Strategic Management Ryanair
Added on 2020-11-12
13 Pages3095 Words279 Views
STRATEGICMANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11.Background information of Ryanair....................................................................................12.External analysis of Ryanair................................................................................................13. Competitor analysis............................................................................................................34. Internal: strategic capabilities.............................................................................................55. Strategic direction options..................................................................................................66. Strategy selection and justification.....................................................................................8CONCLUSION AND FUTURE RECOMMENDATION..............................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONStrategic management is a process of planning, organizing, analysing and monitoring allthe activities of the organisation that is needed to achieve organisation goals and targets. It is alsoan ability to set the goals for short term as well as long term. Present study is based on Ryanaircompany. It is an Irish low cost airlines established in 1985. its headquarter in Europe(Barrett,2016). The report will include the background of the Ryanair. It defines the PESTLE analysisand porter's 5 force analysis of the company. Report will also highlight the strategic directiontool which evaluates the Ryanair's strategic choices and future strategic directions. MAIN BODY1.Background information of RyanairRyanair is an Irish low cost airlines which is founded in 1984. Its headquarter in Dublinairport, Ireland. It operates 400 plus Boeing 737-800 aircraft with revenue of £7.151 billion in2018. It holds more than 13000 employees with the net income of £1.145 billion. It was thelargest European budget airline which carries international passengers more than other airlines in2016. The parent company of Ryanair is Ryanair holding plc. Ryanair's main business strategy isimplemented its low cost business model and rapid expansion. It offers low cost fares to itspassengers that enhance their number of passengers. Its main attractive strategy is provided thelowest fare with increasing routes in UK(Ahmed & et.al.,2019).2.External analysis of RyanairPESTLE analysisPolitical factor: it impacts greatly to the airlines' industry. Ryanair have to considerpolitical system in their airlines. There are some major political factors that affectRyanair such as uncertainty over Brexit and frequent terrorist attacks in Europe. Theuncertainty over Brexit is majorly affected the overall environment of the Ryanair. Economical factor: there is major economical factor that effect Ryanair. One of this is ataxation policies of the government. The taxation policies are unfavourable for thecompany because it impacts the revenue of the company. Further, the increasing fuelrates is also influenced the profit of the Ryanair(Graham,2016).1
Social factor: this is also impacted the Ryanair because consumers preferences arechanged with high speed that effects organisations strategies. In present the consumersare willing to spend more for the lower cost airlines that attract customer towards theRyanair because Ryanair is provided low cost fare.Technology factor: it impacts greatly on the Ryanair. Ryanair uses the latesttechnologies in their business operation that reduces pollution as well as cuts down theunnecessary luxuries supplier. With the use of technology, Ryanair provides so manyfacilities to their customers like online booking and make website for customers servicesthat attract existing customers as well as create new customers(Caputo & Borbely,2016).Legal factor: it is also widely influence the airlines' industry because as an airlines'industry, Ryanair have to face lots of government interference in their businessoperations. For example, Ryanair have to face Ireland's government interference in themerger with Aer Lingus because the government believes that is not in favour of theIreland's people.Environment factor: the Ryanair produces eco-friendly products that is not harmful forthe environment. It has the lowest emissions' intensity among the peers. They also takeinitiatives for the environment.Porter's five force analysiscompetitive rivalry: The competitive rivalry of Ryanair is high because there are number of airlines that useslow cost fare and the similar route to Ryanair. There are so many competitors such as Go, Easyjet, Wizz Air and many more. But still Ryanair able to drive out of their competitors because oflarge fleet size and experience(Schuetz, Mair & Schrefl,2018).Threat of new entrants:The threat of new entrants in airline industry is very low because it is an expensiveindustry. There are so many entry barriers in airline industry such as getting slots at airport iscostly for new airlines, purchasing of jet is also so costly. For new entrance the marketing isneeded to spread awareness that is also expensive. The staff is required for the airline such as2
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