Global Business Environment

This document provides an analysis of the global business environment for Ryanair, including a SWOT analysis, PEST analysis, and Porter 5 Forces analysis. It discusses the strengths, weaknesses, opportunities, and threats for the company, as well as the political, economic, social, and technological factors that affect its success. The document concludes with an assessment of Ryanair's performance and growth prospects.

GLOBAL BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
SWOT ANALYSIS..........................................................................................................................3
PEST................................................................................................................................................3
PORTER 5 FORCES ......................................................................................................................4
CONCLUSION....................................................................................................................................4
REFERENCES.....................................................................................................................................5

INTRODUCTION
Global environment analysis means that the analysis of the global environment of a
company. This analysis can be done on a macro or micro environmental level.
MAIN BODY
SWOT ANALYSIS
Strength
The biggest strength of Ryanair is the low cost, the company has the lowest cost in the
European airline. Ryanair production cost and other cost are lower than there competitors. There
main strength is cost leadership.(Hamilton and Webster, 2018)
Weaknesses
The main weakness of Ryanair include that they are poorly performing in a range of polls,
surveys. This could seriously affect the brand image of the company. Also, the seasonality earning
acts as a threat as if there are problem in the boom season the sales would be greatly affected.
Opportunities
The company is known for its quality services, they have a great opportunity in further
improving there customer services. The company could offer different packages with quality being
served for increasing there sales.
Threats
The company has a strong safety record, but the low cost may create blunder that the safety
are compromised, this could act as a major threat and could affect the reputation of the company.
PEST
Political
These are the factors which affects Ryanair long term profitability. According to these
political factors the nation is seen more or less attractive. These includes the labour laws,
government intervention etc.(Tallman, Luo and Buckley, 2018)
Economic
These are the factors which affect the overall success of Ryanair. These factors include
inflation rates, interest rates, exchange rates etc., Ryanair must be updated with these issue or there
may have serious consequences.
Social
These are the social behaviour and cultural trend which impact the working of Ryanair.
These trends may require the organisation to change the product or services being provided by
them. These includes the attitudes and shared beliefs of the individuals.
Technological
This factor has come into trend in the past decade when different industries started using
technologies like online services to provide there product all over the world. For surviving in global

business environment Ryanair must adapt these changes.
PORTER 5 FORCES
Competitive rivalry
There are a number of substitute available for Ryanair customer that provide the same
services at low cost like that of Ryanair so there competitive rivalry are very high.
Threat of new entrants
The industry requires large amount of investment to be made, therefore the threat of new
entrants are likely to be low.
Bargaining power of supplier
There are only 2 manufacturers of air planes which are Boeing and Airbus, therefore the
bargaining power of supplier is very high in this industry, so Ryanair must maintain good supplier
relationship.(Doh, Luthans and Slocum, 2016)
Bargaining power of customers
there are variety of substitute available for the customers so Ryanair cannot increase there
prices to increase there sales as the customer will switch, therefore the bargaining power of
customer is high.
Threats of substitute
The threat of substitute is very high for Ryanair as company's like Wizz Air, Easy Jet etc.,
provide the same product at the same price.
CONCLUSION
From the above report we have come to a conclusion that Ryanair is performing well and
has good growth perspective in the future.

REFERENCES
Books and journals
Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015: Perspectives
on the 50th anniversary issue of the Journal of World Business: Introduction to the special
issue.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal. 8(4). pp.517-535.