SWOT and PESTEL Analysis of Ryanair

ASSIGNMENT

TASK 1
SWOT AND PESTEL ANALYSIS OF RYANAIR
Ryanair is one of the leading and well established European airline organisation. Company was
formed in 1984 and its headquarters situated in Dublin, Ireland. It is one of largest European
budget airline cause it known for its fare and successful application of low cost business model.
Organisation owns and run approx 300 bowing aircrafts and has more than 12000+ employees.
Company has earned brand image and reputation as it offers low fares to its consumers and give
fierce competition to others in aviation industry. Presently, firm is facing various challenges due
to increase in cost, Brexit uncertainties, poor staffing issues, negative media coverage and so on.
Company management can make use of SWOT and PESTEL in order to understand dynamic and
changing nature of business activities of Ryanair.
SWOT ANALYSIS model or framework is utilise to determine or assess those different forces
which are generating negative or positive impact over Ryanair operations and working functions
as well as influence aviation industry at large (Gheibiand et. al., 2018).
 Strengths: this strategic analysis depicts key successful factors which enables firm to
achieve its all targets and objectives. It includes low cost fare services which attracts
large customers, innovation in terms of leadership. Moreover, company has established
its business in European market which covers almost 200 destinations and 1800 routes.
Ryanair runs flights for short distance locations also. All these positive forces enables
firm to sustain its competitive edge.
 Weakness: there are some areas in which Ryanair is somehow weak which creates
obstacle in company’s growth. Such are improper labour relations and employee
compensation creates situations of conflicts and disputes. Moreover, company has poor
customer services, unfair pricing that sometimes leads customers in wrong direction. Less
diversification is big issue.
 Opportunities: there are immense opportunities present in aviation industry for Ryanair.
Such as massive aircrafts orders that might strengthen company’s market position in
Europ. Company can work on improvising customer services which helps in enhancing
quality of passengers satisfaction (Haluzová, 2016).

 Threats: there are various negative factors which make adverse impact on Ryanair
growth expansion. Such threats are fluctuations in fuel prices, rivalry from other low cost
airlines some of them are Wizz Air, EasyJet and many others.
PESTLE ANALYSIS is a mechanism which generally used to determine and understand affect
of external forces that influence overall business activities of Ryanair company.
 Political factors which affects company operations are UK government has imposes
policies of charging high tax associated with commercial air travel internationally on
those passengers who are flying from UK. This brings negative impact on profits of
company as customers are unwilling to take short flights. Further, due to Brexit
referendum in which Britain voted to leave EU is result in enormous fluctuation in
political and economic uncertainties. It influence company operations as it disrupt EU-
UK flights. Also, this result in reduction of EU airlines access to UK market (Sarsby,
2016).
 Economical: due to Brexit, there is occurrence of unavoidable recession in UK after its
separation from EU this leads to reduction in profit earnings of Ryanair. Brexit put
pressure on fare prices and oil prices of aviation industry.
 Social: UK has diversified culture and population which is beneficial for growth of
Ryanair as it is a low cost airlines which is favourable for middle class passengers.
Although, changing lifestyle bring positive impact on company as new generation
consumers prefer to take and inclined towards short trips.
 Technological: these factors are favourable for Ryanair growth expansion due to
increase and enhancements in digital platforms which create an opportunities to provide
better customers experience and post services. With help of Panasonic upgrade with
biometric technology enables firm to offer secured payment authorization on board to its
guests.
 Environmental: company required to look after these factors as EU laws and regulations
associated with emissions emerging from airlines may affects operations of Ryanair.
Company required to emphasize on taking environmental initiatives to reduce heat waves
and modify its operations strategy in order to adjust with change climate (Zahari and
Romli, 2019).