Business Environment of Ryanair: SWOT, PESTLE, and Porter's Five Forces Analysis

of Business
Communication

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
MAIN BODY...................................................................................................................................3
Ryanair Business Environment...................................................................................................3
Impact of Potential Strategic Solution........................................................................................5
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................6
PART 2 ...........................................................................................................................................8
INTRODUCTION...........................................................................................................................8
MAIN BODY...................................................................................................................................8
Learning Skills ...........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is process by which will understand the internal and external
condition of the business. With the help of this method business communication process and
performance will improve.
Ryanair is an Irish airline which provide services to customers at the attractive price. The
company is established in 28 November 1984 and headquarter of the organization is in Swords,
Dublin, Ireland. In this study will include the business environment of Ryanair through Swot,
Pestle and Porter 5 five force model (Prajogo, 2016). In this study will also provide impact of
potential strategic solution and includes recommendation for short, medium and long term goals.
PART 1
MAIN BODY
Ryanair Business Environment
Ryanair is an Irish airline and it is established in 1982. Ryanair business environment
some time impacted by the some internal and external factors (Deasy and et.al., 2016). For
understand the business environment of Ryanair will use some tools and techniques through
which easily evaluate the environment of company. These methods are as follows:
SWOT analysis of Ryanair
Strengths: Company stronger in the European market because it covers almost 200 destinations
and 1800 routes. The another strength of the company is their strong record of balance sheet and
accordant shareholder return (Boissy and et.al., 2016). Ryanair is also had powerful image in the
market because the low cost of their services, and it provides company strong competitive
advantage. So, these are the major strength of the Ryanair.
Weakness: The weakness of the Ryanair is in their internal business environment. Because in
the Ryanair their continuous change in labour relation and employee compensation arrangements
have major chances to impacts company business.
Opportunities: Ryanair has various types of opportunities in their business to enhancing their
business by their myRyanair system (Boissy and et.al., 2016). Company also have opportunities
to grow in market by improving their customer experience through Always Getting Batter
program of the company.
Threats: The threat for the organization which impact the business environment of the Ryanair,
that is Brexit. Just because of Brexit implication company face pressure to cut down their price,

which is already low (Deasy and et.al., 2016). The another threat of the company is fuel price of
flight, because fuel price of flight most of the time fluctuate.
PESTLE analysis of Ryanair
Political Factor: Political factors are those factors which are design and shape by the
government and legal authorities of the country (Boissy and et.al., 2016). It may include tax
rates, import export rate, foreign exchange rate etc. The environment of Ryanair is also impacts
by the political factors, such as government of UK charge high rate of taxes from the commercial
air travel. Just because of this law of government company also need to improve their flight
charges. And high charges of travel services impacted the customers of the Ryanair.
Economic Factor: Economic factors includes the major thing is Brexit. After the implication of
Brexit in the UK, most of airline services are affected negatively (Prajogo, 2016). Because price
of pound also goes down after the Brexit and no one actually wants to invest in the UK. Also,
after the Brexit consumer spending consequent into a fall in leisure travelling cost, that will
negatively impact the environment of Ryanair.
Social Factor: Social factors includes the group of people within the society. It is also included
the caste, religion, age and sex of people of society. Social factor of UK directly impacted the
Ryanair business because, high rate of living reduce the interest of British people towards the
travels and that may reduce the business of Ryanair (Boissy and et.al., 2016). Also, the another
thing is the age of people is impacted the Ryanair, because in UK aged people are more likely to
go travel and become difficult to accommodate them at the airline.
Technological Factor: The latest technologies are also impacted the business of Ryanair
(Georgescu and Popescul, 2015). Ryanair implement technologies like biometrics and Alexa
which provide information to the customer at the airport and also reduce the extra pressure of
employees and customers.
Environment Factor: The environment is very much affect the business environment of the
Ryanair. Such as change in the weather and climate company have to postponed their flights, it
will affect the customers and the revenue of the company.
Legal Factor: Legal factors have major impact on the business environment of Ryanair. Such as
changes in the labour law will impact the policies of company and company have to adopt new
policies (Erasmus, Strydom and Rudansky-Kloppers, 2016). For an example after the implication