Write 10 page essay on the topic Corporate Strategy of Ryan Air.
It further looks into the various ways of ensuring strategies are implemented despite certain barriers to it.
Ryanair was established at a time when airlines were closing their doors due to high competition, fluctuations in profits and general market uncertainties. It is true that these factors had affected many airlines but those most hit were big carriers like British Airways which in turn offered a market opportunity to Ryanair. During the 2nd half of the 1980s airlines abandoned the ordinary population to venture into bigger markets. These flag carriers went to target budget commuters who were mostly wanted long-haul flights. At the onset of the 1990s Ryanair noted these developments and restyled to become the first low cost and low fares airline with no frills in the European skies (Miriam 2010). This model was directly borrowed from the United States’ low fares Southwest Airlines. Ryanair’s strategy was immensely successful owing to the customers’ discontentment with the high fares being charged by big carriers. At this time the Irish economy was growing fast and Ryanair being an Irish airline this worked to its advantage in the home market as this industry is hugely affected by economic swings. In order to specifically consider Ryanair’s business environment PEST analysis will be used.
Political factors. Changes in government policies and even those of EU have affected the way airlines operate in continental Europe. Ryanair’s numerous court cases regarding unfair market practices have worsened this situation. On the other hand, governments which are looking into tourism expansion e.g. Greece have welcomed the airline by boosting its ticket sales and route expansion. Governments in the EU seem to favor their flag carriers which affect low fares airlines like Ryanair. Global climatic awareness has resulted in various charges to airlines.