Strategy and Case Analysis Report

MNG 93002 Strategy and Case Analysis
Name
(Affiliation institution)

Executive Summary
1. The main aim of the report was to conduct internal environment of Ryanair Company
using VRIO analysis, external environment using PESTEL Analysis as well as
competition using Fiver porter’s forces to determine the company’s strategic position and
strategic choices.
2. The Competition Forces analysis showed that European Industry has a medium threat of
new entrant, medium threats on availability of substitute, high bargaining power of
customers and suppliers as well as a high competitive rivalry. The analysis showed that
with an effective strategic position the industry is still attractive for doing business.
3. PESTEL Analysis shows that government restrictions, hikes on oil prices, currency
fluctuations, and uncertainty over Brexit, COVID19, changing government policies and
environment acts are threats that may impact the company even at 2030 scenario.
Changing patterns of customers and growth in technology are opportunities in the market
4. VRIO analysis shows that the company has core competencies in finical resources,
intangible and tangible assets which form part of its strengths.
5. Expansion of the products using both differentiation and diversification strategies, use of
business stability strategy in its operations, reviewing prices structures as well as training
of employees are recommended strategic choices for the company to sustain competition.

Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Context.............................................................................................................................................4
Overview of the European airline industry and Ryanair..............................................................4
Theory..............................................................................................................................................4
Analysis...........................................................................................................................................5
Competitive Forces Analysis.......................................................................................................5
PESTEL Analysis........................................................................................................................6
VRIO Analysis.............................................................................................................................8
Discussions......................................................................................................................................9
Conclusion.....................................................................................................................................10
Recommendations..........................................................................................................................10
References......................................................................................................................................11

Introduction
Conducting internal and external environment that an organization operates enables
businesses to derive effective strategies for penetrating and operating in domestic and
international markets. A research conducted by Ghezzi, Balocco and Rangone (2010 p.213)
shows that big companies fail to impress in various markets due to poor strategies and
positioning which is largely contributed by insufficient knowledge about the market
opportunities and threats. Particularly, in the Airline industry which has been very competitive in
the last decades, some big airlines have found themselves expanding to various markets in
pursuit of profitability. The strategies they adopt in the market to deal with threats and explore
the opportunities have been a key determinant of their success. Therefore, the report seeks to
present an analysis of competitive forces to determine the attractiveness of the European airline
industry and determine how Ryannair should manage the competitive-forces it faces. Besides,
the report will also conduct PESTEL Analysis to develop a scenario analysis targeted at the year
2030 and examine the scenario that presents an opportunity and threats. The report will also
conduct VRIO Analysis to determine the resources and capabilities of Ryanair and provide a
recommendation on strategic choices that the Airline should adopt to improve its chances of
being persistently profitable.
Context
Overview of the European airline industry and Ryanair
European Airline industry consists of over 50 large European Airline which operates in
the continent and around the globe (European Union Aviation Safety Union, 2020). The
European airlines offer a variety of transatlantic or intercontinental flights, transcontinental
flights and domestic flights. The most dominant Airline in European Airline industry includes
Lufthansa Group (flies over 80 countries), Ryanair (flies over 40 countries), International Airline
Group, Air France-KLM, Easy Jet, Turkish Airline, Aeroflot as well as Swiss Airline (European
Union Aviation Safety Union, 2020). Ryanair is one of the companies which had operated in the
market for over 25 years. Currently, Ryanair holding plc. is categorized as the largest airline
group across Europe. Ryanair is the parent company of Ryanair DAC, Malta, Lauda and Buzz.