LEEDS METROPOLITAN UNIVERSITY
FACULTY OF BUSINESS & LAW
Business Strategy
Questions
Section 1
To what extent has Ryanairs strategic growth been internally or externally driven?
Section 2
Referring to the Ryanair case, critically discuss the extent to which low cost competitive
strategies are sustainable.
SWOT Analysis:
Firms strategy should take external opportunities and threats and internal strengths and
weaknesses into account. This is done by SWOT Analysis. The SWOT-Analysis is an
effective way of identifying internal strengths and weaknesses of any organization and of
examining opportunities and threats of the external environment. The analysis objective is
to take advantage of the opportunities the environment offers, and to avoid or minimize
environmental threats.
1. What are the organizations strengths?
2. What advantages does the organization have compared to others?
3. Which procedures are better examined by the organization (compared toothers)?
4. What do other people perceive as the organizations strengths?
5. What are the organizations weaknesses?
6. What can be improved within the organization?
7. Which activities are carried out in a poor quality/way?
8. Which mistakes can be avoided in the future?
9. What are external opportunities?
10. What are opportunities that can be useful for future organizational development?
11. What are current market trends and how may these develop into opportunities?
12. What are external threats?
13. What obstacles are faced by the organization?
14. Are changing technologies threatening the organizations position?
15. Are there any bad debt or cash flow problems?
16. What is the development of the organizations competitors?
Ryanair is operating in the low cost airline segment of the market. Its main focus is given
on pursuing the low cost strategy, which supports its mission to make flying possible for
everyone. The company demonstrated its superior performance. One of the main factors
that helped to achieve the excellent profitability is the air transport industry deregulation.
While concentrating on providing the lowest fares to its customers the company considers
other important issues such as safety and extended customer service as well.
Ryanair is focusing on lowest costs it is able to offer low fare tickets but also puts effort
into increasing service.
Strengths
The low cost strategy is an obvious strength of Ryanair. The company is able to
successfully apply this strategy in recognition of simple company logistics, effective use of
airtime and also in appreciation to its UK home market, which provides a strong base due
to its high traffic. In addition, the focus on secondary airports allows minimizing landing
and ground handling fees. The fact that the company does not take this strategy for granted
and is seriously committed to it implicates even more positive factors. As the main focus is
