them in an efficient manner. They can
preserve the environment by reducing the carbon emissions. In the next five years the
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company will able to dominate the market. There needs to be proper relationship while
indulging in the new ventures.
 Another strategic recommendations which the company could implement in the
workplace. They could make the employees more skilled which will improve the
productivity of the workplace. The leaders can introduce the new learning programs
which will maximise the efforts of the employees. Ryan Air can also provide the path to
the employees which will help them to grow their overall skills and capabilities.
 Ryan air also needs to follow different rules about the customer safety. They need to
make a positive brand image in the market. There are different measures which can be
taken by the company (Ahmad, 2019). They need to comply with the rules which is made
after the Covid to follow the safety of the individuals. They need to check the aircraft
with the help of technology and needs to ensure that these are perfectly safe for the
passengers. There are better results which can be achieved by them in the market.
CONCLUSION
From the above report, it has been concluded that the organisation can perform better in
the industry by utilising the resources at an efficient rate. There are multiple approaches which
can be used by the firm in order to gain a competitive advantage and provide better services to
the customers. On the other hand, in this report there is discussion about the new economic
trends which is regulating in the industry and this can affect their business operations. The main
focus of this report is about the strategic framework which includes Pestle analysis. It helps the
organisation to identify different forces which could affect their performance in a negative
manner. Along with that, there is evaluation about porter five forces which could help the
company to regenerate more revenues by understanding the new and changing market
conditions. There is a better supply chain management system which they can use in order to
identify the customer needs and wants. For further instance, in this report the main focus is to
analyse the strategic change which the organisation has implemented in order to manage the
working operations systematically.
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REFERENCES
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