Case Study Ryanair---the Low-Fares Airline

Case study

Ryanair---the low-fares airline

Name: Maolei Song

ID Number: A910122

Contents

1. Introduction 2

2. Strategic Position 2

2.1 PESTEL 2

2.1.1 Political and Legal 2

2.1.2 Economic 2

2.1.3 Social 2

2.1.4 Technological 2

2.1.5 Environment 2

2.2 Strategic Capability Analysis 2

2.2.1 Resources 2

2.2.2 Competences 2

2.3 SWOT 2

2.3.1 Strengths 2

2.3.2 Weakness 2

2.3.3 Opportunities 2

2.3.4 Threats 2

3 Strategic Choices 2

4 Evaluation of Strategies 2

4.1 Suitability 2

4.2 Acceptability 2

5 Conclusion 2

Reference: 2

1. Introduction

Ryanair is a very famous budget airline company in Europe which was set up in 1985 by Ryan family. It mainly focuses on supplying scheduled passenger airline and low price services. Ryanair provided full services traditional airline with two classes of seating and three types of plane (O’Higgins, 2008). Although the number of customer has been increasing by the 1990, Ryanair experienced turbulence and five chief left that caused loss of £20 million (O’Higgins, 2008). From early 1990s, Ryanair changed its strategy and imitated the model of Southwest Airlines which is a highly successful in the US (O’Higgins, 2008).

In this report, the environment, resources and competences of Ryanair will be analyzed by the PESLTEL and SWOT analysis methods. And then the main strategy will be analyzed. Finally, those strategies will be evaluated.

2. Strategic Position

The strategic position concerns with the influence on strategies of the external environment, internal resources and competences, and the expectations and influence of stakeholders (Johnson et al, 2006). In the following part, the PESTEL, strategic capability and SOWT would be used to analysis the strategic position of Ryanair.

3.1 PESTEL

The macro-environment situation may affect the strategy position of the organizations. As the following, the PESTEL analysis method will be used to...