Ryanair External Env. Analysis

10045 words 41 pages

1.0 Introduction 1

2.0 Critical Issues Analysis 2

3.0 External Environment Analysis 2

3.1 Analysing the Macro Environment 2

3.1.1 PEST analysis 2

3.2 Industry Analysis 3

3.2.1 Five forces analysis 3

3.2.2 Porters Diamond Model 4

3.2.3 Strategic Group Analysis 4

3.2.4 Industry Life Cycle Analysis 5

3.2.5 Synthesis of External Factors (EFAS) 5

4.0 Internal Analysis 6

4.1 Value Chain Analysis 6

4.2 Internal Factors Analysis Summary (IFAS) 6

4.3 Ratio Analysis 7

5.0 External Environmental Evaluation 7

6.0 Internal Environmental Evaluation 8

6.1 Resources 9

6.2 Resources and Capabilities 9

6.3 SWOT Analysis 9

7.0 Conclusion 10

8.0 References 11

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Under this analysis, we are able to have in depth understanding about the profitability forces, changers of these forces and its affect to the organisation. According to the five forces model (Appendix 5 figure 3) we are able to analyse industrial environment in terms of main five components. Those are threat of new entrance, suppliers, buyers, substitutes and rivals. Under this analysis we are basically analysis of the impact of each those components on profitability in an industry.

Since this analysis method provide specific insights of organisational suppliers, competitors, customers, substitutes and industry trends; we can use this analysis method in analysing Ryanair industry environment. Ryanair five forces analysis is mentioned in Appendix 5.

3.2.2 Porters Diamond Model

This is another strategically analytical tool that is use for analysing organisational industry environment. In this analysis, entire industry environment is subjected to analysis base on four factors. Those are firm rivalry, demanding customers, favourable (supply) factors, and existence of related industries and supporting infrastructure. This model is suggest that any organisation should have a support all above mentioned four factors in developing world class industry.

Porter’s diamond model analysis for Ryanair is mentioned under Appendix 6.

3.2.3 Strategic Group Analysis

Strategic group analysis is another