The strategic position and strategic choice

RUNNING HEAD: STRATEGIC POSITION AND STRATEGIC CHOICE
STRATEGIC POSITION AND STRATEGIC CHOICE
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STRATEGIC POSITION AND STRATEGIC CHOICE1
Executive summary
To compete in an intensely competitive business environment, a business organisation can utilise
the strategic position and strategic choice. Through a strategic position, a business organisation
differentiate its business operation with its competitors. To determine the future strategy for the
company, the authority of a company can use strategic choice. In the European Region, Ryanair
Airline does its low-cost airline business. Competitive forces analysis has identified that the
competitive rivalry, the bargaining power of customers and suppliers for this company are high.
The threat of new products and new entrants for this company is low. A PESTLE analysis has
identified that the business of this company may face disruption due to the COVID-19 pandemic
and the BREXIT. A VRIO analysis has identified that leadership, subsidies from the
government, low airport fare, the new fleets are the key resources of this company. In the end, it
is recommended that this company needs to improve its customer service to retain happy
customers.

STRATEGIC POSITION AND STRATEGIC CHOICE2
Table of Contents
Introduction:....................................................................................................................................3
Analysis:..........................................................................................................................................3
Context:........................................................................................................................................3
Theory:.........................................................................................................................................4
Strategic position:....................................................................................................................4
Strategic choice:.......................................................................................................................4
Competitive forces analysis:........................................................................................................4
Bargaining power of suppliers:................................................................................................4
Bargaining power of customers:..............................................................................................5
The threat of substitute products and services:........................................................................5
The threat of new entrants:......................................................................................................5
Competitive rivalry:.................................................................................................................5
PESTLE analysis:........................................................................................................................6
VRIO analysis:.............................................................................................................................8
Value:.......................................................................................................................................8
Rareness:..................................................................................................................................8
Imitability:...............................................................................................................................9
Organisation:............................................................................................................................9
Discussion:.................................................................................................................................10
Conclusion:....................................................................................................................................10
References:....................................................................................................................................11

STRATEGIC POSITION AND STRATEGIC CHOICE3
Introduction:
Strategic positioning and strategic choice are important for a business organisation to
achieve competitive advantage. Strategic positioning is the choice of a business organisation to
create value which will differentiate the company from its competitors. The strategic choice
indicates the decision, taken by the authority to determine its future strategy. This report aims to
analyse the European airline Ryanair by using competitive force analysis, PESTLE analysis and
VRIO analysis. By using the outcome of these analyses the authority of this company will fix its
strategic positioning and strategic choice.
Analysis:
Context:
The European Airline industry was badly affected by the 2008 economic crisis. This
industry is successful to maintain sustainable growth since 2014. The number of the traditional
scheduled flight and low-cost flights has enlarged since 2015. In 2017, the total number of low-
cost flights in this region was 3.03 million (Easa.europa.eu. 2018). The number of traditional
scheduled flight in 2017 was 4.87 million (Easa.europa.eu 2018). In comparison with 2005, it
can be said that in 2017 the number of passengers has increased by fifty per cent (Easa.europa.eu
2018). In 2017, among the share of total flights in the Airline category, the share of the low-cost
airline was 31.7 per cent (Easa.europa.eu 2018). According to the European Union Aviation
Safety Agency, the number of flights will be increased by 42 per cent between 2017 and 2040
(Easa.europa.eu 2018). Low-cost airlines connect more city in comparison with traditional
scheduled airlines. So it can be said that in future the demand for the low-cost airline will
increase. However, the airline of this industry has to follow environment-related rules and
regulation to do its business in the EU.
In 1984, Ryanair Airline was established. Headquarter of this business organisation is
located in Dublin, Ireland. Ryanair Dac, Buzz, Lauda and Malta are the parent company of
Ryanair Airline. More than 200 of destinations in 40 countries are connected by the Ryanair
Airline (Ryanair.com 2020). Michael O’Leary is the present CEO of this company (Ryanair.com
2020). The number of permanent employees of this organisation in 2019 was 18640 (Mazareanu
2020). The mission statement of a Ryanair Airline is “to offer low prices which can produce