Ryanair Macro Environment

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Consultancy Report
Part 1

Ryanair’s macro and competitive environments

Report compiled by:
Student: Egle Sukyte
Student number: 7124180
Course: Business Management with HRM
Unit title: Marketing (MKT 432), Level 2.

Table of Contents

1. Introduction.............................................................................1 2. Macro Environment – PESTLE Analysis...............................................1 3.1 Political forces......................................................................1 3.2 Economic forces....................................................................1 3.3 Social forces........................................................................2 3.4 Technological forces...............................................................2 3.5 Legal forces.........................................................................3 3.6 Environmental forces..............................................................3 3. Competitive Environment.............................................................4 4.7 Competitors.........................................................................4 4.8 Conclusion...........................................................................5 Appendices

Appendix 1..............................................................................6 Appendix 2..............................................................................7 Appendix 3..............................................................................8 Bibliography.............................................................................9

1. Introduction
This report studies one of the largest low cost airlines in Great Britain and Europe – Ryanair. This company is a 20-year-old international air carrier based in Dublin (Ireland), with 36 bases and 950+ low fare routes across 26 countries, connecting 151 destinations. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines business model. From the very beginning its strategy was to offer simple, low-cost fares and excellent customer service, which they can be proud of these days. REFERENCES The purpose of this report is to evaluate the market environment of the company by using PESTLE Analysis, which gives Ryanair the opportunity to identify the main factors affecting the industry. Moreover, it also analyses the impact on the business from the competitors and competitive environment. 2. Macro Environment – PESTLE Analysis

2.1 Political forces
* The increased Trade-Union pressure in Europe;
* The European Union expansion (the EU may be a big factor affecting the strategy planning for Ryanair, as the number of countries joining EU increases the number of countries for which they will need to supply their services); * Increased terroristic activities have leaded airline industry to tighten security measures. * Since the political situation in most major oil producing countries will stay unstable for the unpredicted future- the oil prices will stay a major problem for airlines. The fuel cost issue is getting worse by unpredictable currency exchange rate instability since aircraft fuel prices are denominate in US dollars. However, the weak dollar compared to pound sterling has had a positive impact for Ryanair. 2.2 Economic forces

In this factor business may be affected by:
* Recession, which surprisingly is good for Ryanair traffic growth because competitors have traffic falls, and are increasing their prices. As recession forces millions of passengers to focus on price, more and more passengers are attracted to Ryanair’s low cost fares model, and switching their “brand loyality” to more affordable Ryanair. More customer means profitability, which lets to keep the prices low and continue to grow. * Fuel price increases; at the...
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