Samsung Ansoff Matrix and Generic Strategies
Ryan air, an Irish airline started in 1985 by Ryan family with a capital share of £1 and a staff of 25. Over the past few years the company has shown tremendous ontogeny. Indeed it is Europe's largest low cost carrier and fastest growing airlines. Currently it’s operating more than 1,500 flights every day from over 50 bases and around 1400 low fare routes across 28 countries which connect 165 destinations.
Now I am going to discuss Ryan air’s (RA) current strategic position by analysing its macro (external)and micro (internal) environment.
Macro Environment
Macro environment consist of those major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies.
Now, i am going to analyse company’s position by using PESTLE and porter’s 5 Forces.
Pestle Analysis:
This is mainly used to analyse the wider macro environment in which the business operates. The organisation normally have no control over PESTLE factors and at best should try to accommodate and device strategies around these factors or issues.
Political factors:
The political environment in EU has been stable, enabling Ryan air to expand its routes and activities successfully. The increase in Air Passenger Duty in UK in 2009, 2010 and 2012 (£11, 12, 13 ) and the EU Airport Charges applicable from March 2011 have affected the operating costs of Ryan air consequently. The repeated European government owned Air Traffic Control strikes have also caused a huge loss for airline industry as these strikes forced RA to cancel huge number of flights. Ryanair also had to pay compensation to passengers based on EU 261 reforms.
Economic factors
The interest rates in England is 0.5% which has a positive affect and will encourage RA to borrow money on low interest rates to expand their business activities. (buying air crafts etc.) The high unemployment rate in EU and UK has resulted in less people travelling even by low-fare airiness. This has a
Now I am going to discuss Ryan air’s (RA) current strategic position by analysing its macro (external)and micro (internal) environment.
Macro Environment
Macro environment consist of those major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies.
Now, i am going to analyse company’s position by using PESTLE and porter’s 5 Forces.
Pestle Analysis:
This is mainly used to analyse the wider macro environment in which the business operates. The organisation normally have no control over PESTLE factors and at best should try to accommodate and device strategies around these factors or issues.
Political factors:
The political environment in EU has been stable, enabling Ryan air to expand its routes and activities successfully. The increase in Air Passenger Duty in UK in 2009, 2010 and 2012 (£11, 12, 13 ) and the EU Airport Charges applicable from March 2011 have affected the operating costs of Ryan air consequently. The repeated European government owned Air Traffic Control strikes have also caused a huge loss for airline industry as these strikes forced RA to cancel huge number of flights. Ryanair also had to pay compensation to passengers based on EU 261 reforms.
Economic factors
The interest rates in England is 0.5% which has a positive affect and will encourage RA to borrow money on low interest rates to expand their business activities. (buying air crafts etc.) The high unemployment rate in EU and UK has resulted in less people travelling even by low-fare airiness. This has a