The Porter's Five Forces Analysis Of Ryanair

2202 Words5 Pages
bulb-icon

Recommended: Porter's five forces of relevance

The porter’s five forces framework is a tool that focuses on the macro environment of a business or company. In this case, I will focus on a leading low-cost airline in Europe which has been developing over the years due to the favorable strategic positioning of the company. The analysis of Europe as a country and the systems that affect it is also evaluated in the paper. However, the analysis will revolve around Ryanair as an airline in Europe and strategic analysis of the environment in terms of the Porter’s five framework analysis. Ryanair is ranked among one of the leading airlines in the European Union. Ryanair is located in Europe which creates the need to look into the political, economic, social, technological, legal and environmental (PESTEL) sectors of the Company. The linkage is evidently depicted as the market forces in Europe and how these affect Ryanair should be looked into. However in many instances not all of the issues will be relevant to a particular industry therefore one must concentrate on those issues that impact most significantly on the industry. By carrying out a PESTEL analysis on the industry we will be in a position to identify and understand the key factors which may have an effect on the strategic decisions to be made by companies operating within the industry such as Ryanair. Europe is a country that is stable, has potential for expansion, faces trade union push and taxes carbon for the global environment. The social environment experiences variations in the demographic setup therefore affecting the consumer’s preferences. Socially, the country has many short term trips with threats of terrorist attacks and environmental awareness is on the rise. Legally, there are stresses on emissions and l... ... middle of paper ... ...ontinue to search for modes to decrease the costs and ensure more booking is done online rather than on calls. As can be seen from the analysis above, the weaknesses like press vulnerability breaching from the poor customer services can be strengths and other threats like price sensitivity minimized through opting for traditional methods of air travel. Ryanair can evidently operate better and be better than the present situation. The opportunities and strengths practically outdo the threats and weaknesses which go to show that the present position of the company is favorable. Ryanair is located in Europe and can utilize this to their advantage as the position also gives it a competitive advantage. Ryanair is not yet there, but through flexibility, deeper analysis and different approaches will build on the strengths and opportunities, it can soar to greater heights.

Show More
Related

  • Lincoln Electric Company

    1203 Words  | 3 Pages

    In determining the competitive intensity and attractiveness of the market, Porter’s five forces is a framework that would help analyze the manufacturing industry of Lincoln Electric and observe the external and internal environmental factors that influence business strategy development for companies within the industry. The five forces are assumed to determine competitive power in a business situation in which these five forces are Supplier Power, Bargaining Power, Competitive Rivalry, Threat of Substitution, and Threat of New Entry.

    Read More

  • Qantas: Meeting the Needs of Customers Internationally

    1442 Words  | 3 Pages

    ... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.

    Read More

  • General Business Environment Analysis: Qantas Airways Limited

    1587 Words  | 4 Pages

    The five forces enable us to examine the industrial environment for Qantas Airways Limited operates under this circumstance and it also could affect the airline industry if they have no control for the first priority.

    Read More

  • Analysis of EasyJet's Business Drivers

    832 Words  | 2 Pages

    ...leader. Certainly, it has to take into account the implications of completion from both the direct and the indirect competitors. That is why EasyJet centers on the cost management strategy and the differentiation strategy (Hanlon, 2007). Through an analysis of EasyJet Airplane company strategies and performance, it is clear that they are ambitious and strive for the best. They not only survive in an industry that is intensely competitive, as shown through the analysis by Porter's Five Forces, but also succeed in terms of offering their customers the best that they have to offer in terms of value for money. The advantage this airline gains over its oligopolistic competitors stems from flexible ticketing and complete access to all primary routes. However, in keeping airline industry, there is room for improvement and growth as the analysis using Ansoff Matrix reveals.

    Read More

  • The Ryanair Case Study: The Importance Of Scientific Management

    1322 Words  | 3 Pages

    We can also identify the weaknesses of Ryanair in accordance to scientific management. From what we have previously discussed in the essay we now know that there are a few points from Douglas McGregor’s theory X that can relate to scientific management. However these key points also have influences on Ryanair, which can come across as

    Read More

  • Government Impact On Airline Industry

    1367 Words  | 3 Pages

    Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.

    Read More

  • Boeing/Airbus Case Analysis

    1860 Words  | 4 Pages

    With only a few large companies across the globe (Boeing, MD, and Airbus), the commercial aircraft industry essentially exhibits the qualities of an oligopolistic competition with intense rivalry. Here is an analysis of competition in the commercial aircraft business using Porter’s Five Forces.

    Read More

  • Strategic Analysis of Ryanair

    4040 Words  | 9 Pages

    The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, 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.

    Read More

  • Analysis Of British Airways

    1601 Words  | 4 Pages

    British Airways (BA) is the main and largest carrier airline of the United Kingdom. It’s headquarter is located in Waterside. The British Airways Group was established in 1972. It included British Overseas Airways Corporation (BOAC) and British European Airways (BEA). In 1974 British Airways was formed after the dissolution of BOAC and BEA (British Airways, 2015).

    Read More

  • Airline Sustainable Competitive Advantage

    1432 Words  | 3 Pages

    When an airline does not have a sustainable competitive advantage, it does not have any properties of differences from there competitor and turns to a dangerous price war. The sustainable ...

    Read More

  • Critical Reflection of the Porter Five Forces Concept

    1474 Words  | 3 Pages

    In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.

    Read More

  • The Airline Industry: SWOT

    882 Words  | 2 Pages

    The main opportunities that the scheduled air transportation will have in the next five years are the possible decrease of TSA agents at airports, technology increasing the safety and comfort of the flights for the passengers and the more availability of flights for the consumers to choose from limited airlines.... ... middle of paper ... ... Dixit, A. (2000).

    Read More

  • Essay On Pestle Analysis Of Air India

    1232 Words  | 3 Pages

    Every company in the market has to face the different challenges and try to cope with the challenges to come up with the strong idea to stay and survive in the market. Market is getting tougher and there are different factors which effect on the company policies and the strategies which the company is looking to apply. Some factors can be managed by the skills of the companies and can be tackled. These factors called internal factors but there are some factors which are very hard to tackle. They are out of control of the company but the alternative actions can be taken to avoid the consequences of the impacts. To analyze the external factors which are affecting the Air India airline, the pestle analysis can be used.

    Read More

  • PEST Analysis: The Indian Airline Industry

    1922 Words  | 4 Pages

    A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. Let us look at the PEST analysis of the Indian aviation sector:

    Read More

  • Chess Game Essay

    2145 Words  | 5 Pages

    ...d to learn from the chess game in terms of the ground rules and specific strategic management points of views. There are three common strategic principles and management expertises that the corporations need to be aware of and follow. First of all, it is highly advisable for them to conduct a macro environment evaluation through resorting to the PESTLE Analysis and the Porter’s Five Forces Model. Second, it is of significance to carry out self evaluation analysis with a view to better understanding the firms’ own advantages and capabilities through using SWOT Analysis. Last but not least, the corporation is advisable to conduct an all rounded competitor analysis in order to gain a detailed acknowledgement of the current circumstance possessed by the major competitors so as to assist them to generate a better corresponding strategies in the future business operation.

    Read More

More about The Porter's Five Forces Analysis Of Ryanair

Open Document