Report

Report

Table of Contents
PART 1 (REPORT).........................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of Ryanair business environment............................................................................3
CONCLUSION................................................................................................................................6
RECOMMENDATION...................................................................................................................6
REFERENCE...................................................................................................................................7
PART 2 (REFLECTION)................................................................................................................8
INTRODUCTION...........................................................................................................................8
CONCLUSION..............................................................................................................................10

PART 1 (REPORT)
INTRODUCTION
Business environment is defined as integration of internal and external factors which has
impact on the organisation (Babu, 2012). This includes innovation in technology, political
conditions and so on. The given report is based on Ryanair airlines which was founded in 1984.
It is the largest airline group in Europe that is operating its business in different parts of the
world (History of Ryanair, 2019). This report highlights about business environment using
various tools such as SWOT analysis, PESTLE, Porter's five forces.
MAIN BODY
Analysis of Ryanair business environment
The business environment of Ryanair can be explained with help of different tools such
as: SWOT, PESTLE and Porter's five forces. They are explained below:
SWOT Analysis
The SWOT analysis of Ryanair airlines are as follows:
Strengths- Ryanair has strength of lower cost base which leads consumers to avail
services. As compared to other airline, it has low cost fare which is 37% below easy Jet. It has
network of 1500 route in 28 countries and 178 airport which makes easy for consumers to avail
their products and services (Ryanair SWOT analysis – Michael O'Leary's maniacal focus on
being the lowest cost producer, 2019). It has also strength in terms of fleet, airport choices, fast
turnaround times, ancillary revenues, innovation and financial performance.
Weaknesses- Ryanair has weaknesses in terms of seasonality of earnings as it earn high
during summer season and bear loss during off or winter season. It has low frequencies on routes
as compared to competitors and departure at inconvenient times. There is negative impact of
media for Ryanair as it does not care for consumer's money, uncaring nature and mean.
Opportunities- Ryanair has opportunity in terms of increasing market shares and growth
to expand their business in other places. It has capacity for producing strong financial results
through combining price sensitivity from passengers and capacity of cutting prices from different
competitors.
Threats- There are various threats which can be faced by Ryanair airline from market.
The major threats are its competitors which focus on providing same quality of services at low

cost. External events such as change in climatic condition, weather and other highly impact
airline industry. There is increase in air travel taxes, airport and navigation charge which leads
threats to business to conduct their activities and operations.
PESTLE Analysis
It is defined as environmental factors that assist in scanning of environment component
of strategic management. They are described below:
Political Factors- This factors impact Ryanair airline as there is change in political
condition of government. The respective organisation is low cost and small airline which has
limited destinations where it is operating flights that effect on business. There are frequent
terrorist attack in Europe which has adverse effect on demand of air travel (Ryanair SWOT &
PESTEL Analysis, 2019).
Economic Factors- The economic state of country has greatly impact on airline industry.
This has relation with trade cycles and economy and Ryanair is less affected as compared to
others. When there is reduce in activities then number of passengers are reduced that causes loss
to airline. There is fluctuation in prices of oil which is used in airline firm that also leads to rise
in cost for ticket for passenger which can impact business and their running activities and
operations.
Social Factors- This includes change in trends, demography and so on (Apăvăloaie,
2014). The consumer of Ryanair airline prefer high speed rail for short haul routes as it saves
their cost and time. Passengers are ready to pay more on ancillaries if ticket cost is low. The
respective organisation has to consider their consumer need and demand in order to fulfils their
requirement for maximum profits and gains.
Technological Factors- With the rise in digital technology made life of people make
easy and safe. It is very important for Ryanair airline to provide their passengers with online
booking, availability of tickets, their prices and routes facility so that they can book their tickets
from any parts of the world. For better and improve consumer experience, new and updated
technology should be used in airline industry for high returns.
Legal Factors- Ryanair airline has to follow all legal rules and regulations for their
industry in order to conduct their activities and operations in an effective and efficient manner.
As it has been lawsuit by European Commission at certain airport for receiving state aid. After