This paper is focusing on one of the leading low cost airlines Ryanair and its market strategy keeping in mind the micro and macro environment analysis of the airline sector in the UK and in the EU. The purpose of this paper is to propose suitable strategies for Ryanair so that the company acquire competitive edge over its rivals.
Success of any organisation is dependent on proper business planning and development. It is necessary for the top management of the organisation to make sure that they do an in-depth internal and external analysis before designing a proper business strategy for the expansion of the business or improving the state of the business. The concept of strategic management is a process of managing resources associated with the organisation to achieve business goal and objectives both in short and long term basis (Varbanova, 2013)There are two distinct school of thoughts associated with the process of strategic management. One is the prescriptive approach which discuss about how the strategies are developed by the top management in the organisation. Another important point associated with the strategic management is the descriptive approach which discusses about the process of implementing the strategies into practice (Kachru, 2009).
This paper is focusing on one of the leading low cost airlines Ryanair and its market strategy keeping in mind the micro and macro environment analysis of the airline sector in the UK and in the EU.
Ryanair is one of the leading low cost airlines in the UK and European market. The organisation started its operation in 1985. It started as one stop airlines and now become one of the leading airlines in the European market. There were more than 8500 employees associated with this organisation till 2012 and the number is increasing continuously. The organisation introduced a revolutionary step in the UK and European airline industry from 1990 to 1993, by starting low cost approach in this sector and introduce itself as Europe’s first low cost airline service provider (Ryanair: About US 2014). The organisation continued its expansion strategy from 2005 to 2012 by reaching out to most of the European routes and increases its number of passenger from 34,768,813 to79, 325,820 by investing in 175 Boeing aircraft (Mintel, Airlines, 2014). Here is the financial overview of the organisation for the financial year 2016:
Generally there are two distinct environmental scenarios associated with the business operation analysis and those are macro and micro environment. Macro analysis associated with a detail description and review of various external factors which affects the business operation of any organisation but the organisation cannot control the same. It only can change and modify its business strategies to control the impact of the same (Jockers, 2013). Jockers (2013) in his review has also mentioned that PEST analysis is one of the most well-known tools for the macro analysis. It helps to analyse the 4 key external factors under which organisation is operating namely political, social, economical and technological.