Ryanair Air Case Study

RYANAIR AIR CASE
STUDY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
TASKS.............................................................................................................................................2
SWOT and PESTEL analysis of Ryanair....................................................................................2
Problems requiring immediate attention......................................................................................5
Recommended solutions..............................................................................................................6
Reflection.....................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is defined as the all internal and external variables which
influences the management and operational decisions of organisation. Analysis of these factors
helps organisation to identify the root cause of various management issues faced by organisation
and to implement the most appropriate solution for these problems (Ahmed and et.al., 2019). The
report will discuss the case study of Ryanair Air which is one of the most popular airline service
providers. The Irish budget airline is popular among customers due to its rapid expansion and
low budget services. The study will describe analysis of business environment of Ryanair and
various management related issues faced by organisation. It will also evaluate the appropriate
solutions for these problems so that Ryanair can retain its customers and strong position in the
competitive market.
TASKS
SWOT and PESTEL analysis of Ryanair
SWOT analysis helps organisation to evaluate its own strengths and weaknesses so that it
can grab different opportunities for its success and can identify the influential threats. SWOT
analysis of Ryanair is as follows:
Strengths: Organisation has strong brand perception as it was first airline to provide low cost
budget air line services in European market. The airline has lowest operational cost and fares
which are make it very popular brand among its targeted customers. Strong market presence,
large size helps Ryanair to effectively exploit economies of scale (Alderighi, Nicolini and Piga,
2016). Another strong aspect of organisation is that it regularly brings innovation in its services
and held high bargaining power against suppliers. Innovation such as online check in and
distribution, automated bag drop, airports to European regions which were not covered earlier by
any other airline services are strong forces which are contributing in strong positioning of
company.
Weakness: The earnings of Ryanair are seasonal and it greatly affects the business objectives
and profitability of the organisation. Aggressive fleet expansion is also considered as weakness

for the organisation as it can cause overcapacity. Ryanair is also facing critical issues due to its
deteriorating relations with employees. There has been negative media coverage due to poor
customer services and employee relations of organization. Thus successful management of
human resources and customer services is also one of the weaknesses of Ryanair.
Opportunity: Though there are various uncertainties due to Brexit, Ryanair has plenty of growth
opportunities. The organisation is planning to accomplish massive aircraft orders so that fuel
consumption and operational cost can be reduced and environmental impact on its performance
can be lowered. It will also help to strengthen its market position in Europe. In order to enhance
the customer services and relation with employees organisation is also implementing
companywide program (Asquith,. 2019) . This approach will give Ryanair an opportunity to lead
its rival companies opening doors to expansion of long haul low cost flights all over Europe and
in other parts of world as well.
Threat: The factors such as increase in fuel prices, currency exchange rates can impose threats to
profit margins of organisation. Being a part of tourism and travel industry Ryanair is also
affected greatly by terror attacks, natural or manmade hazards which hinder the operational
continuity. At present company is also facing most significant threat of lost management focus.
The conflicts and dissatisfaction among its various stakeholders can impose a competitive threat
over performance of organisation.
PESTEL ANALYSIS
The external factors are also playing an important role in influencing the strategic
direction of the organisation. The impact of these external factors can be analysed using
following PESTEL model analysis.
Political factors:
Ryanair operates in Europe which is under political instability due to Brexit. Thus there is
no surety regarding flight routes. Further regulations by political institutions like EU also impose
restrictions and various taxations such as competition law, CO2 emission fees and other taxes for
airline services (King, 2017). These regulations affect the operational cost and expansion