Strategic Management Assignment - Ryan-airlines company

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body ..................................................................................................................................3
1.Background information of the company................................................................................3
2.External analysis of the Airline industry .................................................................................4
3.Brief competitor analysis-........................................................................................................5
4.Internal strategic capabilities....................................................................................................6
5.Strategic direction option.........................................................................................................7
6.Strategy selection and justification .........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Strategic management refers to the process of controlling, monitoring and assessment of
all that is important for an organization in the accomplishment of business goal and objective.
Strategic management also involved bundle of decision and acts which a manager undertakes
and also it decides the performance of the firm(Ansoff and et.al., 2019). Report will high lights
the external analysis of the Ryan-airlines industry and also evaluates the internal environment of
the company. Ryan-air is recognized as a first and largest budget airline industry of the Europe.
It was founded in 1985 by the Ryan family. In this report we will also discuss the strategic
direction tools for evaluating the Ryan-airlines strategic choices and its future directions.
Main body
1.Background information of the company
Ryan-airlines is the first largest budget industry of the Europe and it was established in
1985 by the Ryan family for providing the scheduled passenger service between Ireland and UK.
At the initial level it was full of service carrier with two class of seating, leasing three different
type of aircraft. Ryan develop its self as Europe's favourite airline and as the worlds the largest
international carrier by passengers. Ryan use key aspects of various strategy for increasing the
productivity of the firm. It uses fair and route policies strategy to stimulate demand. It also
includes the low operating cost which is the heart of the Ryan-airlines strategy. This strategy can
effectively implement in the Ryan-air through Aircraft costs which can be down through
purchasing the aircraft from a single manufactures and it also reduces the airport costs for
maintaining the low operating cost(Strategic management, 2019). It includes the productivity of
the firm through providing various productivity based incentives to its employees. Ryan-air's is
considered as the successful company and the prime market leaser in the European world and it
heavily relays on the leadership of Michael O' Leary but at present the business strategy are

focus on the cost leadership and its cost leadership is not sustaining for the future growth. It
needs to maintain better link and healthy relation with unions in the future.
2.External analysis of the Airline industry
External analysis of Ryan-airlines industry can be effectively done through the pestle
analysis which includes the various factors such as political, social, technological, environmental
and legal factors.
P-political factor
Ryan-airlines is operating in Europe the stability of flight routes and destination my
guaranteed. The political institution such Eu affects the airline's industry by establishing various
rules and regulation or restriction like establishing EU competition law. The airlines also affect
sue to the Terrorist attacks last year in the Paris but it is just an assumptions and has no evidence.
E-economical
As already includes the case study that Ryan-airlines is operating in the Europe and earn
profits from a stable economy and the economic down turn did not change the low price strategy
of Ryan-airlines. It still provides the cheapest flights and noticing high customer demand for low
fares at its hard times. The exchange rate is also threat for the Ryan-air industry.
S-social factor
The customer is the main part of the every successful business and keeps it in existence.
According to the various type of Ryan-air's customer, different social factor create. Business
travellers are more service oriented and the leisure travellers more price oriented. The Ryan
provides the services to everybody in Europe avoiding distinguishing between
customers(Sammut‐Bonnici & Galea, 2015).
T-technological
Technological advancement also affect the business of the company because new
technological changes costly investments in the new air-planes and along with Ryan has to deal
with recycling, pollution and noise of the aircraft.
L-legal factor
Legal factor affect the airline's industry at very large extent because Ryan-air is subjected
to lawsuit by the European government for receiving state aid at certain airports of the Europe.
The Brexit may require Ryan-air to comply with the UK and EU regulations.