Advantages Of Ryanair

Nowadays, globalization has facilitated the expansion of business throughout the world. However, the business environment has become more competitive. For a company to be fruitful and profitable, it is necessary to have a solid strategy aligned with the interests and objectives of the company taking into consideration the external environment factors. In this report, the organisation Ryanair is going to be analyzed.
First of all, it is important to have clear what does strategy mean. According to Porter (2008) “strategy is the creation of a unique and valuable position, involving a different set of activities. Is creating fit among a company’s activities”.
Moreover, we can say that “an action is strategic when it allows a firm to become better

Corporations need a competitive advantage in order to differentiate itsself from the others with a premium price or with a low cost. (Kim and Mauborgne, 2009). As it can be identified, the competitive advantage of Ryanair is to have low cost prices, which has been the its key factor for success.
There are two approachs that determine which strategy companies will use. The first one is the structuralist approach which states that “a firm performance depends on its conducts, which in turn depends on basic structural factors such as number of suppliers, buyers and barries to entry. The second approach states that firms strategies shape structure”. (Kim & Mauborgne, 2009). When conducting a strategy is important to consider environmental factors, as this have a high impact on success or failure of it.
In this section, internal and external factors will be analyzed in order to know which is the strategic position of the airline. The tools used for this purpose are the SWOT and the PESTLE

1.3.1 PESTEL Analysis
The PESTEL Analysis is a tool for identifying the external factors that affect the Company. It is important to mention that the future is uncertain, so that is why is necessary to analyze the blue and red oceans in order to anticipate the future.
2.1.1 Political Factors
The industry has been under political influence, because it operates in the European Union which shares laws, governement legislations, taxes, general policies, security controls, migration law and regulations which determine the operation of Ryanair.
“EU regulations were introduced to reduce the inconvenience caused to air passengers by delays, cancelations of flights and denied boarding and also EU government abolished the sales of duty free goods” (Hedge, 2015).
Moreover, it is important to consider that political conflicts and situations of each country modify the security systems at airports. For example, the terorrist attacks that occurred in USA in September 2001 and terrorist attacks occurred in Europe have set new security measures and restrictions for Airlines and