MA722AssgntThree(3) MNG93002 Strategy and Case Analysis Assessment 2 Due Date: 9:00 am, Monday, April 13, 2020 Value: 40% (marked out of 40) Instructions: This assessment focuses on the student’s...

Running Head: Case Analysis of Ryanai
Case: Ryanai
TOPIC: CASE ANALYSIS OF RYANAIR
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Executive Summary
This report examines the European airlines Ryanair. This report aims to conduct a strategic investigation of the environment, industry, and company. This report includes a competitive-forces analysis of Ryanair to determine the European airline industry attractiveness as well as how Ryannair need to manage the competitive-forces company faces. A PESTEL analysis of Ryannair airlines is done to develop scenario analysis targeted in 2030. This report explains which scenario represents greatest threat to the Ryannair after that which one represents greatest opportunity for Ryanair airline is also included in this report. A VRIO analysis to conduct to determine the capabilities and resources of Ryannair and a Strategic Position analysis is done to inform the Strategic Choices Ryannair must adopt to enhance its chances of being steadily profitable.
Contents
Introduction    4
Part 1: Competitive-forces analysis    4
PESTLE Analysis of Ryanair    5
VRIO analysis    9
STRATEGY CHOICES    10
Conclusion    13
References    14
Introduction
Overview of the Company
Ryanair DAC is one of the best Irish budget airlines founded in the year 1984, headquartered in Dublin, with primary operational bases located at Dublin as well as London Stansted airports. Ryanair forms one of the largest part of Ryanair Holdings family of the airlines, moreover has Ryanair UK, Malta Air, Buzz, as well as Lauda as sister airlines. Ryanair is working since 1985 when there were only 57 staff members, and also with 15-seater of tu
oprop flew from southern Ireland to Gatwick Airport (London) with nearly5, 000 travelers on single route.
Competitive-forces analysis
For Ryanair, porters' five forces analysis of these factors are as follows:
Buyer's bargaining power: Buyers have high bargaining power in airline industry because they have several options, for example advanced and improved air travel services, very low-cost air travelling services, etc. There are various service providers that provide these unique services to increase the buyer’s purchasing power.
Bargaining power of the suppliers-As various suppliers provide same services, the bargaining power of suppliers in the airline industry is low. On Ryanair, the price is lower just because of the some major airlines exists in the airline industry like Virgin Atlantic.
Alternative threats: As far as alternative threats are concerned, it is lower for airline industry because the air travel model or framework is a fast method to offer travel services over the longer distances that are not possible by distance and water transport. Hence, threat of substitution is less.
Competition between the existing companies: This is crucial for the Ryanair industry, as the cu
ent situation shows that Ryanair is directly competing with Virgin Atlantic in a domestic market; moreover the competition extremely fierce that these airlines are bearing the loss their business operation.
The threat of the new entry: Regarding the threat of the new entry, the threat in the airline industry is low, mainly the new participants need to invest large amount of money in the infrastructure to build airline, which will be difficult to implement.
PESTLE Analysis of Ryanai
Political
Even if future rules governing air traffic between EU countries and the UK are not accurate, if the deal fails to make sure restriction-free flights between EU and the UK, this political consequence may reduce European Union Airlines' access to the United Kingdom market. Will also lose their restricted access to the European Union) (Av Vision Voice, 2017). Ryanair is an aircraft registered in Ireland, however, as the airline maintains a large base in the United Kingdom, adverse Brexit consequences can negatively impact not only Ryanair but also the operations of the low-cost airlines in the United Kingdom (Kilpatrick, २०१ 2017)
Financial
It is inevitable that low-cost airlines will decrease or reduce their total earning potential in the United Kingdom market (because of the close co
elation between financial performance as well as demand), given the UK's recession after full departure from the European Union (Rodinova, 2017). However, it is never expected that the UK financial problems will have a significant impact on EU financial performance, so that UK-based airlines can shift their base in the European Union (to gain potential growth opportunities) be capable to manage Brexit-urged economic uncertainty in low-cost airlines industry ( Buffet, 2017)
Socio-cultural
The expansion of the low cost airlines is mostly due to the high increase in disposable profits of the middle class and lifestyle changes which enable Generation Y travelers to take various short-trips every year (BCG, 5). Unlike previous generation passengers, the generation of wifes has completely different expectations: thousands of people expect high levels of the customer service without paying a best, as well as generally consider the importance of airlines providing advanced technology solutions for managing passenger technology.
Technical
In the context of the social changes happening in the airlines industry, there is high growing evidence that just those airlines that are capable to put together digital channels into overall their distribution as well as marketing strategies. Previous generations for example Generation X have given less emphasis to technology, even though, technology is very important for Generation Y travellers (Accenture, 2017). Generation Y passengers want to be in constant contact with their complete social environment, which recommends that airlines must adopt a diverse digital communication technique and strategy to reach out the targeted audience. In addition, increased dependence on technology gives airlines the opportunity to deeply analyze customer behavior through voluntary shared analytics of customer statistics on digital platforms for example social media.
Environmental
One of the most recent concerns about the industry is that while heat waves are occu
ing frequently (aircraft temperature is rising above the ground for more groundwater reasons), airlines may need to seek alternative operation strategies to accommodate climate change (Perkins & Vryinsky, 2017). Although Rainier uses a modern and fuel efficient aircraft fleet, there is increasing concern about low-cost airlines contributing to ca
on emissions.
Legal
The legal challenge that plagues the European Airlines industry is revolving around the Brexit referendum (FT.com, 1). In addition to the political and financial uncertainty of the UK, UK controls the...