Ryanair's Marketing Environment and Strategy

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Ryanair’s Marketing Environment and Strategy

1 INTRODUTION

The aim of this report is to carry out a investigation of Ryanair’s

external environment

and a strategic analysis of Ryanair, to identify opportunities and

threats it might face, and its strategic capability, to isolate key

strengths and any weaknesses that need dealing with. Finally, a SWOT

analysis will be carried out to assess the extent to which Ryanair’s

strategies are suitable to what is happening in its task environment.

Ryanair is Europe’s largest low-fares, no-frills short-haul carrier.

The organisation was founded in 1985 as a conventional airline but

re-launched itself in 1990/1991 as a low-cost carrier, replicating

American Southwest Airlines’ business model. Since then Ryanair has

grown substantially and successfully. The company currently has 146

routes to 84 destinations in 16 countries, and carries more than 15

million customers annually. Ryanair aims to be Europe’s largest

airline in 8 years (www.ryanair.com).

2 ANALYSIS OF THE EXTERNAL ENVIRONMENT

--------------------------------------

This is a crucial part of a strategic analysis because organisations

do not exist in a vacuum, they are part of a complex world and many

factors can influence operations, beneficially and unfavourably.

However, these can be difficult to comprehend due to their complexity,

diversity and fast changing nature. Necessarily a number of techniques

have been developed to facilitate the process and to ‘…contribute to

answering the key managerial question…’of what ‘…opportunities and

threats might arise in the future’ (Johnson & Scholes 2002).

2.1 PESTEL analysis

This identifies the main micro-environmental influences by classifying

them into six groups: Political, Economical, Socio-cultural,

Technological, Environmental and Legal. By applying this framework to

Ryanair it is possible to summarise the key forces in the general

environment to present opportunities and threats to the organisation.

Political

= on May 1, 2003, it will mark one of the most important days in

recent European history, the continent will see the biggest expansion

of EU to date when ten states become new members. For Ryanair new

markets will open which suits its growth plans.

= Stansted airport, owned by BAA, is one of the most rapidly growing

airports in Europe (www.baa.co.uk/...

... middle of paper ...

...) ‘Low-cost airlines likely to resist higher fees to

finance Stanstead’, The Financial Times

Done, K. (19/12/03) ‘Stanstead outlines pounds 2bn scheme to double

capacity’, The Financial Times

Done, K. (20/12/03) ‘Challenge to airports operator’s monopoly remains

even with its friends in high places’, The Financial Times

Done, K. (29/01/04) ‘Ryanair’s dream run comes to an end’, The

Financial Times

Felsted, A. (04/11/03) ‘Can Michael O’Leary sustain Ryanair’s low-cost

success?’, The Financial Times

Gow, D. (16/02/04)’Ryanair plans zero frills and fares’, The Guardian

Hotten, R. (13/03/04) ‘No-frills deal has impact on bmi’, The Times

Insley, J. (18/01/04) ‘Happy New Year for second homes’, The Observer

Insley, J. (08/02/04) ‘You can make it if you try’, The Observer

Newman, C. (03/12/03) ‘Travellers face big rise in air passenger

levy’, The Financial Times

Pratley, N. (05/02/04) ‘Clipped Wings’, The Guardian

Tait, N. (03/12/03) ‘Ryanair in court over wheelchair fee’, The

Financial Times

Tran, M. (03/02/04) ‘Ryanair’s airport subsidies’, The Guardian

Wright, R. (01/12/03) ‘BA threat to sue if Stanstead gets runway’, The

Financial Times

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