RYANAIR CASE ANALYSIS NOTES Coursework Example | Topics and Well Written Essays - 1000 words

RYANAIR CASE ANALYSIS NOTES - Coursework Example Threat of new entrant into the industry is extremely low. This is because large capital is required for other aircrafts to enter the market. Additionally, the period for required for other firms to market themselves, is long (Creaton, 3). Finally Europe is extensively industrialized therefore getting space to build a new airport may be impossible. Ryanair face relatively stiff competition from substitutes. There exist alternative and affordable methods of transportation like high-speed electric trains and ferries. Furthermore, a bigger population of Europe residents own personal cars. This means that they can easily switch to driving. Buyers bargaining power is medium. As with many businesses, customers are always sensitive to prices. If Ryanair increases its prices, customer will shift to other planes whose prices are lower. In other words, Ryanair has not worn its customer’s loyalty. The power of suppliers to Ryanair is extremely high. All aircrafts owned by the company are Boeing. If the manufacture of Boeing denies Ryanair its services, Ryanair will undergo extensive loss. Jet engine fuel is controlled by few companies in Europe. As a result, Ryanair controls it through hedging (Creaton, 8). Finally, regional may decide to increase their charges on planes. In order to avoid this, Ryanair has come up with policies that make them avoid such regions. Finally, there is stiff competition in the market. Other flight companies like Easyjet and Aer Lingus have also adopted the tactic of offering low cost to passengers. Since this low cost model may become a trend, Full Service airline may also imitate the model posing more competition to Ryanair. Through PESTEL framework, the political, economic, social cultural, technological, ethical and legal environment impacting Ryanair will be discussed. Political environment affecting Ryanair