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Strategic Management in Ryanair - Background Information

   

Added on  2020-12-26

11 Pages3500 Words114 Views
STRATEGICMANAGEMENT

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Ryanair – Background Information............................................................................................1External: Airline Industry Analysis............................................................................................1Brief Competitor Analysis..........................................................................................................3Internal: Strategic Capabilities....................................................................................................4Strategic Directions Options.......................................................................................................5Strategy Selection and Justification............................................................................................6Conclusion & Recommendations....................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONStrategic management refers to the process of continuous planning, analysing, monitoringand assessing of all the necessary factors that are required by business organisation to meet theoverall goals and objectives. The strategic directions of company helps in accomplishing thelong-term goals and objectives. Ryanair DAC is an Irish low cost airline that was founded in theyear 1984. in the present report, detail background information is provided on the low costairline industry- Ryanair. The report includes internal analysis, external analysis and competitiveanalysis of Ryanair airline industry. Strategic direction tools are used for evaluating the Ryanair'sstrategic choices and future strategic directions. The report further provides the justification andrecommendation for the strategic direction and management.MAIN BODYRyanair – Background InformationThe airline industry Ryanair is a low cost airline industry that was founded in 1984. theheadquarter of Ryanair is situated in Swords, Dublin, Ireland. The are various operating baseslist of the company. Ryanair company operates approx 400 Boeing 737-800 air-crafts and withsingle 737-700 are primarily used as charted air-craft. The Ryanair airline industry is one of thelargest airline of Europe in terms of number of passengers, Upadhaya & et.al., (2018). Thebusiness strategy of this industry focuses on operating business by providing low cost fares thangenerating increased passenger traffic. The company has approx 1000 route network that servesaround 37 countries such as in North America, Morocco, Israel, Jordan, Europe and many more.The strategy of company focuses on low cost and no frills airline.External: Airline Industry AnalysisThe external analysis of Ryanair airline is done by using PESTLE framework. ThePESTLE analysis is a strategic tool that helps in effectively analysing the macro businessenvironment that can affect the business organisation. Changes and influences in macroenvironmental factors brings direct impact on the Ryanair airline industry which is brieflyexplained as follows:Political factors: It includes rules and regulations that governs the air traffic between UKand other EU countries. Ryanair is a low cost airline company that has limited air routes anddestinations. The political regulations of a country and its relationship with other countries may1

lead to bring great influences on the Ryanair. The political factors that can greatly influence andaffect the Ryanair are: legal regulations regarding contract enforcement, political stability ofcountry, trade and tariff regulations, risk of invasion of military and industrial safety frameworksin service industry, Tran (2019).Economic factors: Ryanair can get influence due to economic situation of the countrysuch as inflation rate, economic cycle and operation country's economic system. The interventionof government in free market, skill and education level of country's workforce, interest rate,labour cost and economic productivity and regional airlines industry's infrastructure quality canalso lead to bring great impacts on the company.Social factors: This includes demographical factors of business that may lead to bringgreat influences on the culture of organisation. Beliefs and attitudes of people of operationalcountry can bring influences on the Ryanair airline, Křupka, Kantorová & Haile (2018). ForExample, Millennials chooses the airline industry that provides quality services at premium raterather than that airline that provides affordable prices. The broader nature and attitudes ofsociety, leisure interest, education level and culture can lead to bring great impacts on thebusiness activities of Ryanair airlines.Technological Factors: The airline industry needs to cope with the technologicalchanges happening in the environment in order to sustain in the competitive markets.Technological changes are important to be considered and it includes changes in value chainstructure, changes in product offering techniques, increasing use of mobile and internet. Theincreased reliance on factors of technology will lead to provide effective benefits for Ryanairairlines. Environmental factors: Changes in weather and climate can lead to bring greatinfluences on the airlines industry and their network routes. Ryanair industry can get influencedand impacted through changes in its environmental factors such as waste management of servicesector, recycling laws, regulations for environment pollution and attitude towards ecological andgreen products. Legal factors: Every industry gets impacted through legal factors of country as itprovides legal and regulations that needs to be followed. The Ryanair can get influenced due tolaws relating to intellectual property rights, laws of consumer protection, discrimination law,data protection and health and safety regulations. 2

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