Case Analysis on Ryan Air Essay Example | Topics and Well Written Essays - 2500 words

Case Analysis on Ryan Air - Essay Example The Ireland-UK market was Ryanair’s initial target market, which it successfully managed to capture. By 2003, however, its route system had expanded to serve 86 destinations on 133 routes across 16 different countries. The heart of Ryanair’s current strategy is based on providing no frills service with low fares designed to stimulate demand, particularly from budget conscious leisure and business travelers who might otherwise have used alternative forms of transportation or who might not have travelled at all. Another strategic position adopted is Ryanair’s point-to-point short haul flights. Ryanair chooses to fly to regional airports rather than the larger national airports due to the favorable cost terms received. This facilitates the passing of low fares and has the added bonus of being less congested therefore aiding in flight punctuality. This offers convenience to clients, especially those constantly undertaking business trips, in terms of time and cost. The possession of both Regional and secondary airports is another current strategy. Airport charges include: Landing fees, loading fees, aircraft parking fees and noise charges. By acquiring regional and secondary airports, Ryanair is able to reduce these fees. This is because these airports are less congested and are anxious to increase their passenger output. The external environment refers to the factors that are out of control of the firm. These are factors tat the firm cannot be able to control could be because of market forces among other reasons. The external environment within which a business operates has a great influence on its mode and extent of its operations. The PESTEL framework (Appendix A) categorizes environmental influence into six main types: Political, Economic, Social and Technological, Environmental and Legal (Johnson and Scholes, 2002). Focusing on the Political environment, there has been