SWOT and PESTLE Analysis of Ryanair

Context of Business

Table of Contents
Context of Business.........................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT and PESTLE Analysis of Ryanair...................................................................................3
Main Problem of Ryanair............................................................................................................6
Solution of the Problem...............................................................................................................8
Experience in Writing the Report..............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Ryanair, an Irish budget airline founded in 1984 headquartered at Dublin Airport, Ireland.
Main operations of bases of Ryanair are based at Dublin and London Stansted airports. Route
network of Ryanair serves 40 countries in Europe, North Africa and Middle East at 225
destinations. Fleet size of Ryanair is 287 and employs around 17500 employees. The airline have
successfully operated as a budget airline but recently is facing some issues due to increasing cost,
uncertainties because of Brexit and staffing issues. These problems have been capitalized
because of negative media coverage about customer service and employee relations and disputes.
This report will address internal and external analysis of the airline with tools like SWOT and
PESTLE analysis. This will also discuss important problem of the Ryanair, which require
immediate attention from the airline so that its impact can be reduced and this will also include
solution for the problem and reflection in writing the report.
MAIN BODY
SWOT and PESTLE Analysis of Ryanair
SWOT Analysis
Strength
Low cost- This is biggest strength of the Ryanair. This is because Ryanair is a low cost airline
and this has contributed in success of Ryanair (Büyüközkan and Ilıcak, 2019). Ryanair has the
lowest cost in European airline industry.
Low Fares- Low fares of the Ryanair are because of its low cost and enable company to earn
adequate profit. Average fares of Ryanair are less than its competitors in Europe and this make it
strength for the airline.
Innovation- Ryanair has the change nature of short-haul airlines and Ryanair is the only
European airline to do this (Barrett, 2016). Earlier this was an act of imitation but later
innovation became key factor for success for Ryanair.

Management Focus- Management of Ryanair have focused on doing what it does best. This is
focus on low cost, low fares and innovative airline practices. Innovation has been aimed at
finding the ways to keep the fares and cost low as possible.
Weaknesses
Brand Perception- Brand perception of Ryanair is its weaknesses as the low cost of the airline is
perceived as indicator of low quality of the airline (Büyüközkan and Ilıcak, 2019). Ryanair have
focused on safe and punctual air travel but even after this Ryanair have performed poor in polls,
awards and survey.
Seasonality of Earnings- Earnings of Ryanair are highly seasonal, its profit and increase in profit
rely on strong northern summer. This profit is used to off-set a loss making winter.
Opportunity
Improved customer service- Ryanair has managed to keep its cost and fares low and by
improving its customer service it can create opportunity for airline. This can include
improvement in customer interaction with the airline regarding their booking, information about
the flights and journey experience of the
New aircraft- Ryanair has announced buying of new aircrafts and this creates an opportunity
through which Ryanair will be able to serve more customers.
Business Travellers- Business Travellers are a very good opportunity for Ryanair (Barrett, 2016).
Business travellers need to travel frequently and in that case Ryanair can target them as
customers group and attract them through some offerings.
Threat
Accident- Ryanair have a record in safety but accidents might be a threat for Ryanair because of
Ryanair’s low cost strategy have been considered by media that it cuts corner on safety.
Employee relations and internal disputes- Dispute in management and pilots of Ryanair have
been covered by media and this is a significant threat for the company (Sezgin, and Yuncu,
2016).