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Strategic Analysis of No Frills Airline

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1 INTRODUCTION

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.

Ryanair is Europe 's 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 …show more content…

Ryanair services regional airports, opening up the European countryside to buyers, and this trend means an increase in the possible customer base (Insley 08/02/04).
· The over-55s now represent approximately one third of most EU-countries ' populations, and the figure is increasing. ‘Because of better healthcare and financial planning, a significant proportion… 'of senior citizens‘… are able to indulge in high levels of leisure-orientated consumption… ' (Brassington & Pettitt 2003:48). Analysts recommend developing specific marketing strategies for this market highlighting its growing importance (Lohmann & Danielsson 2001). Ryanair here has an opportunity to increase its market share.

Technological
· New technology will allow mobile phone and broadband use on-board. Carriers, including Ryanair, can thus increase ancillary services by offering on-line shopping, TV screenings and mobile phone usage against a fee. Furthermore, the satellite link could boost operating efficiency by being used to monitor planes, giving early warnings of problems to ground crews, thereby enhancing safety and minimizing groundings (Economist 01/03/03 & Economist 01/04/04).

Environmental
· A recent White Paper emphasised ‘…the environmental importance of including aviation within the global

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