Pestle Analysis of Ryanair

This report provides a Pestle Analysis of Ryanair, including political, economical, social, technological, legal, and environmental factors. It also covers SWOT analysis, Porter's five force analysis, and a reflection on the skills developed.

Ryanair

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Pestle Analysis of Ryanair .........................................................................................................3
SWOT analysis- .........................................................................................................................4
Porter's five force analysis of Ryanair- ......................................................................................5
Reflection....................................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
Ryanair is an Irish budget airline founded in 1984, headquartered in Swords, Dublin, Ireland,
with its primary operational bases at Dublin and London Stansted airports. It forms the largest
part of the Ryanair Holdings family of airlines, and has Ryanair UK, Ryanair Sun, Malta
Air and Lauda as sister airlines. In 2016, Ryanair was the largest European budget airline by
scheduled passengers flown, and carried more international passengers than any other airline.
Ryanair operates more than 400 Boeing 737-800 aircraft, with a single 737-700 used primarily as
a charter aircraft, but also as a backup and for pilot training. The airline has been characterised
by its rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and
the success of its low-cost business model. This report also covers questions such as Pestle
Analysis of Ryanair, SWOT analysis, Porter's five force analysis of Ryanair, Reflection
The company has been criticised over its employee conditions and heavy use of extra charges. It
has also been noted for its intentional provocation of controversy as a means to generate free
publicity. As of 2019, it has been voted the least-liked short-haul Airline six years running in
surveys, and came last in a 2019 rating of 100 UK brands' customer service.
Main Body
Pestle Analysis of Ryanair
Political Factors-
The market is going to be uncertain due to the departure of UK from EU from march 2019 and
the company is concerned with the whole scenario of Brexit as the whole market of the aviation
industry is going to be uncertain. But if UK makes their way with EU for signing an open
agreement then Ryanair has no concerns as their market will be no longer uncertain. But chances
of that happening is less as UK will not remain in the type of agreement like this until the terms
are decided finally. If that happens the company has to put their focus aside from UK and focus
on other international markets so that they can achieve growth there. Company has to follow
these measure for at least 2 years until Brexit is complete. In the recent years terrorist activities

has been increased in countries such as UK, Belgium, France and Germany. But the hidden
agencies and intelligence of separate countries are working to reduce it.
Economical Factors-
Prices of oil is going to increase in the market which will affect the prices of airline tickets and
influence the customers to shift to a different airlines as Ryanair is a budgeted airline and if they
increase the prices then customer won't prefer it. To add the effect of Brexit is also the factor of
increasing the prices. (Piludis, Jones and Hansen, 2018)
Social Factors-
Some people feel that railways which is fast is better to prefer as they are safe, sound and
cheaper for the routes which are short. But it has been proved that airlines are the safest medium
of transport than any others.
Technological Factors-
Ryanair has to improve their services on the online platform so that it will be feasible and simple
for the customers. They have to improve their application on mobile and make the page of
website with a simple layout so that it does not confuse the customers and make them feel
irritated. Availability on these online platforms is strictly necessary for the company. (Thomas
and Thomas, 2015.)
Legal Factors-
The situation of Brexit will require Ryanair to make it necessary to comply with regulations of
UK and EU. The company is receiving state aid at some European airports.
Environmental Factors-
Legislation has been passed by the EU which states that it is compulsory for the airlines to
maintain the control of emissions. If the company exceeds the allowance which was set by the
government then the deficit will be held by the government as auctions. To improve the
environment company needs to reduce the emissions. (Myska, and Harasta, 2016)
SWOT analysis-
Strengths-
Ryanair has established their market in more than 200 destinations which covers 1800 routes.
Company has never disappointed their shareholders as they have maintained a consistent returns
to their shareholders. Balance sheet of Ryanair is strong which helps them to raise the money
from the market and invite general public by giving their prospectus. Company is a budgeted

airlines which means that they are sales oriented company and that gives them the competitive
advantage. Advantage for the local customers who want to fly down at the nearest cities is that
unlike other airlines Ryanair provides the facility for flying to small distance.
Weaknesses-
Due to the situation of Brexit many policies could change such as labour relations and changes
made to arrangements in compensation of employees this all changes can impact the business of
Ryanair. Company is expanding freely and aggressively which may arise the problem of
overcapacity in the future. (Wolf, 2016.)
Opportunities-
The company has a huge amount of scope to increase their profit through myRyanair. By
focusing more on improving the experience of customers it will increase the customer base of the
company and the company has the opportunity to do that so they can remove their tag of bad
service which the company faces a lot. Ryanair has no services for charter flights and now they
have the scope to do it. It is a good opportunity for the company as they have a chance to
establish the market in the charter plane division which will help in increasing the revenue of the
company.
Threats-
Increase in the rate of fuel can impact the whole business model and revenue of the company. It
is even a bigger threat for them as they are budgeted airlines and customers won't prefer a flight
who charges more and does not provide more services. For the last 2 years prices of fuel was low
which helped the company to run its operations easily but due to the environmental factors which
affect globally prices of fuel may rise which is going to be a major threat for the company as it
will affect their way of doing operations and profits. (Grant, 2017)
Porter's five force analysis of Ryanair-
Competitive Rivalry-
Ryanair faces a lot of competition from other airlines as there are many airlines who are
budgeted and offer their services at cheaper rates. Airlines such as Easy Jet, Go, Wizz Air etc.
Ryanair also faces a lot of competition from the companies as who will provide the service of
flying to shortest distance at cheap rates. Many times company has beaten other airlines because
company has the advantage of large fleet size. Their deregulations has made it easier for other

airlines to enter and operate in this industry and in the region of Europe. All of these factors
results in high competitive rivalry of Ryanair.
Threat of New Entrants-
It is not easy to enter in this industry as the cost of entering is too high. That is the reason why
barriers of the entry is high. As the cost of purchasing is high but even leasing them is not easy.
Even the cost of taking a slot at airport is not easy to get and takes a lot of money specially for
the airlines which are new. (Giorgi and Raffini, 2015, )
Bargaining Power of Suppliers-
In this industry there are only 2 companies which manufactures the planes and they are Boeing
and Airbus. Ryanair buys their planes from Boeing and they are one of their highest purchasing
customers of Boeing in the country. It was noted that even at the time of post 9/11 era the
company did not hold back. That is why Ryanair holds a special place in the account of Ryanair
as they are one of their biggest buyers and they provide them planes at discounted rates.
Bargaining Power of Buyers-
Ryanair does not have loyalty of customers and loyalty of brand. Customer only use their
services because they get the services at low rates. Low fares will switch the customers to other
brands as there is no cost of switching. If anyone makes a move such as increase the price then
customers won't think in changing the airlines.
Threat of Substitutes-
There are various modes of transport such as cars, buses, trucks and trains which people uses for
short distance over flights. They compare it on the basis of fares and see which option is suitable
to them. (Caputo, Borbély and Dabic, 2019)
Reflection
I have developed my skills of communication as it has helped me to develop my personality in
professional as well as in social gatherings. Earlier I used to get irritated, fed up of work and rude
with others but now with time I have improved my skills so that I can understand the things
clearly and make them explain to others in a simple manner. Even at the time of applying for the
job the employer saw my skills of communication after that he offered me the job at the required
destination. I maintained the conversation in a very formal way by maintaining the eye contact,
showing my proficiency in the vocabulary by explaining and negotiating the things easily. I have
started making the move by always listening first and then I present my ideas which are

appropriate to the situation accordingly in a clear and concise manner. Developing my skills
have helped me to ensure that I am able to manage and attend the interactions with our and other
organization. I have talked to many people including the owner of shops or people in schools etc.
I have presented information in front of many people. I used to get nervous when I was new and
it affected my work as I always wanted to finish the presentation as soon as possible but now
with time I have developed myself and now I just focus on my work and nothing else. I complete
the presentation with patience so that it does not affect my work and I give my best. It was not
easy for me as presentations are more than just explaining the figures and facts in front of the
screen. The most important thing is pitching. I took time but now I make the pitch in a very
convincing way so that it is beneficial for the company I work. (Caputo and Borbely, 2016.)
As a manager it is also necessary to have numeracy skills it is not
just mandatory for accountants or scientists. I had to face the situations in which I had to evaluate
the outcome of the decision and sometimes I failed which helped me to learn that how to do it. It
was important for me as if I didn't learn correctly I could have lost my job and company could
loose many opportunities. I learned and developed myself so I can know which move to make in
which situation and what will be beneficial for the company. I am aware of the possible
outcomes of the situation as I have learned how to evaluate the opportunity. I was aware what is
happening in the market. The flow of the market how is it and if or not the thing for which I was
about to take the move for the company. I have to evaluate and keep a count of all the factors
which could influence or hurt the company in a negative manner. Before making a move I
calculated the return of the step that if it is feasible or not and if or not it is worth the risk.
(Buchan, 2017)
In any case be it big or small if a problem arises it is bad and as a
manager I was the one who has to respond to the problem as organization held the manager
responsible for them. To develop these skill I learned that I had to take steps which are way more
creative because that was the only way I could counter the situation in the best way possible. I
took quick decisions as if I took more time company has to deal with more damage. Sometimes I
solved it with just my common sense as years of working has given me enough experience but
when the problem is more complex I had to analyze the threat and in situations like that more of
the practical and logical approach was needed for solving it. I had to do some research before
making a move as any wrong attempt will damage more and make it more complex which will

be more hard to solve. The decisions I took were always involved with the factor of risk so I
always calculated that if or not the decision is worth the risk for solving the problem if it is too
high then I thought of another measure which involved less risk so even if the whole situation
was jeopardized it would not affect the company that bad as it would have done before. Taking
the decision is an important aspect of this process as without it me as a manager could not have
solve the problems.
Taking decisions or building rapport or resoling the conflict or communicating
with others all is done by maintaining the coordination between employees. One person cannot
achieve the goals as compared to when they are together working in a team. Coordination
between depending on others needs to be maintained so that they don't think this work will be
done or handled by him, everyone needs to be a part of the team to achieve the goals. I made sure
of it that every person in my team has shown me that I can rely on them as they complete the
work on a fixed timeline and never stood the company for some personal reasons. I was always
open minded and gave respect to everyone from junior to senior. It never concerned me what
religion he or she follows. I never make the decisions or prefer someone in a biased way. This is
the only way I can work with my team in a respectful manner and they can work with me in the
same manner. (Barrett, 2016)
Conclusion
From the above studies it has been concluded that Ryanair needs to keep a check on he market as
after the situation of Brexit it is going to be very uncertain. The company needs to keep a check
on their prices as it is the only thing that attracts the customers. They also need to keep in mind
that if they don't improve their customer service then they will loose their customer base which is
very strong but they are facing the issues with attendants and there will be less cases of repetitive
fights. This report also covers the reflection of the report as a manager of the company.

References
Books and Journal
Barrett, S.D., 2016. Ryanair and the Low-cost Revolution. In Air Transport in the 21st Century
(pp. 163-178). Routledge.
Buchan, J., 2017. Lessons from Ryanair. Nursing Standard (2014+), 32(11), p.28.
Caputo, A. and Borbely, A., 2016. The firm’s strategy and its negotiation capability: the Ryanair
case.
Caputo, A., Borbély, A. and Dabic, M., 2019. Building theory on the negotiation capability of
the firm: evidence from Ryanair. Journal of Knowledge Management. 23(2). pp.240-
262.
Giorgi, A. and Raffini, L., 2015, December. Love and Ryanair: academic researchers’ mobility.
In Forum Sociológico. Série II (No. 27, pp. 43-52). CESNOVA.
Grant, R., 2017. Ryanair: matching the activity system to the strategy. The Business &
Management Collection.
Myska, M. and Harasta, J., 2016. Less is More: Protecting Databases in the EU after Ryanair.
Masaryk UJL & Tech., 10, p.170.
Piludis, K., Jones, O. and Hansen, T., 2018. Ryanair-Destination Unknown. LBMG Corporate
Brand Management and Reputation-Masters Case Series.
Thomas, M.M. and Thomas, M., 2015. Ryanair: success before love. Strategic Direction.
Wolf, H., and et.al., 2016. À la Carte Pricing to Generate Ancillary Revenue: The Case of
Ryanair. In Liberalization in Aviation. (pp. 207-216). Routledge.