Ryanairs Marketing Environment and Strategy Essays -- Business Manage

Ryanairs Marketing Environment and Strategy1 INTRODUTIONThe aim of this report is to carry out a investigation of Ryanairs immaterial environmentand a strategic summary of Ryanair, to identify opportunities andthreats it might face, and its strategic capability, to isolate keystrengths and any weaknesses that need dealing with. Finally, a SWOTanalysis will be carried out to assess the extent to which Ryanairsstrategies are suitable to what is happening in its task environment.Ryanair is Europes largest low-fares, no-frills short-haul carrier.The make-up was founded in 1985 as a conventional airline butre-launched itself in 1990/1991 as a low-cost carrier, replicatingAmerican Southwest Airlines business model. Since then Ryanair has braggart(a) substantially and successfully. The company currently has 146routes to 84 destinations in 16 countries, and carries more than 15million customers annually. Ryanair aims to be Europes largestairline in 8 years (www.ryanair.com).2 ANALYSIS OF T HE EXTERNAL ENVIRONMENT--------------------------------------This is a crucial part of a strategic analysis because organisationsdo not exist in a vacuum, they are part of a complex world and manyfactors can influence operations, beneficially and unfavourably.However, these can be difficult to comprehend payable to their complexity,diversity and fast changing nature. Necessarily a number of techniqueshave been developed to facilitate the process and to contribute toanswering the key managerial motilityof what opportunities andthreats might arise in the future (Johnson & Scholes 2002).2.1 PESTEL analysisThis identifies the main micro-environmental influences by classifyingthem into six groups Political, Economical, Socio-cultural,Technological, Environmental and Legal. By applying this framework toRyanair it is possible to summarise the key forces in the generalenvironment to present opportunities and threats to the organisation.Political= on May 1, 2003, it will mark one of the mo st important days inrecent European history, the continent will see the biggest expansionof EU to date when ten states become new members. For Ryanair newmarkets will open which suits its growth plans.= Stansted airport, owned by BAA, is one of the most rapidly growingairports in Europe (www.baa.co.uk/... ...) Low-cost airlines likely to resist higher fees tofinance Stanstead, The Financial propagationDone, K. (19/12/03) Stanstead outlines pounds 2bn plot to doublecapacity, The Financial TimesDone, K. (20/12/03) Challenge to airports operators monopoly remainseven with its friends in high places, The Financial TimesDone, K. (29/01/04) Ryanairs dream run comes to an end, TheFinancial TimesFelsted, A. (04/11/03) Can Michael OLeary sustain Ryanairs low-costsuccess?, The Financial TimesGow, D. (16/02/04)Ryanair plans zero(a) frills and fares, The GuardianHotten, R. (13/03/04) No-frills deal has impact on bmi, The TimesInsley, J. (18/01/04) Happy New Year for second homes, The revie werInsley, J. (08/02/04) You can make it if you try, The ObserverNewman, C. (03/12/03) Travellers face big rise in air passengerlevy, The Financial TimesPratley, N. (05/02/04) Clipped Wings, The GuardianTait, N. (03/12/03) Ryanair in court over wheelchair fee, TheFinancial TimesTran, M. (03/02/04) Ryanairs airport subsidies, The GuardianWright, R. (01/12/03) BA threat to sue if Stanstead gets runway, TheFinancial Times