Ryan air was born in 1985. To build its strategy, obtain competitive advantages and to become a leader on this market, the company had to study different elements that the organization had to face. These are shown by the graph "layers of the business environment".
With the PESTEL method, we can determine the general environment of which the strategy business units are composed. Strategic business unit: This is a part of the organization for which there is a distinct external market for goods or service, which is different from any other strategic business unit. (Johnson and Scholes, 2005).
The company has many constraints to respect in carrying out its strategy. These factors can generate exceptional costs, changed dynamics, and notorious effect on the market: atomization, customer's service, passenger volume. Then, she must make good forecasts to adapt their budget and she must find new strategies to reinforce their position.
To face this external environment, Ryan air must understand the Key drivers of change: competition/rivalry in UK, and the growth of the market and the consumer demand. From that, and with the analysis of the five forces framework model, the company can identify the source of competition, and create competitive advantages.
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