This study looks at external and internal key influences of the environment of the Ryanair Company.
This is as a first step important to come up with strategies, which Ryanair could take to stay as
successful as they are right now.
The first chapter starts with an analysis (PESTEL) of the external environment (macro-environmental),
which includes all the external factors such as economic, political, legal, technological, ecological and sociocultural, that can exert direct and indirect pressure on both domestic and international marketing
activities. The second chapter goes on with a critical evaluation of the firm’s current and anticipated
internal environment (micro-environmental) with respect to its objectives and performance, allocation of
resources, structural characteristics, and political power. Therefore the SWOT Analysis is used as well
as the Value Chain Analysis. The last point in this part is the identification of core competencies of
Ryanair. Furthermore the Porter’s Five Forces Method is used for identifying the market structure in
which Ryanair is operating. The Competitor Analysis follows this. Finally, the last section gives a brief
summary with important concluding remarks.
What has to be stated is that in the following 15 pages just a rough overview of the main points of this
assignment is given. Further details are important to evaluate everything and this is given in the
appendix.
Table of Contents
1 Introduction
2 Key External Influences
3 Key Internal Influences
4 Market Structure
5 Competitor Analysis
6 Development of Strategic Direction
7 International Marketing Strategy
8 Conclusion
Research Objectives and Core Themes
This thesis examines the external and internal environment of Ryanair, aiming to identify the strategic factors that have contributed to the company's remarkable growth and to propose future strategies to maintain its competitive market position as Europe's leading low-fares carrier.
- Analysis of external macro-environmental factors using the PESTEL framework.
- Evaluation of internal resources and competencies via SWOT and Value Chain Analysis.
- Identification of market structure and competitive dynamics using Porter’s Five Forces.
- Strategic planning for future growth, market expansion, and differentiation.
Excerpt from the Book
1 Introduction
The choice of studying the Ryanair Company is driven by the fact that Ryanair is undoubtedly one of the most remarkable entrepreneurial stories of the past 10 years in Europe. Furthermore that Ryanair has developed a very outspoken communication style, using advertising and media to a great deal to publicize its ‘revolution’ in air travel.
Ryanair was Europe’s original low-fares airline and it is still Europe’s largest low-fares carrier. In the current year Ryanair will carry over 35m. passengers on 300 low fare routes across 21 European countries. Ryanair has 15 European bases and a fleet of over 100 brand new Boeing 737-800 aircraft, with firm orders for a further 125 new aircraft, which will be delivered over the next seven years. These additional aircraft will allow Ryanair to double in size to over 70m. passengers p.a. by 2012. Ryanair currently employs a team of 2,700 people, comprising over 25 different nationalities. Furthermore Ryanair continues a rapid growth in 2005. They started the year by launching two new bases at Liverpool John Lennon Airport and at Shannon in the West of Ireland. In February Ryanair announced orders for a further 70 firm aircraft from Boeing as well as 70 options. This takes Ryanair’s total order with Boeing to 225 firm aircraft and 200 options. These new aircraft, which will be delivered between 2005 and 2012, will allow Ryanair to grow to over 70m. passengers per annum, proving that Ryanair is not just Europe’s original low fares airline, but remains Europe’s biggest low fares airline, as well as the only airline offering the lowest fares in every European market.
Summary of Chapters
1 Introduction: Provides an overview of Ryanair as a market leader in the European low-fares sector and outlines the research scope, including external and internal environment analyses.
2 Key External Influences: Examines macro-environmental factors using PESTEL to identify key strategic areas of change that affect the airline industry.
3 Key Internal Influences: Conducts an internal appraisal of Ryanair’s strengths and weaknesses using SWOT and Value Chain Analysis to identify core competencies.
4 Market Structure: Evaluates the competitive industry environment using Porter’s Five Forces model to assess rivalry, supplier power, buyer power, and threat of entrants.
5 Competitor Analysis: Identifies primary and secondary competitors, focusing on a comparative analysis with easyJet and Aer Lingus.
6 Development of Strategic Direction: Utilizes the TOWS Matrix to match external opportunities and threats with internal capabilities to formulate future strategic alternatives.
7 International Marketing Strategy: Details Ryanair’s product, pricing, distribution, and promotional policies designed to maintain cost leadership.
8 Conclusion: Synthesizes the findings and emphasizes the necessity of combining low-cost operations with differentiation for long-term success.
Keywords
Ryanair, Low-fares airline, Strategic Management, PESTEL Analysis, SWOT Analysis, Value Chain, Porter's Five Forces, Competitive Advantage, Market Expansion, Ancillary services, Cost leadership, Differentiation, Airline industry, Marketing Strategy, Growth.
Frequently Asked Questions
What is the primary focus of this thesis?
The thesis focuses on the marketing and strategic planning of Ryanair, specifically analyzing how the company maintains its status as Europe's largest low-fares airline.
What analytical frameworks are utilized in the work?
The study employs several management tools including PESTEL for macro-environmental factors, SWOT for internal assessment, Value Chain Analysis, Porter's Five Forces for market structure, and the TOWS Matrix for strategic development.
What is the main objective of the research?
The objective is to evaluate Ryanair's current competitive position and develop strategies that allow the airline to remain successful and sustainable amidst increasing competition.
How is the methodology structured?
The methodology involves a situational analysis followed by the development of strategic directions and international marketing strategies, supported by a detailed appendix of industry data.
What does the main body cover?
It covers the external and internal key influences, competitor benchmarking, market structure analysis, and specific product, pricing, distribution, and promotional strategies.
What are the key terms that characterize this work?
Key terms include cost leadership, market penetration, ancillary revenues, strategic alliances, and competitive rivalry.
How does Ryanair maintain its cost leadership in the market?
Ryanair utilizes a standardized fleet, secondary airports, online-only distribution, and an ultra-flat management structure to keep operational costs significantly lower than traditional carriers.
Why is the "Value Chain Analysis" important for Ryanair?
It helps in identifying which primary and support activities create the most value for the customer and how these activities can be optimized to reinforce the cost-leadership strategy.
What role does the Internet play in Ryanair's distribution?
The Internet is Ryanair's primary distribution channel, significantly reducing costs by bypassing travel agents, facilitating direct sales, and providing a platform for ancillary services.
How does the thesis view the competition with easyJet?
The thesis identifies easyJet as the primary competitor and provides a detailed comparison of their business models, fleet sizes, and market performance.
- Quote paper
- Kathrin C. Hägele (Author), 2006, Marketing Plan for Ryanair, Munich, GRIN Verlag, https://www.grin.com/document/55005
