Business environment analysis: Ryanair
Report: An Analysis of Ryanair’s business environment
Introduction:
Ryanair is Europe’s leading low cost airline. It currently operates over 1600 flights per day to 180 destinations in 29 countries. It has achieved this through developing and marketing itself as Europe’s only ultra-low cost carrier (ULCC). This has seen its profits rise by 13% for the fiscal year ending 2013 to over €569million and its passenger traffic grow by 5% to over 79.3 million people, this being in spite of an increase in fuel cost by €292million.
In this report we will carry out both an Industrial and an Environmental analysis of Ryanair with the help of a number of academic analysis tools and frameworks which will help us to examine both the Micro and the Macro environment in which the organisation operates.
Micro-Enviroment
Firstly we will examine the Micro-Environment in which Ryanair operates and the numerous factors which affect it through the use of a SWOT analysis. If we look at the work of Hitt, Black and Porter (2009) we can see that they set out a SWOT analysis as:
“A SWOT analysis approach to integrate the separate analyses requires managers to consider their firm’s strengths (S), weakness (W), along with opportunities (O) and treat’s (T) for its continued operation. SWOT analysis is a basic framework for integrating the result of analyses that guide the formulation of an appropriate strategy.”
(Hitt, Black and Porter, 2009, p.149)
We can see from the above quote that a SWOT analysis of an organisation essentially involves the organisation identifying what its main strengths and weaknesses are as well as what opportunities it may be able to exploit and what treat’s it must protect itself from. After the gathering of all this information, the SWOT framework can then be used as a guidance tool for the organisation in its strategic planning.
We will now set out a SWOT analysis for Ryanair as follows:
Strengths:
Strong Brand Name
Ryanair has been able to build a
Introduction:
Ryanair is Europe’s leading low cost airline. It currently operates over 1600 flights per day to 180 destinations in 29 countries. It has achieved this through developing and marketing itself as Europe’s only ultra-low cost carrier (ULCC). This has seen its profits rise by 13% for the fiscal year ending 2013 to over €569million and its passenger traffic grow by 5% to over 79.3 million people, this being in spite of an increase in fuel cost by €292million.
In this report we will carry out both an Industrial and an Environmental analysis of Ryanair with the help of a number of academic analysis tools and frameworks which will help us to examine both the Micro and the Macro environment in which the organisation operates.
Micro-Enviroment
Firstly we will examine the Micro-Environment in which Ryanair operates and the numerous factors which affect it through the use of a SWOT analysis. If we look at the work of Hitt, Black and Porter (2009) we can see that they set out a SWOT analysis as:
“A SWOT analysis approach to integrate the separate analyses requires managers to consider their firm’s strengths (S), weakness (W), along with opportunities (O) and treat’s (T) for its continued operation. SWOT analysis is a basic framework for integrating the result of analyses that guide the formulation of an appropriate strategy.”
(Hitt, Black and Porter, 2009, p.149)
We can see from the above quote that a SWOT analysis of an organisation essentially involves the organisation identifying what its main strengths and weaknesses are as well as what opportunities it may be able to exploit and what treat’s it must protect itself from. After the gathering of all this information, the SWOT framework can then be used as a guidance tool for the organisation in its strategic planning.
We will now set out a SWOT analysis for Ryanair as follows:
Strengths:
Strong Brand Name
Ryanair has been able to build a