Strategic Position Analysis of the Ryanair

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Strategic Position
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Executive summary
This paper aims at the strategic position analysis of the Ryanair that is one of the largest low cost
airlines of Europe. The paper further puts light on the strategic choice of the airline company
having used the tools such as PESTEL, PORTER’ and VRIO. These tools help in elaborating on
the external and the competitive factors along with the capability of the company in standing still
against the potential rivals. The report also presents few recommendations so that the company
can be equally successful in the coming days too.

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Introduction
The strategic position deals with the impact of external environment, the expectations and
the stakeholder influences the internal resources on the competencies on the strategy of an
organization. In short, it is a consideration of the environment, the expectations, the strategic
capability within the cultural and political framework. This provides the foundation for
understanding the organization’ strategic position. It is quite significant to take into account it
about the future and then assess whether the recent strategy is that much suitable for the
organizations’ strategic position or not. When it is not, the organization should determine what
the changes that are required for making are and whether it is that much capable of affecting the
changes. As a summary, the strategic position then forms such an integral part of the whole
process of strategic management that it further informs the strategic selections which need to be
made and then implemented subsequently.
There are many tools through which the strategic position of an organization can be
known such as PESTEL analysis the Portal analysis, the VRIO framework and many others. The
resulting information should be used by an organization effectively and it should be debated,
discussed and then showed that the implication is understood properly (Roelens, Steenacker and
Poels 2019). The organization is further required to develop their own techniques for
understanding the position. The understanding of the external environment consists of two
influences such as a macro influence and the micro influence. In the Macro influence, their
economic, political, social, technological factors and in the micro influencers there are factors
which are particular to the industry such as competition, suppliers, customers, barriers of entry.

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In this report the strategic position of European airline named as Ryanair will be demonstrated
consisting of competitive force analysis, the PESTEL analysis the VRIO analysis and conclude
with effective recommendations.
Discussion
About the airline
The Ryanair is considered to be the first and the largest airline in Europe based on
budget and it has enjoyed considerable growth founded on the low cost business model having
huge financial performance even during the period of financial recession (Barrett 2016). The
previous Indifference of Ryanair towards the complaints regarding low-quality of the customer
service was reversed in the year 2014 when it introduced an ‘always getting better’ plan. It is an
Irish budget airline that was founded in the year 1984 and the headquarter of the airline is
situated in Dublin and London. It has formed the largest part of the Ryanair Holdings family of
the Airlines having Lauda, Ryanair UK are the sister airlines. This airline operates in more than
300 Boeing 737- 800 aircraft (Furse 2016). It is notable that the company has been criticized
several times for the situations and use of extra amount.
Theory
The strategic choice is the decision of selecting from the grand strategies that are
concerned, the strategy that will help in meeting the objectives of the enterprises in the best way.
This decision further involves few steps such as concentrating on few alternatives, the focus on
the selec6tion factors, the evaluation of the alternatives and making the real choice. There are
few factors that affect on the strategic choice such as the environmental constraints, the
management and the relationships of power, the impact of the past strategy, the competitive