Strategic Management Module
Ryanair Case Study Questions
This report will prioritise to address clearly how to analyse and evaluate the findings of two questions. The selected company that will be used when completing this task is Ryanair which is known as 'the low cost fare airlines'. (Seminar Case Study, 2013).
The first question is as follows; 'With reference to the Airline Industry and Ryanair cases analyse the competitive environment of the European airline industry in which Ryanair operates'.
Introduction
European Airline Industry is controlled by the Association of European Airlines which operates together with 31 most popular airlines and has been supporting the industry over 50 years. In order to sustain constant
Boeing 737 Airplane is a new generation engines that specialises in less emissions and less fuel consumption which allow Ryanair to move on through its cost reduction strategy. (Seminar Case Study, 2013 p.p 623)
Environmental Factors
EU has become very sensitive about emission and noise pollution; therefore in order to prevent the aviation industry EU has introduced Emissions Trading Scheme in 2012. Ryanair was expected to be the most harmfully affected airline in the world with a shortfall of 2.8 tonnes in co2 allowance which is equivalent to €40 million in extra costs. Therefore, they have agreed to declare that this scheme should apply to efficient carries as despite to their minimal pollution aircraft. (Seminar Case Study, 2013 p.p 626 )
Legal
The EU Airline Industry operates within the law system, the main two areas this industry considers is the employment law and the consumer protection law. EU legislation has become tougher with their regulations and widened their potential to ensure consumers are happier in return of their flight investments. A recent new legislation introduced on 17 February 2005, EU regulation makes sure consumers are paid their full compensation due to any delays, cancellations and denied boarding. (Seminar Case Study, 2013 p.p 625) Consumers who fly with Ryanair is entitle to similar obligations, therefore these increases Ryanair’s compensation to fall under cost of 250 euro which is based on the average distance of its flights.