Ryanair Porter's Five Forces Analysis and Business Communication

The provided document contains a detailed analysis of Ryanair using Porter's Five Forces, which is a framework used to analyze the competitive structure of an industry. The analysis includes an examination of the threats of new entry, rivalry among existing competitors, bargaining power of suppliers, bargaining power of buyers, and threat of substitution. Additionally, the document provides information on Ryanair's business communication strategies, including its use of social media platforms such as Twitter to engage with customers and promote its services. The summary also highlights the importance of effective business communication in today's digital age, where companies must adapt to changing customer needs and preferences.

Foundations of Business
Communications

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN TASK...................................................................................................................................1
Overview of Ryanair Airlines.....................................................................................................1
Theory, models and analysis of Ryanair Airlines.......................................................................4
Key findings of research and few issues that are being faced by managers and supervisors.....9
Reflection on learning and development of key skills..............................................................10
CONCLUSION.............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business communications is a process where employees and managers interact with each
other with an aim to resolve specific problem by sharing their ideas on certain topics. In modern
world, it is must for organisations to look into different aspects like external and internal
environment which can put impact on them. Under this report, firm which has been chosen i.e.
Ryanair Airlines. It was found in the year of 1984 and headquartered in Dublin, Ireland. In 2016,
this airline carried higher number of international passengers from one place to another more
than its competitors (Keegan, 2013). Around 13,000 staff members, Ryanair is having that are
serving to passengers and trying their level best to deliver quality based services so that they can
get good experience. Assignment is going to include, PESTLE/SWOT Analysis and Porter's five
forces model which will help in understanding the impact of external environment. Report will
show, key findings which has been observed while conducting the research. Lastly, assessment
will put light on self-assessment analysis which will include theories like Belbin, Tuckman and
Kolb in order to understand about key employability skills.
MAIN TASK
Overview of Ryanair Airlines
Ryanair is number one airline of Europe that carries around 130 million passenger per
year. It has been analysed that, more than 2,000 flights take off from 86 airports in all over world
on daily basis. Airlines is famous for its low fare which has helped them in maintaining high
range of customer base. Ryanair is having over 13,000 staff members that are highly skilled and
carrying vast knowledge related to aviation.
In middle of 2017, flights of this airline flew with more than one billion customers from
one place to another which has never done before by any airlines in past.
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(Sources: Growth of Ryanair Airlines, 2018)
From above mentioned graph, in past few years there is an increase can be seen in growth
of Ryanair Airlines. This has helped them in becoming number one airline of Europe which
carried 1 billion passengers in all over world.
Key Business and customers of Ryanair Airlines
Ryanair Airlines operates over 1800 routes in all over world. Apart from this, they keeps
eye on safety records which has helped them in passing from different tests over 33 years.
Around 150, 737-800 Boeing Aircraft, Ryanair is having at current time. On the other hand,
almost 1.5 million people majorly visits online website of this airlines.
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Illustration 1: Growth of Ryanair Airlines, 2018

(Sources: What happens in a Ryanair Day, 2018)
Suppliers and competitors of Ryanair
It has been analysed that in airline industry there are only two type of suppliers that are
present. Existent purchase of places along with fuel. It can be said that, as Ryanair Airlines is
having good reputation in air industry which helped them in maintaining proper and healthy
relationships with these two suppliers. In the year of 2007, when economic condition of several
airlines was not good and were not purchasing from providers. Ryanair decided not to stop at this
point and O'Leary who is the key person of this organisation decided to continue the buying
process (Thill and et. al., 2013). This helped organisation in maintaining its relationship with
suppliers much strong. Apart from this, easyJet, Monarch, British Airways are some of major
airlines that are giving good rivalry to Ryanair.
Strengths, weaknesses and performance of Ryanair
Ryanair airlines is having vast range of networks with approximately 1500 routes in more
than 28 nations. Because of its strong networks, Ryanair grabbed number one position as per the
customer's point of view. On the other hand, because of media customers and general people
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Il
lustration 2: What happens in a Ryanair Day, 2018

developed negative perception. This impacted badly on reputation of this organisation. Apart
from this, it came in front that one more problem which was faced by this airline i.e.
enhancement in tax rates.
Challenges faced by this airlines
It has been analysed that, there are ample number of issues that were faced by Ryanair
Airlines and these are given beneath:
Regulation by domestic and EU: It is being found that, airlines of Europe are subject to
regulations that has been made by EU or by government. In early years of this airlines, there
were heavy restrictions were faced by them. This made them think twice before making any sort
of decisions. This affected productivity of Ryanair Airlines (Bovee and Courtland, 2012).
Charter carriers and Franchises of major airlines: In modern world, famous business
people and celebrities of Europe majorly likes to travel from charted flights. As per the survey, it
can be said that private jets and charter flight operators have taken around 1/4th market share in in
UK and in Europe as well. This has impacted majorly on business of Ryanair Airlines.
Customer service satisfaction: In recent times, Ryanair Airlines have raised checked
luggage fee from 15 euros to 20. This can be stated as one of the reason which has made bad
perception of passengers for this airlines.
Theory, models and analysis of Ryanair Airlines
SWOT Analysis of Ryanair (Internal Environment)
Strengths Weaknesses
 RYANAIR is determined as one of its
first kind that provides low-cost air
flights and which was established in
Europe (Ulrich and Sarasin, 2012).
 Company is providing its services in
more than 200 destinations and across
1800 routes.
 Currently company is having a market
 Change in strategies related to
employees compensation can hamper
relations between staff members and
superiors.
 Aggressive fleet can have a negative
impact on business operation as
company might not be able to provide
effective services and facilities to
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share of around 18.7% which is making
them financially strong. In addition to
this, it is enabling company in
implementing low cost business model.
Thus, this model is working as a
biggest advantage in order to provide
competitive advancement.
 As company's position is good hence, it
is not having any problem during the
period of recession (Guffey and Loewy,
2012).
 Their service of providing tickets to
customers through online ticket
reservation system is assisting
consumers in getting adequate
information of trips without even
relying on travel agents.
customers.
 Therefore, bad and poor services is
frequently associated with RYANAIR
from couple of time which is gradually
having a great impact on business
operations.
 Unbiased low cost policy are
misleading customers and its effect can
be seen economic growth of the
company.
 Company's focus on providing tickets
at low cost sometime creates problem
for company in difficult situations as
demands can get increased and
decreased respectively. For example:
situations after Terrorist attract in
European countries.
Opportunities Threat
 RYNAIR companies can work on
providing better customer experience
by implementing programmes i.e.
Always Getting Better program.
 Other than this, company can work on
their websites so that customers can
easily access them and book tickets
quickly.
 As company is big and they have
formulated ambitious growth plan for
their business which can have an great
impact on business as there are some of
the external factors which cannot be
controlled by firm.
 Variations in fuel prices according to
the international market can work as a
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 By considering environmental issues
company can work on reducing fuel
consumption with the help of
incorporating state of the art aircraft.
threat.
 Because of BREXIT, company had to
cut down its prices due to which sales
and profitability has reduced.
PESTEL Analysis of Ryanair Airlines (External Environment)
Political: In this mainly, rules and regulations formulated by government are taken into
considerations. After the happening of BREXIT, European Union and its regulatory bodies had
focussed on growth of domestic airlines and they government developed rules and regulations
accordingly. Further, they restricted free flights between United Kingdom and European Union
and this is the reason why political outcome has minimised the access of EU into the market of
UK. In addition to this, cut down prices in airport taxes has somewhat reduces operating cost of
airlines.
Economical: Financial crisis faced by other rival companies have given opportunities to
RYANAIR as customers are having less choices but to travel by this airlines. Thus,
implementing low cost rates has increased its sales and maximum number of people are
preferring to travel with RYANAIR. In addition to this, company has provided maximum people
with job opportunities which is directly or indirectly playing a crucial role in increasing revenues
and economy of nation (Sharma Chrisman and Chua, 2012).
Social: The concept of low price strategy has given chance to middle class people so that
they can experience the lifestyle of travelling through air. As compared to earlier times, now a
days' people love to travel to different areas and prefer going to short trips each year and
customers expect a high level of services and facilities from this.
Technology: With the advance technology its easier for the passengers to access the
internet and book their tickets on mobile phone. Passengers are more comfortable in booking
tickets with their convenience and it is beneficial for the Ryanair airlines as it increases their
number of passengers. Whereas availability of trans-Atlantic trains is considered as the threat for
this company as these trains have higher speed and quiet economical as compared to the airlines.
Money minded customer are more interest in travelling in trains rather than the airlines.
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Environmental: As being the airline industry, Ryanair airlines pressurise by the
environmental laws which advices to burn minimum fuel, reduce noise levels and Co2 emission
in order to not harm environment. For this Ryanair airlines have to opt new technology in their
air planes in order to reduce CO2 emission and lower noise levels. This has an negative impact
on this company in terms of harming environment.
Legal: In today's scenario, passengers are more about their rights which is made by the
government Europe with motive of providing benefits to the citizens. Ryanair group is facing
issues from the passengers end, as they are fighting for low cost tickets according to EU
compensation rules and regulation (Knapp and VandeCreek, 2012). For this, Ryanair airline is
having difficulty in handling passengers.
Ansoff Matrix Theory Model
Ansoff matrix theory can be considered as an effective tool which may aid in
understanding the external environment. Through this, it can be said that this sort of matrix can
be helpful for Ryanair in developing its products and make effective strategies through which
many benefits can easily be gained by this airlines.
Ryanair can use market penetration model. With the help of this, airline can easily
improve sales of existing products and services. It is being found that, Ryanair if use this
approach that it will help them in convincing passengers to take in use of services in more often
manner.
Product and market development are two major strategies through which Ryanair can
give good competition to its rivals. Bringing in innovation among existing services like 2 lucky
passengers are allowed to get into cockpit for few minutes can influence consumers to use their
services in an often manner. On the other hand, it is mandatory for Ryanair, to get into new
markets and try to develop them with innovative ideas to sustain at international marketplace for
a longer period of time (Jonassen and Land, 2012).
Ryanair Airlines are much aware of the fact that, more services if they will provide they
can develop long term relations with the passengers. Therefore, diversification helps them in
giving ample number of services with low costs which makes them in attaining specific goals
and objectives right on time.
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(Sources: The Ansoff Matrix, 2013)
Henceforth, external environment is being considered as something which majorly affect
company while using this theory. Flimsy changes in tax policies can affect whole strategy of
Ryanair Airlines. Therefore, while using this theory it is required for the company to analyse the
whole scenario which is related to external environment along with current trends in order to
develop effective policies in much effective and efficient manner.
Porter’s Five Forces Model
This type of model can be helpful for the company when it comes to analyse the market
position and how many competitive advantages that an organisation have. Ryanair which is
Europe's first along with largest low fares airline which has grabbed a good position in
marketplace of Europe which is continuously taking initiatives in trying to give good rivalry to
competitors (Ryanair Porter’s Five Forces Analysis, 2018). Five force's of this model are given
below:
Threat of entry - At present time, Ryanair is holding a good position in Europe. If any
organisation in airline industry tries to uphold a healthy place in this continent. Then it is
required to make a huge budget to make for promotional activities in order to give competitive to
this Ryanair Airlines.
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Illustration 3: The Ansoff Matrix, 2013

Competitive rivalry – Ryanair Airlines enable to gain high competitive advantage from
other airlines due to low fares and no frills. It helps company to attain or grab more and more
customers over the market and also expand short haul flight routes. The airline firm uses point to
point strategy and reduce flight turnaround in order to reduce its operation costs. Although, the
Ryanair is facing intense competition with other companies in costs, they are adopting more
pricing sensitive strategies with high benefits. There is raising price wars between Ryanair and
its rivals.
Bargaining power of Suppliers - In an Airline industry suppliers are limited only with
fuel and aeroplane supply. Although, Ryanair has strong relationship with its suppliers, it has
made a long term contracts with Boeing while economic downturn as well whereas other airline
companies hold their purchasing. In order to expand its Aircraft, the firm has expanded more
destinations in UK and render tickets at low prices; it supports Ryanair to become leader of
Airline industry worldwide (Kwok and Yu, 2013).
Bargaining power of buyers – As a multinational company, Ryanair Airlines has
numerous customers over the world due to its standardised products or services, strong brand
image, flexible demand and service quality. The organisation sold its tickets through online as it
provides tickets at competitive prices. But there is risk of bargaining power of customers as if
they want lower rates and effective facilities in flights then it would affect firm's profitability.
Threat of substitute – In Europe, there are numerous Airline industries which provides
similar services like Ryanair Airlines is serving to its customers. But, they cannot keep the rates
low as much as Ryanair is keeping. Thus, it can be said that, this approach is not a big issue for
this airlines as they have a good name in all over world.
Henceforth, it can be said that external environment can be considered as something
which is impacting on business of Ryanair's reputation. As this organisation is already having a
good position in all over world which has helped them in gaining competitive advantages. This
aid them in attaining specific goals and objectives (Gretzel, Werthner, and Lamsfus, 2015).
Key findings of research and few issues that are being faced by managers and supervisors
From conducting investigation, it is being found that Ryanair Airlines is having a good
position in all over Europe. With the help of this, organisation is carrying ample number of
opportunities which impacted positively on their reputation. Many competitive advantages has
been gained by them which helped them in hitting their targets. On a daily basis, because of low
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fare, passengers of this company are saving around 32 million in every single day. Apart from
this, Ansoff matrix, pestle/swot analysis can be helpful in looking into different aspects like
market value, trends and other things.
Company have effectively used these approaches and developed strategies through which
its aircraft are taking passengers to around 200 destinations in all over world on daily basis.
Company is growing effectively with the help of low cost fares. But, they have also reduced few
services as well. This impacted negatively on some points as well. Through this, it can be said
that many benefits are easily gained by this company.
On the other hand, changes in technology and alterations in perception of customers
brought up many challenges in front of managers and leaders of Ryanair Airlines. It is being
found that company majorly have to make changes whenever they go through an update whether
it is related to technology or perception of passengers. Rapid acquisition can be helpful for this
organisation. On the other hand, because of inundations managers and leaders have to conduct
training sessions from time to time. This can be helpful for employees to improve their skills and
knowledge (Swani, Brown and Milne, 2014).
Reflection on learning and development of key skills
While preparing up the project and collecting data from different media, it is being
analysed by me that there are ample number of employability skills I am already having. Some
of employability skills that a person should have are communication, teamwork, problem
solving, self-assessment, learning, technology and many more. I am good in communication and
decision making as well. Apart from this, while conducting investigation which is related to
present case study on Ryanair, it helped me out in developing my own skills along with
knowledge as well. Personal objective which I made was to improve my weaknesses. I found
that I was not good in working with the team because I cannot believe on decisions of others.
My objectives is that To start working with the team and become much effective and raise
performance of my own to 20% within 20 days.
While conducting this investigation, it is being analysed by me that, If I will get chance
of working on the same project again. Gathered information from present report will help me out
in reaching to conclusions right on time.
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CONCLUSION
From the above mentioned report, it has been concluded that through the SWOT analysis
Ryanair airlines can use its positive and strongest factors for its expansions and business growth
on the other hand PESTLE analysis is based on the external factors which influences
organization and that will help the airlines in reducing negative effect of these factors. With the
help of this, it can be summarised that business communication is much required for
organisations to grab good position in short period of time.
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REFERENCES
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Ulrich, P. and Sarasin, C. eds., 2012. Facing public interest: The ethical challenge to business
policy and corporate communications (Vol. 8). Springer Science & Business Media.
Guffey, M.E. and Loewy, D., 2012. Essentials of business communication. Cengage Learning.
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family business studies. Springer Science & Business Media.
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Online
Ryanair Porter’s Five Forces Analysis. 2018. [Online]. Available through <https://research-
methodology.net/ryanair-porters-five-forces-analysis/>.
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