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Analysis on Ryan Air - Case Study Example

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Analysis on Ryan Air

Thus, in 2004, the company's short-term market orientation involved segmenting by lifestyle and by income bracket in the European marketplace in order to appeal to a broader target consumer audience.
The key stakeholders in the firm include all staff members responsible for carrying out strategic objectives, the communities in which Ryanair thrives, as well as the customers who frequent Ryanair as their low-cost carrier of choice. Satisfying the stakeholder appears to be the firm's long-term mission in Europe in lieu of having no established, formalised mission or vision statement. Lack of such a mission or vision may be involved in the rationale for why Ryanair experienced sales declines in 2004, however this will be discussed in further detail in this case analysis report.
This report will highlight factors in both the internal and external business environment which are plaguing Ryanair in terms of maintaining a strategic orientation that is completely congruent with sales goals and growth initiatives. A micro- and macro-level analysis of the firm in 2004 is proposed in this report.
PEST analysis is an acronym for political, economic, social an...
Each of the aforementioned forces are categorised by a particular macro-level external influence, each of which directly impacts strategic direction at Ryanair. The external political environment is one of significant advantage to Ryanair, as the majority of its operations are contained within Europe. It is relatively common knowledge that this region maintains political stability, thus Ryanair does not experience issues with governmental instability in Europe as a concern regarding passenger volumes or flight destinations.
However, outside of the European marketplace, the firm maintains significant economic difficulties posed by political forces such as OPEC, the organisation responsible for oil production in the Middle East. As the majority of international revenues in the Mid-East regions stem from oil and oil production/distribution, the current methodology of global supply chain (in relation to where oil is delivered based on price and overall demand) incurs large-scale costs to Ryanair who, like other business entities, is unable to secure low-cost fuel due to political forces which drive oil distribution. This assessment of the external political environment is well-supported by Ryanair documentation highlighting 2004 as a year of challenges stemming largely from the cost of oil which continued to escalate in this particular period (Annual Report, 2004).
The economic environment in which Ryanair thrives in 2004 is relatively stable in terms of maintaining operations successfully and contributing to the financial well-being of European nations in the process. The European Union, consisting of a large quantity of developed countries in Europe, maintains a high value for its integrated currencies, suggesting that this region is ...Show more

Summary

Ryanair, a low-cost, no-frills airline carrier operating in the European airline marketplace, experienced measurable drops in consumer patronage volumes and overall service revenues in 2004. This represented a significant change after 26 consecutive quarters of total company growth…
Author : bradfordmaggio
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