PESTEL Of RYANAIR

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Introduction

Ryanair is an airline with the straight of low fare. Ryanair operate over 1500 flights per day from 51 bases, across 28 countries. The firm has over 1,500 routes, connecting 168 destinations. Ryanair has 290 new Beoing 737-800. They plan to buy a further 13 new aircraft. Ryanair has the average youngest aircraft group in the Europe. The firm runs with more than 8500 employees. First part of the report is analysing the external environment of airline industry through the model of PESTEL. The second part is using value chain to analysis the airline named Ryanair.

PESTEL

Political/ legal issues

Passenger rights in the EU

The EU has passed a legislation that aims to improve the rights for passengers who travel form EU
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Environmental issue

It is widely known that aircrafts make large quantity of air pollutions and noise pollutions. As more and more governments notice the importance of protecting environment, airline industry is facing serious problems how to make lowest cost for their pollution and how to decrease the pollution they made. It is obviously that government have increased the tax rate of population to provide the environment. People’s environmental awareness is increasing too. They would like to choose a more green way to travel than a way makes a lot of pollutions.

Value chain for Ryanair

The value chain is a concept from which described and popularized by Michael Porter in Competitive Advantage: Creating and sustaining Superior Performance.
A value chain is a chain of activities that a firm operating in its industry. A value chain has two parts: support activities and primary activities. Support activities are firm infrastructure, human resource management, technology and procurement. Primary activities are inbound logistics, operations, outbound logistics, marketing and sales and service. Not all activities make profit for the firm. But each part of operation is linked. The straights are for the activities which make real profit. Analysing value chain can improve the core competitiveness of company.

Support activities

Firm infrastructure

Ryanair’s main strategy is low cost strategy. They do everything to reduce

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