The Porter's Five Forces Analysis Of Ryanair

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The porter’s five forces framework is a tool that focuses on the macro environment of a business or company. In this case, I will focus on a leading low-cost airline in Europe which has been developing over the years due to the favorable strategic positioning of the company. The analysis of Europe as a country and the systems that affect it is also evaluated in the paper. However, the analysis will revolve around Ryanair as an airline in Europe and strategic analysis of the environment in terms of the Porter’s five framework analysis. Ryanair is ranked among one of the leading airlines in the European Union. Ryanair is located in Europe which creates the need to look into the political, economic, social, technological, legal and environmental (PESTEL) sectors of the Company. The linkage is evidently depicted as the market forces in Europe and how these affect Ryanair should be looked into. However in many instances not all of the issues will be relevant to a particular industry therefore one must concentrate on those issues that impact most significantly on the industry. By carrying out a PESTEL analysis on the industry we will be in a position to identify and understand the key factors which may have an effect on the strategic decisions to be made by companies operating within the industry such as Ryanair. Europe is a country that is stable, has potential for expansion, faces trade union push and taxes carbon for the global environment. The social environment experiences variations in the demographic setup therefore affecting the consumer’s preferences. Socially, the country has many short term trips with threats of terrorist attacks and environmental awareness is on the rise. Legally, there are stresses on emissions and l... ... middle of paper ... ...ontinue to search for modes to decrease the costs and ensure more booking is done online rather than on calls. As can be seen from the analysis above, the weaknesses like press vulnerability breaching from the poor customer services can be strengths and other threats like price sensitivity minimized through opting for traditional methods of air travel. Ryanair can evidently operate better and be better than the present situation. The opportunities and strengths practically outdo the threats and weaknesses which go to show that the present position of the company is favorable. Ryanair is located in Europe and can utilize this to their advantage as the position also gives it a competitive advantage. Ryanair is not yet there, but through flexibility, deeper analysis and different approaches will build on the strengths and opportunities, it can soar to greater heights.

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