Essay on PESTEL of Rynair

Ryanair is one of the largest airlines in terms of passenger numbers (REF) and has continuously grown in size and value over time as shown above. The extent of such an expanding firm is conveyed over the last eight years as Ryanair’s profits have more than quadrupled. However, there have been drops in profits in 2004 and 2008. In 2004, the airline was hugely affected by the conflicts in Iraq, the renewed threat of terrorism and endless increasing oil prices. However, in this same period, Ryanair managed to launch new bases in Rome and Barcelona, launch 73 new routes, takeover their competitor Buzz for a knock-down price and carry more passengers than BA in the European market. The reason for the decrease in profits in 2008 was due to increases in fuel prices and significantly increased airport charges, particularly at their largest bases at Stansted and Dublin.

The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s 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 Ryanair’s strategies are suitable to what is happening in its task environment.

1. Ryanair’s domain in relation to the external environment and sectors of concern for the company

The purpose of this report is to comment at the first part how Ryanair achieve its competitive advantage through the RBV analysis (Barney,1991), the second part will assess its approach to the diversification through the Ansoff matrix , the third part will discuss the company’s organisational culture using the cultural web modeland last part its internationalization strategy.

“Since Ryanair pioneered its low cost operating model in Europe in the early 1990s, its passenger volumes and scheduled passenger revenues have increased significantly because it has substantially increased capacity and demand has been sufficient to match the increased capacity. Ryanair‘s annual booked passenger volume has grown from approximately 945,000 passengers in the calendar year 1992 to approximately 81.7 million passengers in the 2014 fiscal year”. (Ryainair,2014p4-8)

There are numerous Airlines that operate here in the UK, the largest of which is British Airways. Due to the Airline industry being one of the most profitable market places in the world, the rivalry is extremely competitive. The fierce competitive environment forces these Airlines to constantly react to their rivals marketing strategies and the public’s consumer needs, all in the hope of making themselves appeal over that of the

1. In-depth environmental analysis of the European Airline industry and discuss the implications for the budget sector and especially for Ryanair. 2. An integrated understanding of the functioning of a company – its human and technical operations, leadership, customer relationships and financial structure. 3. Implications of the internal functioning to create viable strategic positioning and discuss any changes to Ryanair’s approach to ensure an improved sustainability 4. Evaluate the strategic leadership style of Michael O’Leary

During 2002, Ryanair would charge its one-way fares at about 50 Euros. The Pricing approach adopted by Ryanair more commonly termed the ‘Ryanair effect’ had become a popular marketing strategy worldwide. Part of the Ryanair’s strategy for increasing market demand is the distributing of free tickets. In the first few months of 2003, Ryanair had distributed 100,000 free seats as a way to celebrate its opening of its new outlet at Bergamo. As a result, Ryanair received 90million passengers in 2004 and consequently offered 900,000 seats at 90 pence. Researchers have accumulated that within 5 years time, Ryanair would plan on giving away 50% of its flight tickets for free. Accordingly passengers’ perception of LCCs will thus expect lower fares from Low-Cost Carriers, especially from Ryanair. Research was drawn to asses the cross-price elasticity of demand between Low-Cost Carriers and full-Service Carriers. The aim was to figure out the behavioural patterns of passengers if they are willing to switch from Low-Cost Carriers to traditional airlines if fare levels reduced significantly. Results show that If Full-Service airlines reduced their fares by 30%, then 45% of Ryanair’s passengers and 39% of Air Asia’s passengers would be willing to switch airlines. Even if Low-Cost Carriers in Asia was just relatively a new phenomenon, they have already adopted strong low fare

In 1971, Southwest Airlines revolutionised air travel with its low fares and strong focus on customer service. Ryanair used Southwest’s innovative business model and have become very successful. Today it operates across 26 countries and carries more international passengers than any other airline in the world (73 million passengers in 2010/11) On the other hand, unlike Southwest Airlines, Ryanair did not consider focusing on customer service. They have a very poor reputation in this area (Euromonitor International, March 2009). Even though

In this report, we will start presenting the history of Ryanair airline. After this, we will discuss the competitive advantage of Ryanair, how they gain it and build it. And we will answer whether Ryanair was able to sustain its competitive advantage or not and why. Also, we will identify the competitive strategy that Ryanair pursued and we will list the

To identify an appropriate strategy for a given industry one must look into the external and internal factors influencing the company. The following report will discuss these factors regarding Ryanair, which is one of the leading budget European airlines.

Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair

My first and most important goal in undertaking this research assignment is to source, dissect and analyse the low cost strategy model of Ryanair and how they succeed in using this strategy.

There are various types of goals in case study. The main goals is expanding their airways to major business centers in Eastern Europe and the middle and east .To achieve the goals, the specific objectives are to provide exceptional value for money ,unparalleled comfort and convenience to its passengers, every time they are on board. The airline has an increasing presence at Scotland’s main airports in Glasgow, Edinburgh and Aberdeen. Scotia Airways is the first airline to offer full business class service, but at prices that are

In this essay, I will also be looking at the customer service of Ryanair. Ryanair is a low budget ‘no frills’ airline which offer domestic, inbound and outbound flights out of their hub which is Stansted. Ryanair have their headquarters in Swords, Ireland. First founded in 1985 by the Ryan family, with a share capital of just £1.00. They offered a 15 seated aircraft during the summer months from Waterford, which is in the southeast of Ireland to London Gatwick. In 2013 Ryanair saw 81,668,285 passengers, with over 300 aircraft in their fleet but with the added 180 aircraft ordered in 2013 they hope to see their fleet over 400 by the end of 2014, then a further increase to 500 by 2019. They currently fly to 183