Submitted by: Submitted by TBC112
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Words: 6914
Pages: 28
Category: Business and Industry
Date Submitted: 03/12/2015 12:26 PM
Strategy and Finance
Background of the Case Study: Ryanair
Ryanair proud themselves on being the firm to really embrace the cost leadership strategy to its full heights in order to gain competitive advantage over its competitors and to be the most successful airline in the European Budget Airline industry. Ryanair has a flare for being innovative in it’s operations, and ensures that it makes full use of the capabilities and resources within the organisation in achieving this.
Figure 1
This depicts the number of passengers in million that the selected airlines took on board their aircrafts over a 10 year period where 2010 was an estimate.
Sourced from The Economist Online - http://www.economist.com/node/18010533?zid=303&ah=27090cf03414b8c5065d64ed0dad813d
As from figure 1 Ryanair is the dominant force in the market and dominates in the level of passengers that chooses its airline, therefore making it extremely difficult for the likes of EasyJet and Air Berlin to imitate its methods and strategies in gaining sustainable competitive advantage.
Introduction
In this case study report I will be analysing in great depth Ryanair strengths and weaknesses of it’s financial positioning. I will be examining the market based view of how its external environment and its immediate environment directly affects its performance. I will be assess on how strategic management aswell as financial management on how they can achieve sustainable competitive advantage for Ryanair. From this analysis I will be able to conduct with the help of theories, tools and concepts what are Ryanairs weaknesses and potential threats and offer future recommendations on how they can improve or combat them.
Strategic Analysis
MBV – Business Environment
Macro Environment Analysis
PESTEL Analysis
From using the PESTEL analysis, I’ve governed the significant and main opportunities and threats that Ryanair are facing currently.
Political | The industry is well...