Analysing Strategic Capabilities: Ryanair

Running head: ANALYSING STRATEGIC CAPABILITIES: RYANAIR
Analysing Strategic Capabilities: Ryanair
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1ANALYSING STRATEGIC CAPABILITIES: RYANAIR
Executive summery
The report aims to examine internal factors of Irish airline in order to understand how
sustainable the company will be based on its strategic practices. Moreover, it includes
possible opportunities that the organisation can explore with the purpose of making the future
better. While VRIO analysis model is evaluating the potential of its resource, a SWOT and
TWOS analysis model try to find out the strength and weakness of the organisation as well as
based on that this report will introduce with opportunities and threat they will have to face in
a dynamic and competitive business scenario. Towards the end of this report, a strategic
recommendation has been attached which has a potential to help the organisation maintain its
balance and assures future prosperity. This article can work as a guideline to those
entrepreneurs who are looking for perspective related to changing the management for
sustainable organizational growth.

2ANALYSING STRATEGIC CAPABILITIES: RYANAIR
Table of Contents
Introduction....................................................................................................................3
VRIO analysis................................................................................................................4
Nature of Internal resources.......................................................................................4
SWOT analysis of Ryanair.............................................................................................7
Strengths.....................................................................................................................7
Weakness....................................................................................................................7
Opportunities..............................................................................................................9
Threats........................................................................................................................9
TOWS analysis.............................................................................................................10
External factors........................................................................................................11
Strategic options...........................................................................................................12
Change management theory.........................................................................................13
Strategic recommendation............................................................................................14
Sustainability............................................................................................................15
Acceptability................................................................................................................15
Feasibility.....................................................................................................................15
Conclusion....................................................................................................................16

3ANALYSING STRATEGIC CAPABILITIES: RYANAIR
Introduction
The purpose of this report is to identify the strategic capability of an airline company
originated in Dublin, Ireland, named as Ryanair, which has been practicing management
operations in airline business since 1984. This airline company has been considered under
European budget airline industry, which enables the passengers to board in exchange of less
money comparing to other airlines, although, they might include charges for food-beverages,
preferable seat allocations and baggage. People tend to confuse ‘low cost carrier’ airlines
with region based airline companies, which deal with short journeys without providing any
on air service. However, the concept of European budget airline is to offer customers low
budget deals for increasing sales as well as charges for extra services are capable of
collecting the share of profit in most of the cases. As far as the case study is concerned, it has
been observed, that being the first ever company to apply this strategy and even being the
largest successful low budget airlines, Ryanair is facing challenges while implementing
strategies under a competitive business culture. The strategies are not responsive enough
when a situation of economic recession has arrived (Sarilgan 2016).
In order to fulfil the agenda, this report aims to analyse internal strategic capabilities
and probable limitations due to lack of organisational potential, with the help of VRIO
analysis model. A SWOT analysis will present an internal evaluation of certain factors of the
airline company and again TOWS analysis will assist to understand the company potential to
implement strategies for benefit and its position in the market. A model of change
management will be included to describe how Ryanair has been maintaining a continuous
process of innovation and revising values, strategies and objectives in order to cope with the
transformable business scenario. According to Albers et al. (2017), considering the