Ryanair Case Study

RYANAIR CASE
STUDY

TABLE OF CONTENT
PESTLE Analysis of Ryanair......................................................................................................1
SWOT Analysis of Ryanair.........................................................................................................2
Challenges and Problems of Ryanair...........................................................................................4
Management concepts and theories.............................................................................................5
Experience while writing this report............................................................................................7
REFERENCES................................................................................................................................9

PESTLE Analysis of Ryanair
This report has a brief information about Ryanair airlines which provides it services in
UK and other market (Michl, 2016). Pestle is the analytical tool which helps the business to
determine external market factors which can impact business and reduce efficiency to grow in
market effectively. Ryanair need to adopt this tool as the company is operating in different
markets and every market has different degree of threats and opportunities which can help the
company to grow in market effectively.
Political Factors
Due to Brexit it has impacted Ryanair negatively and also reduced profit margins as well.
After Brexit there are new rules and regulations which are impacting on the quality of activities
in the company. It is because of reason Ryanair will have to follow both European and United
Kingdom’s regulations so that they can function effectively in the market and do not have to lose
their customers loyalty. This factor helps the business to determine the state of involvement of
government activities in the business which can impact business growth negatively. This factor
includes government policies, political condition of government of the market to formulate
effective strategies and increase the efficiency of the business effectively (Kholod and et.al.,
2019). This going to be costly for the organization but they will have to invest so that they can
get the stability in the organization better. The rules which are being used in European will no
longer be applicable in United Kingdom and vice versa which has to be taken care of by the
company.
Economic Factors
This factor helps the business to understand economic activities of the market which
helps the business to contribute I the economic growth effectively. The prices of the aviation fuel
have increased which needs a lot of investment in the company and the prices of the tickets will
get higher as well. Brexit created the situation of recession in the UK market and also impacted
the sales of Ryanair as it is very essential for the company to understand all the factors to survive
in the market. Company has to reduce its prices and compromise in quality to reduce cost to
survive in market effectively (Ivanova, 2017). Low economic growth of UK has resulted in high
unemployment this helps the company to find low cost employees and reduce the cost of
operation effectively. There are a lot of changes which are taking place at the airport which can
be a great threat or challenge for the company because there are going to be a lot of changes
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which are required in the company because of that factor so that the customers can feel
comfortable with the services of the company.
Social Factors
Social factor helps the business to determine the variation in the behaviour of customers
due to certain factors that are related to beliefs, cultures, values, tradition of the population.
Ryanair analyses that due to recession company has reduced their expenditure and standard of
living has declined and the prices of the company is increasing but since the majority of the
customers of company is from middle social class it is very difficult for the company to survive
in the competition. The middle class customers will not be able to afford the changes which are
taking place in the company. The expectations of the customers has also changed to get more
quality of services in fewer prices this impacted the profit margins. Extra services which the
company is providing to the old people of the society can make the company get customers in
Ryanair which can be a great opportunity to compete in market.
Technological Factors
Technology also helped company to increase its digital presence in the market and
increasing its customer base effectively. There is an addition of artificial intelligence in the
technological aspect of the company which can make the company have a better productivity for
them which is going to be very helpful for a long run. The investment which will be required by
the company is going to be huge if the company wants the customers to have a better experience
with Ryanair. There are a lot of technological changes which are taking place in the company
and the employees will take time adapting to the changes so that they can have an effective
functioning for themselves. Customers want online services which Ryanair has got in the
company so that they can get a large customer base for themselves which is going to be very
helpful for the company to grow.
Environmental Factors
Due to increase in environmental concerns there are many policies and governmental
regulation imposed in airline industry (Gonçalves, 2018). Ryanair has used these policies and
regulation in favour of the company and switched to eco-friendly fuel and raw materials of the
flights to reduce carbon emission. Ryanair is also actively contributing in CSR to increase its
goodwill in the market effectively.
Legal Factors
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