Strategic Analysis of Ryanair Essay -- European Carriers Business Airl

1 INTRODUCTIONThe aim of this study is to carry out a strategic compendium of Ryanair. This will involve investigating the organisations external environment, to identify opportunities and threats it might face, and its strategic capability, to confiscate key strengths and any weaknesses that study dealing with. Finally, a SWOT analysis will be carried out to assess the ex disco biscuitt to which Ryanairs strategies are fit to what is happening in its disuniteuriency environment.Ryanair is atomic number 63s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating Ameri muckle Southwest Airlines business model. Since then Ryanair has grown substantially and successfully. The company currently has 146 routes to 84 destinations in 16 countries, and carries more than 15 million customers annually. Ryanair aims to be Europes largest airline in 8 years (www.r yanair.com).2 analytic thinking OF THE EXTERNAL ENVIRONMENTThis is a crucial part of a strategic analysis because organisations do not exist in a vacuum, they are part of a complex world (Bowman 198761) and many factors thunder mug influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been develop to facilitate the process and to afford to answering the key managerial questionof what opportunities and threats might arise in the future (Johnson & Scholes 200299).2.1 PESTEL analysisThis identifies the main micro-environmental influences by classifying them into sixsome groups Political, Economical, Sociocultural, Technological, Environmental and Legal. By applying this poser to Ryanair it is possible to summarise the key forces in the general environment (see appendix A) likely to present opportunities and threats to the organisation ( Johnson & Scholes 2002). Political Saturday whitethorn 1 will wampum one of the most important days in recent European history (http//europa.eu.int). The continent will see the biggest expansion of EU to date when ten states become new members. For Ryanair new markets will open which suits its growth plans (www.ryanair.com).Stansted airport, owned by BAA, is one of the most rapidly ontogenesis airports i... ...al Times Gow, D. (16/02/04)Ryanair plans zero frills and fares, The shielderHotten, R. (13/03/04) No-frills deal has impact on bmi, The TimesInsley, J. (18/01/04) Happy New Year for second homes, The ObserverInsley, J. (08/02/04) You can bring up it if you try, The ObserverNewman, C. (03/12/03) Travellers face big rise in air passenger levy, The Financial TimesPratley, N. (05/02/04) Clipped Wings, The shielderTait, N. (03/12/03) Ryanair in royal court over wheelchair fee, The Financial TimesTran, M. (03/02/04) Ryanairs airport subsidies, The GuardianWright, R. (01/12/0 3) BA threat to sue if Stanstead gets caterpillar tread, The Financial TimesPESTEL ANALYSIS APPENDIX APolitical The expansion of the European Union (EU)BAAs proposed Stanstead expansionCAAs new regulations on airport chargesEconomical gritty oil pricesSocioculturalIncreasing second-home ownershipEuropes increasingly ageing populationTechnologicalNew beam technologyEnvironmentalThe ball-shaped emissions-trading schemeLegal The European Court of Justice ruling Strategic Analysis of Ryanair Essay -- European Carriers Business Airl1 INTRODUCTIONThe aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisations external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanairs strategies are suitable to what is happening in its task environment.Ryanair is Europes largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines business model. Since then Ryanair has grown substantially and successfully. The company currently has 146 routes to 84 destinations in 16 countries, and carries more than 15 million customers annually. Ryanair aims to be Europes largest airline in 8 years (www.ryanair.com).2 ANALYSIS OF THE EXTERNAL ENVIRONMENTThis is a crucial part of a strategic analysis because organisations do not exist in a vacuum, they are part of a complex world (Bowman 198761) and many factors can influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been developed to facilitate the process and to contribute to answering the key managerial questionof what opportunities and threats might arise in the future (Johnson & Scholes 200299).2.1 PESTEL analysisThis identifies the main micro-environmental influences by classifying them into six groups Political, Economical, Sociocultural, Technological, Environmental and Legal. By applying this framework to Ryanair it is possible to summarise the key forces in the general environment (see appendix A) likely to present opportunities and threats to the organisation (Johnson & Scholes 2002). Political Saturday May 1 will mark one of the most important days in recent European history (http//europa.eu.int). The continent will see the biggest expansion of EU to date when ten states become new members. For Ryanair new markets will open which suits its growth plans (www.ryanair.com).Stansted airport, owned by BAA, is one of the most rapidly growing airports i... ...al Times Gow, D. (16/02/04)Ryanair plans zero frills and fares, The GuardianHotten, R. (13/03/04) No-f rills deal has impact on bmi, The TimesInsley, J. (18/01/04) Happy New Year for second homes, The ObserverInsley, J. (08/02/04) You can make it if you try, The ObserverNewman, C. (03/12/03) Travellers face big rise in air passenger levy, The Financial TimesPratley, N. (05/02/04) Clipped Wings, The GuardianTait, N. (03/12/03) Ryanair in court over wheelchair fee, The Financial TimesTran, M. (03/02/04) Ryanairs airport subsidies, The GuardianWright, R. (01/12/03) BA threat to sue if Stanstead gets runway, The Financial TimesPESTEL ANALYSIS APPENDIX APolitical The expansion of the European Union (EU)BAAs proposed Stanstead expansionCAAs new regulations on airport chargesEconomicalHigh oil pricesSocioculturalIncreasing second-home ownershipEuropes increasingly ageing populationTechnologicalNew satellite technologyEnvironmentalThe Global emissions-trading schemeLegal The European Court of Justice ruling