Ryanair airlines Essay Example | Topics and Well Written Essays - 1000 words

Ryanair airlines - Essay Example The company provides its service to 28 countries in Europe. External environment can be comprehensively be captured by conducting a PEST analysis. It is a strategic process of analyzing the political, economic, social and environmental forces affecting the operating environment of the organization (Johnson, et al., 2011). Political: The deregulation of the Aviation industry in Europe had helped in the growth of the airline companies since 1997. This had particularly helped Ryanair to develop a network of travel route over entire Europe directly fuelling their growth (Malighetti, Paleari and Redondi, 2009). The government is also creating opportunities for aviation companies to expand operations in the U.S. Economic: The economic environment of Ryanair has been highly profitable as has been observed from the consolidated financial statement of the company. Additionally, the recession of 2008 had increased the preference of the consumers towards availing low cost flights as their disposable income has gone down (Malighetti, Paleari and Redondi, 2009). Another pressing issue for the company is the rising cost of oil in the recent years. Social: The high rates of unemployment in the country have increased the importance of low cost airlines. This has been accompanied by the growth of the need to travel throughout the country for the need of finding a job. Technology: Technological advancements are extremely important for the aviation industry as it is directly related to the reduction of costs. Constructing fuel efficient aircrafts and introduction of technology to allow customers to self-service themselves can contribute to the reduction of operating costs. Factors like the creditworthiness of the company, its reputation and image can be considered as internal factors affecting strategic decision making. Building a good brand image in front of the