Ryanair's Marketing Environment and Strategy Essays

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Ryanair’s Marketing Environment and Strategy

1 INTRODUTION

The aim of this report is to carry out a investigation of Ryanair’s external environment

and a strategic analysis of Ryanair, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in its task environment.

Ryanair is Europe’s largest low-fares, no-frills short-haul carrier.
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’
…show more content…
Stansted is Ryanair’s London base and an expansion would enable substantial traffic increases thereby facilitating consolidation
(Johnson & Scholes 2002).

= The Civil Aviation Authority (CAA) is responsible for setting
‘…price caps on airport charges…at airports designated by the
Secretary of State’ (www.caa.co.uk). One of these is Stansted, which has hitherto ‘…benefited from discounted airport charges and cross-subsidy from the higher charges paid by the airlines at Heathrow and Gatwick airports’ (Done 18/12/03). CAA’s new requirements command airport financing without cross-subsidisation on a stand-alone basis.
Consequently discounts will be removed and charges possibly increased.
Ryanair has protested as it will raise its costs (Done 20/10/03).

Economical

= Opec aims to keep oil prices within the agreed band of
US$22-US$28/bbl (www.opec.org). However, with crude oil now ‘…standing at close to $33 a barrel…’ (www.bbc.co.uk) near a 13-year high, Opec considers increasing its target. With a tight US gasoline market, low inventories and an upsurge in fighting in Iraq, oil prices look likely to remain high or rise Ryanair faces persistently high or rising fuel prices. Sociocultural

= Holiday home ownership in Europe is increasingly common for Britons.
During Christmas sales boomed and analysts believe it will continue as customers are ‘…encouraged by the highest employment

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