Ryanair’s Marketing Environment and Strategy
1 INTRODUTION
The aim of this report is to carry out a investigation of Ryanair’s
external environment
and a strategic analysis of Ryanair, 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
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 Europe’s largest
airline in 8 years (www.ryanair.com).
2 ANALYSIS OF THE EXTERNAL ENVIRONMENT
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This is a crucial part of a strategic analysis because organisations
do not exist in a vacuum, they are part of a complex world 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 techniques
have been developed to facilitate the process and to ‘…contribute to
answering the key managerial question…’of what ‘…opportunities and
threats might arise in the future’ (Johnson & Scholes 2002).
2.1 PESTEL analysis
This identifies the main micro-environmental influences by classifying
them into six groups: Political, Economical, Socio-cultural,
Technological, Environmental and Legal. By applying this framework to
Ryanair it is possible to summarise the key forces in the general
environment to present opportunities and threats to the organisation.
Political
= on May 1, 2003, it will mark one of the most important days in
recent European history, 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.
= Stansted airport, owned by BAA, is one of the most rapidly growing
airports in Europe (www.baa.co.uk/...
... middle of paper ...
...) ‘Low-cost airlines likely to resist higher fees to
finance Stanstead’, The Financial Times
Done, K. (19/12/03) ‘Stanstead outlines pounds 2bn scheme to double
capacity’, The Financial Times
Done, K. (20/12/03) ‘Challenge to airports operator’s monopoly remains
even with its friends in high places’, The Financial Times
Done, K. (29/01/04) ‘Ryanair’s dream run comes to an end’, The
Financial Times
Felsted, A. (04/11/03) ‘Can Michael O’Leary sustain Ryanair’s low-cost
success?’, The Financial Times
Gow, D. (16/02/04)’Ryanair plans zero frills and fares’, The Guardian
Hotten, R. (13/03/04) ‘No-frills deal has impact on bmi’, The Times
Insley, J. (18/01/04) ‘Happy New Year for second homes’, The Observer
Insley, J. (08/02/04) ‘You can make it if you try’, The Observer
Newman, C. (03/12/03) ‘Travellers face big rise in air passenger
levy’, The Financial Times
Pratley, N. (05/02/04) ‘Clipped Wings’, The Guardian
Tait, N. (03/12/03) ‘Ryanair in court over wheelchair fee’, The
Financial Times
Tran, M. (03/02/04) ‘Ryanair’s airport subsidies’, The Guardian
Wright, R. (01/12/03) ‘BA threat to sue if Stanstead gets runway’, The
Financial Times
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