Strategic Analysis for Ryanair to Enter China

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Strategic Analysis for Ryanair to Enter China

Submitted in part fulfilment of the Master September 2010

STRATEGIC BUSINESS ANALYSIS (ULMS 719)
University of Liverpool Management School
17 September 2010

Abstract

Ryanair, the leader of low-fare carriers in Europe, will expand its business throughout the world. This report discusses the strategies which Ryanair entre the Chinese market. Through PESTEL analysis and SWOT analysis to have sophisticated understandings of the Chinese market situation and the civil aviation environment, then after a series of considerations, eventually, Ryanair makes the decision to cooperate with China Southern Airlines in the form of a joint venture. Based on this, Ryanair has set up plenty of adequate business strategies that are composed of market targeting strategy, price strategy and marketing strategy in order to successfully enter the Chinese market.

Keywords: Ryanair; China; Strategic analysis

Table of Contents

Abstract ----------------------------------------------------------------------------------------------i List of Tables and Figures------------------------------------------------------------------------iv 1. Introduction-------------------------------------------------------------------------------------1 2. Overview of Ryanair -------------------------------------------------------------------------2 2.1 General introduction of Ryanair-------------------------------------------------------------2 2.2 Ryanair’s competitive advantages ----------------------------------------------------------4 3. Strategic analysis --------------------------------------------------------------------------------6 3.1 External environment-PESTEL Analysis ----------------------------------------------7 3.1.1 Political ------------------------------------------------------------------------------------7 3.1.2 Economic-----------------------------------------------------------------------------------8 3.1.3 Social --------------------------------------------------------------------------------------10 3.1.4 Technology--------------------------------------------------------------------------------11 3.1.5 Environment-------------------------------------------------------------------------------12 3.1.6 Legal ---------------------------------------------------------------------------------------13 3.2 Internal Environment-SWOT Analysis-------------------------------------------------14 3.2.1 Strengths ----------------------------------------------------------------------------------15 3.2.2Weaknesses---------------------------------------------------------------------------------17 3.2.3 Opportunities------------------------------------------------------------------------------18 3.2.4 Threats--------------------------------------------------------------------------------------19 3.3 Summary -------------------------------------------------------------------------------------20 4. Business Strategic--------------------------------------------------------------------------------21 4.1 Entry Mode Strategy------------------------------------------------------------------------21 4.1.1Problems that may cause --------------------------------------------------------------21 4.1.2 Joint Venture ----------------------------------------------------------------------------22 4.1.2.1 Brief introduction of Joint Venture ------------------------------------------------22 4.1.2.2 Partner-China Southern Airlines ---------------------------------------------------23 4.2 Market Targeting strategy -----------------------------------------------------------------25 4.3 Pricing Strategy -----------------------------------------------------------------------------26 4.3.1 The level of highest price --------------------------------------------------------------27 4.3.2 The level of lowest price ---------------------------------------------------------------27...
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