Strategies That Budget Airline Ryanair Had Performed Tourism Essay
This report looks in to the strategies that Ryanair had performed under the guidance of Michael O’Leary during the backdrop of the European airline industry and the burgeoning budget sector. Ryanair was the first budget airline in Europe modeled after the successful US carrier, Southwest Airlines. Ryanair introduced the lowest cost concept in Europe and became industry leader in the low cost airline market by minimizing costs.
The purpose of this analysis is to evaluate the strategy of Ryanair and to discuss and analyze its macro environment, industry and external environmental characteristics which will enable Ryanair to succeed in the European airline industry. This analysis consists of three major components.
Analysis of the macro environment – I will be analyzing Ryanairs external environment by performing a PESTLE analysis
Analysis on the industry – The industry that Ryanair operates will be analyzed by using Porters five forces model.
Analysis of the internal environment. – The VRIO Framework will be used to conduct the internal analysis.
Both the internal and external will be analyzed using a SWOT analysis.
The recommendations of this report will mainly be based upon various theories and models which will be discussed throughout this report. The main objective of this report is to identify the strengths and opportunities and to create a direction for Ryanair to overcome their weaknesses and threats from both internal and the external environment.
External Environment Analysis
Macro Environment Analysis
The decisions of the managers of an organization can be influenced by many external factors such as new laws, tax changes, demographic changes; new government policy’s and trade barriers. So it is important that these factors are being analyzed prior to making decisions in an organization. A PESTLE model can be used to analyze these factors. Below is a PESTLE...