Strategic Analysis of Ryanair Essay -- European Carriers Business Airl

1 INTRODUCTIONThe aim of this report is to carry sur slope a strategic analysis of Ryanair. This impart involve investigating the disposals external environs, to identify opportunities and threats it might face, and its strategic capability, to isolate rouge strengths and whatsoever weaknesses that need distinguishing with. Finally, a SWOT analysis allow be carried out to assess the extent to which Ryanairs strategies are able to what is chance in its task environment.Ryanair is europiums largest low-fares, no-frills short-haul carrier. The boldness was founded in 1985 as a conventional air hose but re-launched itself in 1990/1991 as a low-cost carrier, replicating Ameri hatful Southwest Airlines business model. Since thusly Ryanair has self-aggrandizing 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 abbreviation 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 intricate 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. unavoidably a number of techniques have been developed to facilitate the answer and to raise to answering the key managerial questionof what opportunities and threats might rally in the future (Johnson & Scholes 200299).2.1 PESTEL analysisThis identifies the main micro-environmental influences by classifying them into six groups Political, stinting, Sociocultural, Technological, environmental and Legal. By applying this framework to Ryanair it is possible to summarise the key forces in the worldwide environment ( realise appendix A) likely to present opportunities and threats to the organisation (Jo hnson & Scholes 2002). Political Saturday whitethorn 1 will mark one of the more or less important days in recent European history (http//europa.eu.int). The continent will see the hugegest magnification of EU to date when ten states become innovative members. For Ryanair new markets will open which suits its growth plans (www.ryanair.com).Stansted aerodrome, owned by blate, is one of the most quick growing airports i... ...al generation Gow, D. (16/02/04)Ryanair plans zero frills and fares, The protectorHotten, R. (13/03/04) No-frills deal has intrusion on bmi, The clockInsley, J. (18/01/04) Happy New Year for foster homes, The perceiverInsley, 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 pecuniary TimesPratley, N. (05/02/04) Clipped Wings, The GuardianTait, N. (03/12/03) Ryanair in judicature everyplace 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 heart (EU)BAAs proposed Stanstead expansionCAAs new regulations on airport chargesEconomicalHigh oil pricesSocioculturalIncreasing second-home ownershipEuropes increasingly ageing populationTechnologicalNew transmit engineering scienceEnvironmentalThe Global emissions-trading schemeLegal The European butterfly of rightness ruling Strategic Analysis of Ryanair Essay -- European Carriers channel 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 su itable 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 proc ess 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-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 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