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Ryanair Strategic Management and Business Planning Case Study

Introduction:

Following report is dependant on the SWOT and PESTEL research of the Ryanair. This survey will summarize about the talents, weakness, opportunities and risks of the ryanair. We will also analyze about the external environmental effect by using the political, Economical, communal, technological, environmental and legal research. There is certainly briefly background of the ryanair which clarify the assets and starting problems and till now, about the health of internally and externally environment of the ryanair. Firstly discuss about the external environmental impact on the Ryanair and related to the strategy of the Ryanair. Basic target and aim is to provide low priced fare services and increase success and to be considered a head of market. Utilizing the strategy of PESTAL evaluation can forecast environmentally friendly change. For the examiner of environmental change have used different approaches like Bowmen's strategy clock, Anoffs matrix, Michael's porter's strategy.

In addition, for determinant clarify the porter's five push model that have help out in the examination of the competitive advantages, new entrants, hazards of substitutes. SWOT evaluation is the ultimate way to look at the internally condition of the Ryanair. It has explained about the powerful element and weakened elements and also given the information about the new opportunities that Ryanair can get.

Strategy Management:

Strategy is the way and range of an organization which achieve their goals in changing environments through its settings of resources and competence with the purpose of fulfilling stakeholder wishes over the long-term periods.

There are following points which make clear the term strategy:

Strategy can be involved with the long-term planning of any business.

Strategy can be involved with opportunity of any organizational activities.

Purpose of strategy is to achieve some advantages of the business over competition.

Strategy is also damaged by the principles and expectation of those who have power around the business, not only environmental forces and strategic makes.

Main purpose of strategy is to attain its goals and goal of organization.

History of Ryanair:

Ryanair is one of the very most aircraft on the planet including 44 bases and the 1100+ low fares more than 26 countries linking with 175 countries. Ryanair has been launched by Ryan family in 1985 with the share capita 1 and 25 staff members. In 1986 ryanair has used permission from British isles airways and Aer linguis. Services are launched 1st turbo 46 seating plane from Dublin to London in-may. After three year rapid development, in 1990 ryanair encountered 20m accumulated loss and Ryan family has invested more 20m and as duplicating the southwest airlines it was relaunched again and made new strategies under the new managerial systems and reduces their fares from 99 to 59 return seat tickets. In 1991 ryanair has changes its bases from Lutin to new air-port of London Stansted which got new terminal and direct website link of rail services. With the passage of time, ryanair has seen many changes each year. In 1995, Ryanair possessed untaken the British isles airways and Aer linguis. And in addition celebrated its 10th birthday with the great party. It becomes biggest air way in the Europe and internationally and also lowest fare rate airline domestically. Ryanair expansion increased speedily and employees will get shares of Ryanair and Ryanair received new Boeing aircrafts. In 2000, Ryanair has launched its website for the benefit of customers like reservation, accommodation, coach facilities and so many more allowances as well. Furthermore, Ryanair has used new employees and is rolling out job. Ryanair also promoted staff in 2007 and 2008.

External Environment:

Ryanair is major low cots air travel in the Europe. Ryanair is the largest trading and achieved its progress in friendly environment. Ryanair strategy is wanting to improve its performance more. Ryanair has substituted its old Boeing plane to the new developed technology aircrafts. Ryanair also reduces the utilization of fuel and minimise the ratio of CO2 per passenger. Strategy of Ryanair is low priced fare and much more success. Ryanair also use the idea to point journey planner and attempted to not landing through the way. In addition, it tried to lessen the time. Ryanair also reduced to affection and disturbance by the noise or airplane. It used new technology for less noise like new winglets and its help you in reduction of sound. Ryanair is the low cost which is not offered to passenger for free food, refreshments and a lot of things. It safe thing not spend it. Ryanair has increased in tourism, occupation level, and infrastructure. Theses exterior aspect has great impact on the strategy of the ryanair. Ryanair has basic goal low fares and high revenue and giving good customer support to the individuals. Using the [passage of energy strategy of ryanair is developed and many changes incurred in it. Ryanair strategy is reducing the costs which include workers, equipment cost, airport access alternatively than its competitors. Additionally, Ryan air with the high fruitful source is trying to boost its output which helps in reducing the labour cost.

Ryanair strategy:

After look at the SWOT research and Ryanair capacities now we can certainly identify about the strategy of Ryanair. Ryanair has cost minimization strategy through this it desire to be innovator of market and want to gain competitive advantages. Ryanair strategy is trying to concentrate on the aviation industry, new fleets, and airport terminal charges road services and controlling marketing cost etc. Basic aim and goal of ryanair is to increase low fares services and by doing continues improvement desire to be European low cost scheduled airline.

Moreover, Ryanair providing low priced fares for those who have travelled by other method of transport and also those people did not ever before travel at all. Based on the statistical data Ryanair has retained the recode of punctuality. Ryanair do indicate point and non-stop routes which includes reduced the price of services. In addition, it increase the efficiency level by using work force which has help out in minimising labour cost. Ryanair offers Bonuses, compensation, fee based on time for the encouragement of personnel and workers and crew member and pilot. Ryanair has new booking system developed internet facility. Ryanair does not compensate with its safety rules, staff training and quality insurance and do not extend its low cost strategy in theses area. For the fixing of the crafts it includes contract with the 3rd party according to the European airlines usually repairing and maintenance work done by itself in London. Except many of these things ryanair take care about the client service, providing food, drink, travel cover, car local rental and accommodation and it also provide telephonic reservation and various facilities.

PESTEL Analysis of Ryanair:

Political:

In political research of ryanair include the internal and exterior stability of politics condition in Europe countries like Middle East. Ryanair has to follow New EU rules and regulation, expansion and obligation free sales of products. Administration has help to the ryanair to take it internationally. Authorities also provided full security system to the ryanair.

Economical:

Outside and inside overall economy differs in the Europe. Inside current economic climate is secure while outside overall economy is non steady. Price of fuel is increasing daily and depreciation of US dollar also increasing. There are some regional subsidies also more suitable in the ryanair examination. Ryan air also created linkage of between new highly speed trains and air port.

Social:

In social analysis of ryanair, there is increase in gray marketing and also lifestyle of going is changing daily. There is also change in consumer's demographics. Demand and choices of consumers also altered and fluctuated with the duration of time.

Technological:

Ryanair bought new fleets and advanced technology aircrafts for the consumer's satisfaction. In addition, it presented new software programmes for the improvement in supply chain systems. Ryanair also increase information technology, gaming and competition on the market as well. Ryanair also used satellite tv and also try to reduce fuel utilization.

Environmental:

Ryanair has reduced noise pollution. It has used new scientific system to lessen the noise. In addition, it saves the environment from dangerous gases like greenhouse CO2 emission.

Legal:

Ryanair has followed the legal laws and regulations. It offers removed the illegal subsidies from airport terminal. Ryanair also lay claim illegitimate advertising on the airport terminal.

Forecasting Environmental change:

Michael's porter generic strategy:

Porter's universal strategy clarifies about the cost benefit and differentiation emphasis. This system is suited to those companies who based on cost leadership and differentiation and concentration. By using the cost control strategy ryanair acquired the competitive gain and market control. Ryanair has earned very high revenue in very short time period utilizing the low fares. Management strategy has given help to the client for decision making. It has offered to the customer low fares and supplementary to secondary flies by using the differentiation. Ryanair has purchases aircrafts not complete fleets but has given best customer support.

Ansoff's matrix:

Igor Ansoff focuses on the company's present and potential product /services and market situation. There are four possible combinations of growth that is existing product with new product, existing market with new market, market development and product development and diversification.

Ryanair has drawn the marketplace towards itself by using the pattern of low priced and realistic fares. Ryanair has diversified its staff based on the seperate location and vacation spot. Ryanair is trying to grow its business and growing the staff that will take it towards success.

Bowman's strategy clock:

Bowman's strategy clock explains competitive position of your company with comparability of competitors. We can analyse the problem and troubles of Ryanair through this approach from last few years. You can find eight different options which can identify the competitive position. They are as follows: low price, low added value, differentiated, hybrid and focus differentiated, increase standard or price, increased price and low value or standard price. From previous couple of years ryanair has performed very affective changes due to its effective managerial system. Ryanair has acquired very high profit in very short time by following affective time timetable giving significant value on the development of Ryanair.

National benefit by using techniques of Ryanair:

There are different techniques through we can analyse the countrywide advantage of ryanair.

Porter's five pressure model:

By using the porter's five force model, we came to know about the worthiness and need for the ryanair in Europe market. It includes threat of new entrant, threat of replacement, competitive rivalry, bargaining electricity of dealer hand customer.

Threat of new entrant mean need high revenue for coming in the market level and offer customers low fares. It's difficult high investment. In addition, it need flight authorisation. Ryanair has threat of its substitute like ferries, Euro range, automobiles and rail services and a great many other substitutes as well. It has also threat from its customers it generally does not have loyalty brand, no turning of the costs, no close relationship with the client. Air bus and Boeing are the two main distributor of the ryanair and the turn cost from one supplier to some other is high because if indeed they do this they have to retained their employees again. Ryanair has more competitive ability alternatively than small airlines because they operate regional level in small airports but ryanair functions on bog international airports. Ryanair has threat of its customers, if the prices are hypersensitive than customer may easily proceed to other airlines through online ad, scheduling and by offering good customer service so we cannot depend on the customers.

Moreover, Price of the ryanair is the primary competitive factor to others. There is not much differentiation low priced prices to other airlines. As LCC is the high competitive market there are chances to do a similar thing. In market there are many competitors they can competition with the prices and profits but in existing situation competition cannot compete with dead to useless competition by choosing different service routes.

SWOT Research of Ryanair:

Swot Analysis identifies the internal situation of the organisation. The main reason for the SWOT examination is to know about the durability, weakness, threats and opportunities of the organisation. Additionally it is beneficial to bring changes in the strategy of the company and came to learn about the existing the problem and where company standing and where it should need to be.

Strengths:

Ryanair has strong brand image and due to its strong brand image it offers reduced the hurdle of accessibility to new airports and has increased the barriers for new entrant. Ryanair is first of all low fares cost flight in the European countries and still maintained its image. London Stansted is the main one of busiest aviation traffic zones where are bases of ryanair operationalsing. Ryanair is the impressive and has competitive marketing quality. Ryanair has improved safety, higher petrol efficiency and properly income planning by offering low fares. Solitary aircrafts has help you in lowering training, maintenance and supervisory cost. Ryanair has reduced it labour cost by reducing by non-unionised it labour compelled.

Weakness:

Negative press survey, poor customer services has bad effect on the brand image of the ryanair. Ryanair have low level of trained staff and also give low level of empathy and moral to the employees but ryanair need well trained craft workers. If any new fees are applied on new fares it become cause of misleading, wrong ad, misleading website become reason of level of sensitivity of ryanair. Mobile phones and wagering also prohibited during journey which is discouraging the clients. Increase in the emission of CO2 and gasoline consumption and it has bad effect on environment.

Opportunities:

If ryanair start better business routes and start new operation by doing merger and acquisition. If ryanair fulfil the EU market requirements then because of its low fare plan it can develop the economy growth and raise the employment opportunities. Open up SKY contract can help you to develop its business path and loan consolidation of low fares. It can attract middle income people for the visiting. Ryanair can also get new fleet on lease and it'll be good way to obtain earning.

Threats:

There many competitors on the market like LLC are immediate competitor of ryanair which includes affected the share market. Rich people and higher school people don't choose low fare they want good and top quality service so that is also threat for the ryanair. It could create problem to make decision in future. New rules and legislation can be threat for the ryanair, might be it can emphasis to boost the cost. Risk of war and bad weather can create problem in voyage planners.

Strategic features of Ryanair:

Strategic capabilities indicate those skills and ability that help out to achiveve the stage of security of market. It includes two types.

Resources

Competences

Resources:

Threshold resources:

Ryanair includes Plane tickets, office equipment, mind quarters, financing resources and employees.

Core resources:

Ryanair has also core resources which is CEO Michael O'Leary.

Competence :

Threshold competences:

It includes online bank operating system, operation of promptly delivery,

point to point routing.

Core competences:

Core competence of ryanair is low cost, no frill strategy and road policy strategy.

All of the features of the ryanair are the area of the SWOT. We are able to come to know about the resources of the ryanair and which center ideas and threshold are includes. Additionally it is helpful in research of strategy of ryanair.

Ryanair competitive advantages:

Ryanair have competitive advantage because of its low fares, no frills, indicate point fights, online reservation, tickles boarding no refund policies and so many more. Except theses there are many reasons like marketing on international airports, no cargo service, new air craft's, new fleets and ryanair have commercial partnership which is the reason of high efficiency level. Ryanair also provide basic services during journeys.

Conclusion and recommendations:

At the end, in my viewpoint Ryanair should have to continue its competitors which strategy techniques they are using like Virgin flight are employing Bowman strategy clock so that it must have to use it. Ryanair must have to offer high and good quality service with low prices through these customers will get more. Yip and Johnson has appraised on the article Transforming Strategy that if the company is offering less expensive with the low strategy does not have any work and cannot contend with their competitors. Ryanair has tried to hit the precise market like Ireland UK market by organise development plans. Ryanair feels that by increasing the product quality service and routes from UK to European countries where the high cost service are available, it can increase the sales. Thus, Ryanair strategy low fare, good service, no frill strategy can make more income and can increase their income level as well as they can bound in connection with the stakeholders customer and people.

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