SWOT and PESTLE Analysis of Ryanair: Evaluating Opportunities and Threats

This report provides a SWOT and PESTLE analysis of Ryanair, evaluating the opportunities and threats for the company. It also discusses the importance of corporate social responsibility and suitable leadership styles for the company.

CONTEXT OF BUSINESS

Table of Contents.
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A SWOT and PESTEL analysis for Ryanair...............................................................................3
PESTLE ANALYSIS..................................................................................................................5
Evaluating changes in PESTEL factors has influenced the Opportunities and Threats business6
Analysing PESTLE factors and evaluating two leadership styles will suit the business with
relevant theory.............................................................................................................................8
Discussing the importance of Corporate Social Responsibilities for Ryanair.............................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is being defined as the organization which uses various strategies as for
achieving the goals in effective way. Strategies of businesses is comprising combination of
various factors which helps in taking decisions and accomplishing goals as for attaining
competitive advantage. These are actions which helps in attaining goals and achieving desired
objectives. Setting strategies of business is important as it helps and serve as guide for attaining
desired goal and gives purpose for securing and gaining competitive advantage. Ryan air is the
recognized as the leading company for offering budget airline services by scheduling passengers
flights. It carries large amount of passenger flights internationally. It is offering low costs leisure
services to consumers. This report provides details about analysing companies internal and
external environment by conducting SWOT and PESTLE analysis. Further, with PESTLE
analysis evaluating factors which influences opportunities and threats of business. Also,
identifying two leadership style which suits Ryanair with using theory. Lastly discussing
importance of corporates social responsibilities for Ryanair with examples.
MAIN BODY
A SWOT and PESTEL analysis for Ryanair
Analysing the pestle factors helps in evaluating companies’ external factors impacting the
internal operations as. Rayan air is and operating as the largest budgeted airlines scheduling and
carrying international flight of passengers.
Strengths
 Providing flight at the low fares and
lowest unit cost to all the consumers.
the average costing of the fares is lower
than the other competitor providing
aviation services.
 Largest airline which are transporting
the large consumers than any other
airline.
 With the stable financial position helps
the company to grow in new markets
Weakness
 With the bad reputations is recognised
as the company’s weakness as it is
tagged with the name of worlds short
haul airlines, consumers (Barqueira,
Quadros and Abrantes, 2022). also
expressed dissatisfaction with arising
variety of issues including charges,
seats, bad consumers services and
issues regarding the CSR.
 The company main weakness is it is

with predatory pricing.
 Ryanair is the largest airline which is
having string bargaining power against
its competitors.
 With the strong management focus by
the company enables it for finding new
ways for keeping the blow cists fates
and costs of their operation (Abdul-
Kadir, Sadat and Sadick, 2020). As by
introducing of charging bags aims for
reducing checked bags which reduced
the handling costs.
gaining and earning seasonality
earnings during summers only, this
represented the loss into winter season
in one quarter for the company.
 With the strikes consisting of over pay
due to over working in company, the
pilots an various cabin crew member
walk out on union strikes force
company for cancelling many flight
resulted in loss.
Opportunities
 Borrowing the large amount from the
government provide various
opportunities to the company in respect
of the receiving interest via agreement.
 With offering new range of product in
market as of business travellers has the
opportunity to group the large market
share as providing services for offering
range of features as single fee, booking
flexibility, security lane and reserving
rows with premium seats (Ryanair
SWOT Analysis, 2022).
 With improving the consumers service
as of designing the website in more
attractive manner and providing easy
booking by introducing mobile app,
relocating with the seating, removing
Threats
 Due to covid company faced many
restrictions and various rules and
regulations by governments with
inconsistent for handling the operations
resulted in delay in recovery of crises
which is a threat.
 Accidently not able to defend the
position about establishing the low cost
fares as media advertises and regulated
information about the company reduces
safety measures as for serving low cost
to consumers, for the inability to defend
this statements by the company resulted
in loss and bad reputation in front of
many consumers (Dubis and Cybowicz,
2021).
 With the weak GDP level resulted on

baggage restrictions provided
opportunity to group the target
consumer market by offering low cost
and fare flights.
reducing the price of flight tickets post
covid.
 Various fluctuation into process of fuel
resulted in loss as for operating the low
operating cost products with reducing
profitability.
 Competing mainly on prices is unlikely
for the company, as for this competing
and producing products and attracting
consumers whelps in competing on the
other factors and attracting and
grasping large consumer base.
PESTLE ANALYSIS
Pestel analysis helps in analysing companies external factors and its impacts on Ryanair
aviation industry.
Political factors
The environmental rules and regulations affect the company’s profits, also with the
increase in taxes resulted in reducing company’s sales of flight tickets. Various rules relating to
the impact of corona pandemic reduced companies’ profits also the quarantine regulation
imposed many challenges for the company (Henry, 2021). Also due to Brexit impacted company
as with regulation regarding entry from borders, emigration laws and customs.
Economical factors
Various economic factors such as changes in prices level of oil. Also wakening of the
pound rates impacted company negatively. Also, the instability into the fuel prices resulted into
the major problems for the company. Also, recession into the UK, country will impact the
company at wider level the market for the UK declined as due to Brexit the taxes imposed
between both the countries impacted demand for the travelling.
Social factors

Changing habits from the britishers impact the company’s operations and profits. As
britishers are the only major target market as much interested for taking the holiday packages
from the Ryan airlines. the change in preference of britishers are impact companies’ sales and
low-cost flights earnings. Also consumer services impact the company, as by not paying prices
high impact the customers services to large level. Also, the lifestyle changes and other factors
impact the company operations.
Technological factors
Integrating digital channels and various social media platform with the services provided
by the company is necessary. As with the growing technical adaptations in market constantly
changing technology as of communication strategy and many other of prcdibg services to the
large low-cost fare consumers impacts the company. Adopting proper strategy as for acquiring
the target market with adapting latest digitisation of the technology impacts and helps in gaining
the large target markets. also adopting the mobile banking system for the company is necessary
to attract and gain consumers with cash less payments.
Legal factors
Changing into the laws as for operating the aviation industry and various restrictions due
to pandemic and crises impact company operations. The changes in legal laws of the UK impacts
airline. also, restrictions from Brexit and legal laws reduces demand for the travellers. also due to
union laws of the labour actions and strikes against for protesting towards the poor pay and
working conditions impact Ryanair.
Environmental factors
Factors impacting company as for environmental concerns are the emission of the carbon
impacts operations. restrictions on carbon emission impacts company operations also being the
low-cost airlines causes carbon emission. Using recyclable plastic and investing with taking
initiative as for recuing the carbon emission on environmental products as for serving into
recycles packaging. Non recycles impacts environmental and other climatic changes impacts the
flying and taking off th flights to other countries.
Evaluating changes in PESTEL factors has influenced the Opportunities and Threats business
With analysing all the factors affecting company as of PESTLE factors. Influences of the
factors on grasping various opportunities and threats are as follows: as with analysing all the
external factors affecting business, with changes into governmental laws and various regulations

impacts the company’s opportunity as for establishing and reaching to target market. Also, with
the restrictions made by the Brexit and covid impacted the opportunities as for providing
improved services to consumers. this is because due to restrictions of travelling from one place to
another due to pandemic imposed by governmental, it impacts the traveller from various
countries and flights to international countries at low cost declined and reduced sales which
impacted companies profit earning margins. As with imposing Brexit, complete leaving the EU
market declined the company’s profits margins, also the large travellers of the Ryanair as mainly
the britishers are mainly purchasing the holiday packages from the company.
Also, the pestle factors influence threats of the business as the changing with the process of
fuels and the cost of operating various internal operations of Ryanair impacts company. As it
hinders the competitive factors by the company is establishing the low-cost fairs and earning low
revenues with less profits, as with regularly fluctuating the fuel price and current fluctuations
impacts the working and traveling the flights from one country to another. this reduces the profits
and growth of company to large extent. Furthermore, with the factors of economy as impact of
covid on company helps the company in growing the opportunity from borrowing and taking
funds from banks for growth and expanding the business operations and providing proper
supports services to the company.
Furthermore, the impact of covid had severely impacted various other aviation
businesses. This provides opportunity for the company to expand and purchase more planes at
lower cost which helps in further growing the market and producing various traveling service to
consumers. Also, the Pestle factors influences the threats of the company as from the
governmental rules and regulations and restriction due to covid and various uncertainties impact
the business (Visser, 2021). For this the company is taking step as by maintaining consistency
plan for the recovery of losses occurred due to pandemic uncertainties.
Examples are: Company is utilising strengths for reducing threats are, as for instance
merger and acquiring with various other businesses for sharing codes and consolidations provide
great opportunities to the company as by mitigating threats and helps in sustaining the growth in
future. Also providing the low-cost fares and operating the airlines at low-cost services helps the
company in achieving success and competitive advantages for the long run.
Examples for the Weakness affecting its opportunities are: with serving very poor quality
and not focusing on providing best consumer services is the biggest weakness for the company.

This hinders the opportunity as for entering and adopting corporate social responsibility and
serving consumers with the upmost safety and priority by reserving flight of the Ryanair.
Another example is for stable the poor relations with employees as for not providing adequate
working wages as for overtime, with this striking of various employees on the labour unions
impact the company opportunity as for travelling and providing various services to consumers at
low fares and growing into the competitive environment with higher level.
Analysing PESTLE factors and evaluating two leadership styles will suit the business with
relevant theory
Leadership styles are those which is used by the leaders of the company as for guiding,
directing, motivating and influencing the behaviour of the company staff and workers working as
for serving and achieving profits for the company. Adapting suitable leadership style in company
paly key role in influencing and communicating with the workers as for performing into the
desired manner for achieving success. it also helps in assessing and building the string and
predictive relations with the teams and workers working into the airline industry. With analysing
the pestle factors, suitable leadership style adopted by the company leader.
Autocratic leadership style where all the important decisions is taken by the Ryanair
leader. It has the individuals control over all the activities pertaining to the companies’
operations. Taking individual decision and not encouraging team, members by welcoming views
ingot decision making process. The leaders take all decisions based on beliefs and values
possessed, and not involving workers into decision making procedure. Adopting these styles
helps in leading business at low-cost fares and providing airline services with acquiring low cost
from all the consumers. as leaders of company is dedicated for increasing profit and sales of the
flights. adopting cost cutting strategy helps the company and all the workers performing and
contributing large part as for serving positively. Being strict and rude behaviour as of taking
decision impacts the company in certain ways. As by adopting the autocratic style of leadership
by the Michael O leary, as by possessing mixed characteristics as managing and working for
achieving the high standards goals as for increasing profits and providing consumers satisfaction
with establishing low-cost fares flights. With this style leaders of the company gives instruction
to workers and other staff members as crew members ana expecting from all to work and achieve
the desired results.

Also the other suitable style is the transformational by emphasising and influence
individuals with taking the major decisions and transforming the company for achieving success
and desired mission, vision of company. Transformational leadership theory: Transformational
leadership theory explains about, company leader is taking decisions and identifying needs for
adopting changes and guiding employees as for influencing and adapting changes in company.
This leadership theory is adopted by the transformational leaders as for motivating all the
workforce for creating change and sharing future by adopting and taking various decisions. The
Ryanair leader is mainly focusing on the taking and leading decisions. The leader of the
company is role model to other as by taking majority of the decision and establishing the
standards. With raising the team by taking, establishing own standards. Being a transformational
leader of Ryanair aid in raising team, morale by encouraging team members as for following the
decisions taken by the leader of the company. The main purpose of adopting this leadership
theory is to transform the company by making and serving into productive way.
Discussing the importance of Corporate Social Responsibilities for Ryanair
Corporate Social Responsibilities are the practice which is undertaken by company in
order to cope up with economic, environment, changes. In this company establishes and takes
various initiates and programs as for building and reducing implications of all these factors on
society. CSR is the business approach which plays important role in the Ryan air, as it helps in
making various decisions according to organizing flights maintaining all the responsibilities up
to date as for attracting users with adopting sustainable development. Various firm create the
CSR as for attracting and motivating employees as by establishing social welfare programs for
achieving success. As the company is low-cost airline which offer services to large consumers at
low cost (Turker, 2018). CSR benefits aviation companies in earning profits with maximising the
responsibilities socially which helps in driving business by achieving maximum advantages. For
gaining competitive advantages companies must have good CSR for positioning itself.
But maintain position in the dynamic market Ryanair is suffering from bad reputation and
issues related to CSR. As it is being recognised at 10 th position form the lot of aviation
companies. Rating system was regarded with considering the environmental performance and
CSR of the company. With this ranking company’s reputation and brand image became negative
in front of large number of consumers. As issues arise as for posting the misleading information
as for contributing at least 2% in emitting carbon di oxide emissions for UK. The company was

criticised for infirming and communicating false information about green emissions.
Furthermore, various misleading process and information about the company as by taken it
website off by giving false reason as of the aviation is increasing its capacity of consumers for
visiting sites. Furthermore, company is also mistrusting and misleading large consumers by
giving statements about giving false information of giving vouchers when aviation flights
cancelled was not given by company (Simón-Moya ed., 2020). As by all these false statements
shows company is not operating and taking care of consumers, as mainly focusing on increasing
profits for the company.
But from all these points company resolved and taking various measures for contributing
towards the CSR as, Examples of company as making promise for giving the low-cost fair prices
by cutting down cost for giving and booking airlines tickets for the consumers at reasonable and
fair prices as lower than others (Park, 2019). For these changing consumers policies as for not
giving voucher and booking room for consumers, by avoiding cancellation of flights and
reaching on time.
Moreover, as with resolving ither misleading information issues as of green practices and
the website off, company starts arising these issues as by giving proper instances and reasons
about making their stand and resolving these issues for not occurring in future as this leads to
loss for the company by reducing profits as breaking consumer trusts. also operating cosy
leadership strategy as for giving low-cost aviation services to large number of consumers as by
aligning various resources also opting no frills airline operators as for cutting and establishing
minimum cost. as of maintaining low-cost strategy by providing airline services for reaching ad
travelling internationally. As for giving moderate luxury and comfort to consumer, company is
charging the cost for using washrooms on the board also taking snacks and other drinkable items
charges cost from consumers as for ensuring low cost far flights (Kuo, Chen and Meng, 2021).
Furthermore, company is making policies according to uk aviation regulation as by giving
training to all aviation stag regarding using all equipment’s with recoding details of pilots, flight
attendants. working conditions for the aviation is covered with temperatures and standards of air
quality. further various actions taken by Ryanair as of operating with all the legal laws and
socially responsible as for resolving CSR issues.

CONCLUSION
From the above report it can be concluded that strategies for businesses plays very
important roles as for guiding and directing business for achieving objectives. Strategy of
business combines various decisions by securing competitive position for operating in dynamic
market. With using pestle factor helps in defining various factors affecting internal operations of
business. With the swot analysis helps in defining about the strengths, weakness, opportunities
and threats which impact business operations. As effective leadership styles help in boosting and
creating by cultivating sense of belongingness by creating environment of trust, by promoting
team working. Also, CSR are the practices which is undertaken by the management as for
influencing positively to all the consumers. It is mainly the commitment made by company
towards the managing the social, environment and other factors which helps in fulfilling public
expectations.

REFERENCES
Books and journals
Abdul-Kadir, A., Sadat, A. A. and Sadick, A. A., 2020. Global strategies of the airline industry: a
case study of Ryanair, Emirates, NetJets, and Thomas Cook. student. 3(3). pp.204-217.
Barqueira, A., Quadros, R. and Abrantes, J., 2022. Airline booking applications: the case of
Ryanair, Easyjet and tap air Portugal. Aeron Aero Open Access J. 6(1). pp.7-15.
Dubis, D. and Cybowicz, S.,2021. SWOT ANALYSIS AS A TOOL FOR ASSESSING THE
ENVIRONMENT OF ORGANIZATION IN THE AVIATION INDUSTRY Category: M11.
Організаційний комітет. p.41.
Henry, A., 2021. Understanding strategic management. Oxford University Press.
Kuo, T. C., Chen, H. M. and Meng, H. M., 2021. Do corporate social responsibility practices
improve financial performance? A case study of airline companies. Journal of Cleaner
Production. 310. p.127380.
Park, E., 2019. Corporate social responsibility as a determinant of corporate reputation in the
airline industry. Journal of retailing and consumer services. 47. pp.215-221.
Simón-Moya, V. ed., 2020. Knowledge, Business, and Innovation: Economies and Sustainability
of Future Growth. Emerald Publishing Limited.
Turker, D., 2018. Corporate Governance and Social Responsibility. In Managing Social
Responsibility (pp. 59-72). Springer, Cham.
Visser, M., 2021. Strategy and Business Models. In Digital Marketing Fundamentals (pp. 30-66).
Routledge.
Online
Ryanair SWOT Analysis. 2022. [Online] Available through: <
https://www.edrawmind.com/article/ryanair-swot-analysis.html>
PESTLE Analysis of RYANAIR. 2022. [Online] Available through: <
http://www.thestrategywatch.com/pestle-analysis-of-ryanair/>