Ryanair the low-fares airline (Stratigic management) Assignment

Ryanair the low-fares airline (Stratigic management) - Assignment Example The balance sheet of the company shows that there has been a steady increase in the organisations net profit from 2006. The organisation is regarded as the world’s most profitable airline and this can be attributed to its strategic position in the budget airline industry. However, despite showing positive signs of growth in the industry, it has been recommended that Ryanair should embark on a drive to improve its marketing and communication strategies since it has been receiving negative media coverage. There is need to portray a positive image of and counter the negative publicity given to the airline by the media. It has also been recommended that the airline should strive to improve its industrial relations given that the employees are not fairly treated in this particular case. Employees should be treated as valuable assets in the organisation to ensure its viability. ... anair’s competitors-------------------------------------------------------------9 6.0 Strategic capabilities---------------------------------------------------------------9 7.0 Recommendations-----------------------------------------------------------------9 8.0 Conclusion--------------------------------------------------------------------------10 9.0 Bibliography------------------------------------------------------------------------11 Fig 1SWOT analysis--------------------------------------------------------------------6 Fig 2 Porter’s generic strategy model------------------------------------------------8 1.0 Introduction During the current period, it can be noted that organisations operate in an environment that is characterised by external factors of which in some cases, the companies have little control over them. Against this backdrop, this report seeks to critically evaluate the Rynair’s strategic position with regards to its external environment, competi tive forces, competitors, opportunities as well as threats. A SWOT analysis will be carried for the airline. The report will also discuss the company’s financial analysis, strategic capabilities, strengths and weaknesses. Recommendations about the measures that can be made to maintain the company’s success will be given at the end of the report. 1.1 Overview of the organisation Ryanair is a budget airline in Europe and it was modelled after the successful US carrier, Southwest Airlines. Ryanair was founded in 1985 by the Ryan family with the aim of providing scheduled passenger services between Ireland and the United Kingdom (UK). The aim was to provide an alternative to the then state monopoly carrier, Aer Lingus. Since its inception, the company went through a great deal of turbulence which resulted