Environmental and strategic analysis Free Essay Example, 2500 words

ntroduction Ryanair being the low cost Irish airline has its headquarters situated in Dublin. It has the largest operation bases in London Stanstedand Dublin international Airport. The airline was founded in 1985 and it was named after one of the numerous owners; Christy Ryan. Since then the airline has been growing up to date when it put up its strategic plan to have be the lowest cost airline in Europe. Currently, it operates on around 729 routes in North Africa and Europe. It has 31 bases and 168 aircrafts. It should be noted that Ryanair airline is the third largest airline in attracting numerous passengers in Europe. This is due to its low cost strategy. Like any other company, when the management makes decisions it has to be guided by different factors that directly or indirectly affect the company. All organisations are affected by external and internal factors and like any other company, Ryanair is not left behind. It is advisable for the airline to use the PEST analysis to view its policy making strategies thus look at how the company is performing to ensure that it does not lose market. We will write a custom essay sample on Environmental and strategic analysis or any topic specifically for you Only $17.96 $11.86/pageorder now Such analyses will ensure that the management is able to keep, ignore and adapt strategies to make the company more competitive and unique (West, 2007). The paper will examine Ryanair airline by using Porter’s 5 forces and McKenzie 7s framework. Porter’s 5 forces To understand how Ryanair Airline has been able to survive to the resent times it is advisable to use Porter’s 5 forces analysis to critically examine its strategies. The strategy and its concepts came from Michael Porter. The 5 forces were derived from Industrial Organisation economics which generally helps a company to know its intensity in competition moreover show what attracted the company to join the market. It should be noted that the amount of profit is what attracts the company to the market whereas unattractiveness is simply the implementations of poor strategies that lead to a loss. According to the forces, when a company approaches pure competition it means that it is becoming unattractive. According to Porter such implementations are referred to as micro environment which are within the company and they do affect how a company is able to reach its customers. Customer service provision is what brings about profit in the company (McGahan, 2004, pp. 203-205). The s tages of the framework are discussed below step by step. Threat of substitute products According to the strategy, a company can decide to offer products or services that will act as substitutes to change the demand of its customers.