Study Case for Ryanair

This report includes a case study of Ryanair, an Irish budget airline, analyzing its SWOT and PESTLE factors, identifying main problems requiring immediate attention, and proposing solutions.

Study case for RYANAIR

Table of Contents
Study case for RYANAIR...............................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. SWOT and PESTLE Analysis for the Company.....................................................................3
2. Main Problem of Ryanair requiring immediate attention........................................................6
3. Solution to identified problem.................................................................................................8
4. Reflection...............................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
This report includes case study of Ryanair, an Irish budget airline. This was founded in
1984 and is headquartered at Dublin Airport, Ireland. The case study includes some of the
problems which are being faced by the airline. This includes analysis of strength and weaknesses
of Ryanair and opportunities and threats which are available to the company in its external
environment. This report also includes discussion and analysis of various factors which are
available to Ryanair in its macro environment and what impact do the factors make on operations
and functioning of the airline. Later some of the problems of the company which require
immediate attention have been listed and solutions that company can have for problems have
been proposed in later part of the report with the help of managerial theories and concepts. Lastly
experience while writing report have been included in this report.
MAIN BODY
1. SWOT and PESTLE Analysis for the Company
SWOT Analysis
This includes identification and analysis of the four factors concerned with a company.
These are strength, weakness, opportunities and threats of the company (Bull and et.al., 2016).
SWOT analysis of the Ryanair is as follows-
Strengths of Ryanair
 Strong existence in European Market by covering 200 destinations and 1800 routes.
 Ryanair’s low cost strategy base is a key competitive advantage.
 Strong balance sheet and consistence shareholder return.
 Low fares and consistent timings of the airline.
 Largest short haul network in Europe.
 Airport Choices of Ryanair.
 Fast Turnaround time.
 Innovation.

From the strengths it can be said that either Ryanair is a low cost airline, but unlike other low
cost products it does not compromise with its quality. Ryanair along with cost effective its
operations and functioning is also effective and able to provide high quality services to its
customers all these are important strength of Ryanair which enable it to achieve competitive
advantage and stand strong in the competitive place.
Weaknesses of Ryanair
 Fleet expansion may resulting in overcapacity of the airline.
 Labour relations and low employee satisfaction.
 Brand perception about Ryanair.
 Seasonality of Earnings.
 EU Sensitivity.
Along with strength Ryanair also have some weaknesses (Büyüközkan and Ilıcak, 2019).
Weaknesses like overcapacity of the airline affect profitability of the comopnay and for a low
cost airline there is no requirement of airline. Another weakness of Ryanair is concerned with its
employees and this is not ideal for any company to have employee relations compromised these
directly affect performance of the company and for airline these might affect its customer
service.
Opportunities of Ryanair
 Focus on customers through its programs always getting better.
 Opportunities in declining charter flight segment.
 Market Growth and increase in market share.
 Economic Oulook.
Opportunities are known as chance for the company to increase its profit and its productivity.
Opportunities also allow chance of increasing market share and growth of Ryanair
Threats of Ryanair
 Increasing and fluctuating fuel prices are a threat that might affect profits.
 Increasing corporate tax in Ireland.

 Taxes on air travel.
 Loss of management focus.
 Competition from low cost regional carrier.
As the opportunities give chance to achieve objectives in better way (Düking, Holmberg and
Sperlich, 2018). Threats on the other hand create hindrance in achieving objectives.
PESTLE Analysis of Ryanair
Political
This factor includes impact and effect of political decisions on the operations of the company.
Ryanair which is a airline company political factor make significant impact on the company.
Increase in tax and tax rates are different in various countries and this may impact cost and fares
of the company (Perera, 2017). This makes negative impact of the sales of the tickets.
Government of UK have increased tax of both long and short haul flights.
Economical
Economic factor of the company includes prices of fuel, which increase the cost and result in
increasing fares. This affect benefits and profit of the company but fuel prices have started to
decrease which is positive for Ryanair. Economic factor also includes factors such as GDP,
spending habits of the people of the country and UK people are ready to spend for the flights.
And in this less fares of Ryanair are an added benefit for the company.
Social
Holiday travelling and orientation of British people for air travel are key factor affecting the
perception of the people. Number of people in UK is increasing for holidays which is beneficial
for Ryanair. This is beneficial for its long and short hauls flights of Ryanair (Gupta, Gupta and
Gupta, 2019). These increase sales of both type of sales and low cost flights are preferred by UK
passengers. Negative media coverage on its employees and customer service affects this factor
and might reduce customers and customer loyalty.
Technological

This is very important for the success of the companies. In this technologies being used in flight
and for operations of the company both are important for the success of the company.
Technological advancement in Ryanair have enables it to keep its cost low and this is one of the
biggest advantages of Ryanair. Technology also is important for its various operations and
customer service like online ticket booking and various type of digital and social media
marketing.
Legal
This aspect is considered with those rules and regulations which govern airline and its
operations. Ryanair needs to imply and follow rules and regulations of both EU and UK (Vallati
and Grassi, 2019). This might create difficulty for airline and also they cannot operate freely.
Due to Brexit flights might get suspended from certain countries of EU and this may reduce
business of Ryanair.
Environmental
Carbon footprint has become alarming point and centre of various organisations’ attention. This
requires that Ryanair work on its flights and technology in order to reduce its carbon footprint.
EU may also impose restrictions on carbon emission, which may create difficulty in operation of
the airline.
2. Main Problem of Ryanair requiring immediate attention
Ryanair airline is facing many problems which includes, increasing cost, Brexit
uncertainties and staffing issues and negative media coverage. All these are significant problems
because increasing cost have direct impact on profitability of the airline like either they have to
reduce their profit or they might go for increasing fare (Barrett, 2016). Increasing fare is not a
well suited option for a budget or low cost airline and this is why their profitability will get
negatively affected. The increasing in cost is because of two important reasons one is increasing
cost of fuel and other is increasing corporate taxes.
Brexit uncertainties also affect operations negatively because this impact
operations of Ryanair in other EU countries. Flights of Ryanair might get suspended from certain
EU countries and this will reduce customers and market share of Ryanair.
Staffing issues are also important issues and problems and all the

companies no matter what need to have competent employees and staff which can effectively
carry out all the operations of the company. Staffing issues and adverse relations with them
affect that Ryanair might lose its effectiveness of operations. This can also affect Ryanair and
create in future when it seeks to hire talented and competent employees.
From all the problems mentioned above problem of negative media coverage is very
significant and requires immediate attention of Ryanair. Negative media coverage includes
Ryanair’s customer service, employee relations and disputes. Negative media coverage is
anyway not good for any company and organisation but in relation with Ryanair the media
coverage which is negative also covers customer service, employee relations and diputes of the
airline (Vallati and Grassi, 2019). This makes the problem more difficult and worse and requires
immediate attention of Ryanair.
Why these require immediate attention is because-
Customer service most important aspect of a company marketing and also image and
goodwill of a company depends on the value it gives to its customers and quality of the customer
service. High quality of customer service also allows company to attract more customers towards
it and help in maintaining customer loyalty for a company and a brand. Media is a powerful tool
in making and affecting perception of the customers for a particular brand and through negative
media coverage perception of customers will be negatively affected. Once through negative
media attention company have lose its goodwill and all above that its customers it become really
difficult to gain those customers and build that goodwill.
Because of negative media coverage company can also face difficulties from the side of various
organisations working for consumer benefits. This is also a reason that Ryanair needs to pay
immediate attention to this problem.
Another important factor being covered in media and which is important for company is
employee relations (Gupta, Gupta and Gupta, 2019). There are various organisations which are
working for the purpose of employee welfare and because of this media coverage Ryanair might
have to deal with such organisations. Current employees of organisation also can take advantage
of this and along with that it will also restrict those who are competent and willing to work for
Ryanair. Employees of the company are one of the most important part of the company and they

get affected because of this and this will also impact performance of the employees of Ryanair.
This also affects image and goodwill of the company which is very difficult for the company.
Disputes of Ryanair with its pilots over its working conditions and compensation have also been
covered and along with this some of the internal disputes like between shareholders and board
members. All these are not good for its image and Ryanair might face difficulty because of this
as this may lead to reduced business of the company and also impact its operations as pilots are
not working for the company. Coverage of Ryanair for compensation also is not good and peole
and candidates might restrict themselves to work for Ryanair. This also raise a question on
ethical working of the company and because of all these reasons company needs to pay
immediate attention to this problem. Media problems are also more important as media always
shows things with an exaggeration (Düking, Holmberg and Sperlich, 2018). This make the
situations look bigger and worse and company needs to pay attention to this along with solving
problems being faced by the company.
3. Solution to identified problem
Problem being faced by Ryanair is really significant and difficult and can make important
and long lasting impact on image of the company and which will affect its profitability and
productivity. Ryanair for solution of the problem needs to take actions to solve the problem. This
problem can be solved with the help of CSR theory.
Theory of CSR refers to theory gives a model to the companies through which they can
self regulate their responsibility for the society. This is why the theory is corporate social
responsibility. In this company takes various measures through which it can help society and add
value in life of people through various measures (Demirag, 2018). Other than this through CSR
company also ensures that company is able to reflect its values and this help companies to build
up positive image in the society and this will ensure and contribute in removing the impact that
media coverage had on the people.
Improving social image and such can be a strategy but for Ryanair accepting this is
important as this will enure that company is following ethical policies and CSR also includes that
company is taking care of its internal people who are working for the company and as pilots are
one of the most important asset that Ryanair have, practicing CSR will ensure that Ryanair does

not harm and take undue advantage of its assets. Through CSR company will pay adequate
compensation to its employees and along with that the company will also see difference in
attitude of pilot towards them have changed. This will ensure that company does not have any
dispute with its pilots and other people of companies also work in coordination with its strategy.
Another theory that company can use in this regard is Human Relation Management
Theory. This theory includes and considers that people want to be part of the system which and
team that facilitates growth and development. Basically as per assumption of this theory people
of the organisation desire to be part of organisation so that they can contribute in its growth and
development. It means that employees are required to give specific attention should be made feel
important in organisational context so that they can work better and remain satisfied in context of
their job. Employees therefore are required to encourage participating in their job role, they are
required to made feel that their job is important for organisational growth and development of
the organisational (Ronald and Malcolm, 2017). This theory was developed off employees and
their performance under various conditions. Later source of employee motivation were it
included that employees are motivated more than their relations in the organisation and
importance and attention which is given to the employees is more than the motivation they get
from the monetary rewards and benefits given to them.
Ryanair can also use this theory for solution of their problem. One of the most significant
problems of Ryanair is their employee relations and disputes with their employees. Through
effective use of this theory in various situations company can solve its problem. This requires
that Ryanair apply various programs through which they can make their employees believe that
they are important for the company. This can be little difficult for the company because the
employees are pilots and they are well aware that they are important for their company and
without them company cannot perform well in any conditions. This is why company need to
develop some of the important strategies to make its employees are valued in its companies. for
this Ryanair have to ensure that company also provide them their adequate and timely
compensation (Ronald and Malcolm, 2017). To make employees valued in Ryanair this also has
to ensure that it does not practice unethical regarding its employees. This will help Ryanair to
solve its problems.

4. Reflection
The case study on the company Ryanair has helped me to establish the clear understanding
regarding the different factor which are affecting the business in code to gains the captive edge
market. This case study helps me to have the clear level of understanding in term of various
aspects which are prevailing in the market which are such as the political, economic and social
factor. I have analysis the certain aspects regarding the current level of trends which are
prevailing in the markets which will have impact Ryanair to have the implication of various skill
as the market strategy. I have developed effective level of communication and problem-solving
skill which is more appreciable for personal development in more effective away. During the
internal analysis of the firm I have the analysed the company have the large level of
opportunities in the prevailing markets which can be achieved through the implication of the
strength and reducing it weakness in the company. I have developed by communication skill in
more effective way as the team embers have establish the better chain to communicates which
will helpful in over all developments of the personality. On the other hand, I have to major
attention on the presentation skills so that’s I can be able to the have the proper level of
presentation to the effective point. There is more level of developing in terms of analysing the
environmental analysis which is applicable to that’s understanding in term of the micro and
Marco analysis which have the clear consistency of the implication in terms of the PESTLE and
SWOT .
CONCLUSION
On the basis of above discussion and analysis it can be concluded that strengths and
weaknesses of the company are in equal proportion. But strengths are strong enough to reduce
effect of weaknesses of the company. Ryanair employs low cost pricing strategy and is effective
in both its short and long haul destinations. Being in UK Ryanair has managed to get success in
its short haul flights just like flights of long haul. This is because of social factor of the company
according to which people in UK prefers low cost price for their vacation and holidays. In this it
adds value that out of 10 around 9 people in UK go for holiday. This increase sales of the
company and make positive effect on its profit. Later some of the problems which are being
faced by the company and in this negative media coverage is very significant problem. Later
solutions for the problem were also included in this report.

REFERENCES
Books and Journals
Bull, J.W and et.al., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis
of the ecosystem services framework. Ecosystem services. 17. pp.99-111.
Büyüközkan, G. and Ilıcak, Ö., 2019. Integrated SWOT analysis with multiple preference
relations. Kybernetes.
Düking, P., Holmberg, H.C. and Sperlich, B., 2018. The potential usefulness of virtual reality
systems for athletes: a short SWOT analysis. Frontiers in Physiology. 9 p.128.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The
impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws,
pp.1-11.
Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE Context.
In The EMerging Technology conference (EMiT) 2019 (pp. 66-68). IET.
Demirag, I. ed., 2018. Corporate social responsibility, accountability and governance: Global
perspectives. Routledge.
Ronald, B. and Malcolm, W., 2017. The role of the Human Relations School vis a vis today's
Human Resource Management. Advances in Management. 10(10). pp.1-5.
Barrett, S.D., 2016. Ryanair and the Low-cost Revolution. In Air Transport in the 21st
Century (pp. 163-178). Routledge.