Aim The aim of this report is to provide recommendation for how Ryanair can keep its continues growth and market in pursuing price cut and aggressive expansion in light of crippling fuel cost ,faltering demand of customer and global credit crisis challenging the airline industry in the European market. Objective The report set to achieve the following objective ; Analyse the macro environment pertaining to Ryanair strongest business model Analyse the micro environment of Ryanair .
Analyse the market and competitor in the airline industry
Observe the recent trends in the airline industry
Provide a recommended strategy for Ryanair in the European market
Intention The report intends achieve a solution to how Ryanair should have a success in the European market and how to deal with the threat of crippling fuel costs, faltering demand and the global credit crisis facing the airline industry. Methodology In order to answer the posed objective above the report will not deal with primary research but rather will focus on academic material, industry reports and review of the recent development especially in the European market .This report will used models to assess the both macro and micro environment. These are the models which will used achieved our objective .PESTLE model will used to assess the macro environmental conditions of the European market in respect to Ryanair operation that the external activities that Ryanair needs to deal with to help to draw strategy that have competitive advantage. Porter 5 force analyses of the airline industry which Ryanair is part of the industry, the SWOT model will be used to assess the internal aspect of the company and external aspect respectively and evaluate sustainable competitive advantage over its rival in the industry, the TOWS model will used to recommend strategy for Ryanair in respect in pursuing price decrease and aggressive expansion, also the emergent and prescriptive strategy processes regard to Ryanair. Scope This report will focuses on the airline industry particularly Ryanair a budget airline facing its loss in 20 years due to high cost of jet fuel and faltering demand.( Milmo, D 2008 the guardian). Ryanair is slashing its fares despite the above challenges facing the airline industry, but ryanair’s chief executive said the primary motive for the sale was to stimulate faltering demand rather than drive rival out of business. (Milmo, D 2008)The purpose of this report is how Ryanair can undergoes its massive expansion and launch a major price cuts programme aiming to shore up weakening demand at a time when Ryanair is warning of potential losses.(Arnott, S.2008,independent p,42)and how Ryanair can keep its market share and continues growth which in the sense of taking competitive advantage over its rivals in the European market. Background This report will be on the background information from the text, Ryanair launches price war as sales slump and the airline is facing its first loss in 20 years( Milmo, D.2004) in respect its aggressive expansion which facing are challenge of high oil prices, global recession and decline in the tourism industry how can Ryanair remain as the low fare airline which want to dump fare as down as can and how can its rival in the European market will respond to this aggressive action from Ryanair or can Ryanair take competitive advantage with its moves. Macro environment includes all the factor that have influence on an organization which the organization or the company have no control over, but they have an influence on the organization or the company externally.The following are components of the macro environment; political and legal economically socio-cultural technological environment factors in some marketing called the (PESTELE). Political & Legal factors have influence on the company concerning Ryanair its operation is within the European region and political stability in Europe is very...
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Kundnami, H.(2006) rivals attack ryanair as MEPcalls for inquiry. http:// www.guardian.co.uk/business/2006/jul/11/theairlineindustry.travelnews accessed on 20/11/2008.
Lavery, B.(2004) Price competition leads to profit from ryanair. http:// query. Nytimes.com /gst/fullpage. html?res=9c05E7D61338F93AA15752C0A96... Accessed on 20/11/2008.
Milmo, D. (2008). The Guardian, Friday August 8
Arnott, S.(2008) The Independent, Friday August 8 , p.42
Gergely, A. (2008) Thomson Reuters, Monday 28 July
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