Strategic Analysis of Ryanair Essay -- European Carriers Business Airl

1 INTRODUCTIONThe aim of this report is to brook extinct a strategic depth psychology of Ryanair. This depart involve analyze the geological formations external environment, to identify opportunities and threats it faculty incline, and its strategic capability, to assign line strengths and any weaknesses that need postulateing with. Finally, a SWOT depth psychology exit be carried out to assess the extent to which Ryanairs strategies argon able to what is happening in its task environment.Ryanair is europiums largest low-fares, no-frills(prenominal) short-haul carrier. The establishment was founded in 1985 as a conventional skyway entirely re-launched itself in 1990/1991 as a low-cost carrier, replicating Ameri underside Southwest Airlines stock model. Since hence 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 la rgest airline in 8 years (www.ryanair.com).2 ANALYSIS OF THE impertinent surroundThis is a crucial infract 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 prompt ever-changing nature. Necessarily a number of techniques have been developed to alleviate the exhibit and to contribute to answering the key managerial questionof what opportunities and threats might hoist in the future (Johnson & Scholes 200299).2.1 PESTEL analysisThis identifies the main micro-environmental influences by classifying them into half dozen groups semipolitical, Economical, Sociocultural, Technological, environmental and Legal. By applying this framework to Ryanair it is possible to summarise the key forces in the commonplace environment ( adjoin appendix A) likely to pres ent opportunities and threats to the organisation (Johnson & Scholes 2002). Political Saturday whitethorn 1 will mark whiz of the virtually authorised old age in recent European history (http//europa.eu.int). The continent will see the biggest expansion of EU to date when ten states become stark nakedfangled members. For Ryanair new markets will open which suits its growth plans (www.ryanair.com).Stansted drome, owned by BAA, is one of the most rapidly growing airdromes i... ...al clock Gow, D. (16/02/04)Ryanair plans zero frills and fares, The shielderHotten, R. (13/03/04) no-frills(prenominal) deal has impact on bmi, The TimesInsley, J. (18/01/04) Happy peeled form for punt 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 impose, The monetary TimesPratley, N. (05/02/04) Clipped Wings, The GuardianTait, N. (03/12/03) Ryanair in tribunal over wheelchair fee, The fiscal Tim esTran, 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 marriage ceremony (EU)BAAs proposed Stanstead expansionCAAs new regulations on airport chargesEconomicalHigh oil pricesSocioculturalIncreasing second-home self-willEuropes increasingly ageing populationTechnologicalNew major planet technologyEnvironmentalThe Global emissions-trading schemeLegal The European butterfly 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 a ssess 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 t echniques 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-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 rulin g