Political

What Is Business Strategy

Ryanair, in order to attain low-cost leadership, adopted the low-cost strategy. To achieve this goal, they had a large market share and their intention of acquiring Aer Lingus was also based on this vision.

The intention of acquiring Aer Lingus was based on a long-term strategy as mergers and acquisitions have become a popular form of corporate development. While it may appear to others as a ‘hostile and anti-competitive’ approach, Ryanair had a long-term strategic orientation instead of a one-time business tactic for short-term goals (Lin, Hung &amp. Li, 2006). This acquisition would have enabled the airline to make its competitive environment easier to deal with.

The political factor has a low impact on Ryanair’s operations as it operates within Europe and Europe has political stability. Even economically, Europe is stable with stable consumers. Technologically, they are at an advantage because Ryanair has invested in the latest aircraft and keeps making such investments which ultimately helps them to keep costs reduced. However, as consumer tastes and preferences keep changing, they need to understand the customer requirements. The legal factors have a high impact on Ryanair’s operations because they have several litigation cases over landing charges. Environmental concerns are plenty at Ryanair as they have been branded as ‘the irresponsible face of capitalism’ because of their contribution to carbon emissions as they have frequent take-offs and landings and short-haul flights.

The supplier power is low as the airline has its own fleet of aircraft and Ryanair does not have to depend on leased aircraft. Because of their growth and expansion, they have the power to renew their contracts with the airports even when the airport charges rise.
The buyer’s or the passengers at Ryanair have no power as the&nbsp.price is the lowest in the industry.

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