Comprehensive SWOT Analysis Report: Ryanair's Strategic Position

This report provides a detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Ryanair, a prominent low-cost airline. The report begins with an introduction to the importance of SWOT analysis for strategic planning, followed by an overview of Ryanair's background, including its founding, operational model, and market position. The analysis then delves into Ryanair's strengths, such as its low-cost structure, low fares, innovation, and size. The weaknesses discussed include brand perception and seasonality of earnings. Opportunities highlighted include improved customer service, new aircraft acquisition, and the introduction of business traveler services. The threats section addresses concerns related to safety perceptions, management focus, and competitive responses. The report provides recommendations based on the SWOT analysis, offering insights into how Ryanair can leverage its strengths, mitigate its weaknesses, capitalize on opportunities, and address potential threats, ultimately aiming to enhance its market position and ensure sustainable growth. The report concludes with a summary of the key findings and their implications for Ryanair's strategic direction.

SWOT Analysis of Ryanair 1
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SWOT Analysis of Ryanair 2
Contents
Introduction................................................................................................................................3
Organization background...........................................................................................................4
Strength Analysis.......................................................................................................................5
Weakness Analysis.....................................................................................................................7
Opportunity Analysis.................................................................................................................9
Threat Analysis........................................................................................................................11
Recommendations....................................................................................................................12
Conclusion................................................................................................................................13

SWOT Analysis of Ryanair 3
Introduction
It is essential to have a SWOT analysis done for the company since it can significantly help
in planning the long-term and short-term goals of the company. A SWOT analysis could also
potentially save the company, since the threats could lead to the destruction of the company 1.
It is thus essential for most companies to be able to identify the elements that cause harm, and
the actions that correspond to the elements 2. It is also essential to look for strengths and
opportunities that would help the company expand in the industry as well. The SWOT
analysis would increase the performance of the company by identifying the areas that are
weak and help decrease the risk that the company has as well. Thus, it is extremely beneficial
to the company.
1 Phadermrod, Boonyarat, Richard M. Crowder, and Gary B. Wills. "Importance-
performance analysis based SWOT analysis." International Journal of Information
Management 44 (2019): 194-203.
2 Bull, Joseph William, N. Jobstvogt, A. Böhnke-Henrichs, A. Mascarenhas, N. Sitas,
C. Baulcomb, C. K. Lambini et al. "Strengths, Weaknesses, Opportunities and Threats: A
SWOT analysis of the ecosystem services framework." Ecosystem services 17 (2016): 99-
111.

SWOT Analysis of Ryanair 4
Source: introsmmariana.com
The above image looks at the aspects of the SWOT analysis. The following paper looks at the
strengths, weaknesses, opportunities and threats that the organization Ryanair faces. There
are also recommendations for further action based on the SWOT Analysis as well.
Organization background
Ryanair is one of the most famous Irish airlines. It is a low-cost airline and was founded in
1984. The company's headquarters are in Dublin. In the year 2016, it was seen to be the
largest low-cost, or budget airline in Europe. The company is owned by Ryanair Holdings
family of airlines, and the sister airlines of the company consist of Lauda, Ryanair Sun and
Ryanair UK. It is based in the Dublin Airport, and in London Stansted Airport 3. The
company operates Boeing 737-800 aircraft and holds more than 400 such aircraft. It has
3 Barrett, Sean. 2015. "The Airline Business In The 21St Century". Journal Of Air
Transport Management 8 (2): 129. doi:10.1016/s0969-6997(01)00017-5.

SWOT Analysis of Ryanair 5
special aircraft that are used for Charter planes, as well as for pilot training as well. The route
of the airline mainly consists of Europe, North Africa and the middle-east.
The main reason for the success of Ryanair is the fact that was significant deregulations in the
aviation industry in 1997 in Europe. This led to the boom of the company and was the main
reason that the company was able to develop to the point that it has developed 4. The
company has a logo that changed in 2013, and another one from 2013 to 2015. The current
logo for the company is given below.
Source: Corporate.ryanair.com
Strength Analysis
The main strength of the company has been the low cost. Since it is a low-cost, budget
airlines, there are a greater number of passengers that can opt for this airline, because of the
basic fact that it is the only airline that they can afford. The average method by which this is
measured is the cost per available seat kilometre (CASK) 5. However, the cost efficiency of
the airline can be measured by cost per passenger or the cost per seat as well. In all of these
areas, it has been found that Ryanair has remained the lowest cost airline in Europe.
The second strength is the low fare. Because the cost is low, the fare would also be less. This
makes it an extremely viable option for families who might be travelling on a budget, or for
4 Buchan, James. 2017. "Lessons From Ryanair". Nursing Standard 32 (11): 28-28.
doi:10.7748/ns.32.11.28.s21.
5 Tomová, Anna, and Ivana Kirschnerová. 2015. "Network Strategies Of European
Low Cost And Hybrid(Ized) Airlines: Is Ryanair Unique?". Ekonomiczne Problemy
Usług 120: 119-138. doi:10.18276/epu.2015.120-09.

SWOT Analysis of Ryanair 6
individuals who cannot afford a luxury air carrier 6. The company’s average revenue per
passenger is lower than any of the competitors of the company, which is what makes it
unique as a company. This is only in the case of short-haul. The organization does not have
long-haul flights, which usually costs more per passenger anyway.
The final strengths would be the level of innovation and the size of the company. As
mentioned earlier, Ryanair is one of the largest companies in Europe and is one of the main
reasons that it can offer the level of innovation that it can provide. The company has 1600
routes in over 30 countries, which are spread across Europe, South Africa and the middle east
7. The company has been known to be the company that started the low-cost revolution in
Europe and is one of the first airlines to have the option of hand-luggage only travel, as well
as automatic kiosks that can help in dropping in baggage.
The following image looks at the graph for top-10 airlines in Europe.
6 Furse, Mark. 2016. "Testing The Limits: Ryanair/Aer Lingus And The Boundaries Of
Merger Control". European Competition Journal 12 (2-3): 462-483.
doi:10.1080/17441056.2017.1292719.
7 Pate, J.M., and P.B. Beaumont. 2006. "The European Low-Cost Airline
Industry:". European Management Journal 24 (5): 322-329. doi:10.1016/j.emj.2006.07.003.

SWOT Analysis of Ryanair 7
Source: CAPA- Centre for Aviation.
Weakness Analysis
The main weakness has been in the form of brand perception. It could be seen that even
though the company was able to provide the customers with just what they wanted the brand
perception of the organization has been incredibly bad. There is research that suggests that
brand perception is directly influenced by the perceived threat to the brand. This is primarily
because the brand is seen as a low-cost airline and all the negative connotations that come

SWOT Analysis of Ryanair 8
with the brand 8. There has also been significant reporting of the company, and it has been on
the receiving end of many criticisms, such as the no-frills attitude, and the employee relations
of the company. This has caused significant problems with the brand trust and brand loyalty
of the company as well. It also refuses to recognize any unions that the employees are in, and
has often provided misleading or controversial advertisement as well. All of these affect the
way that customers see the brand, which is in a very negative light 9.
The other weakness would be the seasonality of earnings. The following table looks at how
there is a significant change in every quarterly profit.
Source: CAPA- Centre for Aviation.
As can be seen from the table, there are changes in the quarterly profits; wherein one quarter
receives significantly more profits than the other. This pattern has become more pronounced
8 Düsseldorf, Irina. Ryanair. SWOT Analysis of the Leading Low Fare Airline. GRIN
Verlag, 2016.
9 Clark, John R. 2013. "Flying Friendly". Air Medical Journal 32 (2): 60-62.
doi:10.1016/j.amj.2012.12.003.

SWOT Analysis of Ryanair 9
since the years 2008 or 2009 10. It can also be seen that the company makes significant losses
in at least one of the winter quarters, where nobody uses the airline to travel. It can also be
seen that before the year 2008 or 2009, the company was able to make profits throughout the
year, even if the profits had not been to the level that the profits had become after 2008/2009.
This can significantly affect the company and the way that is perceived in the aviation
industry.
Opportunity Analysis
The first opportunity that is presented to the company would be improved customer service.
For years, the company had been the bane of every traveller's nightmare as the customer
service that had bene provided by the company had been truly horrible. However, over the
years, especially since 2013, the company has been able to make significant changes and has
ensured that the quality of customer service that is provided to the individual is kept in mind
11. The introduction of the new mobile app, as well as the newly redesigned website, have
been created to keep the customer in mind and to make their booking process as easy as
possible.
The next opportunity has been the introduction of new aircraft. In 2014, the company
announced the purchase of 100 new Boeing 737 MAX200. The main positive feature would
be that the number of seats would be increased from 189 to 197 12. This could have a
significant effect on the company and would be able to enhance the profit that is made by the
company as well. The new flights have also been kept in mind when looking at the fuel
10 Thomas, Mark. 2015. "Ryanair: Success Before Love". Strategic Direction 31 (8): 1-
3. doi:10.1108/sd-02-2015-0034.
11 Gudmundsson, Sveinn Vidar. 2015. "Limits To The Low-Cost Niche? Finding
Sustainable Strategies For Low-Cost Long-Haul Airlines". SSRN Electronic Journal 2 (5).
doi:10.2139/ssrn.2621767.
12 Zwanenburg, Amber. 2018. "2018/7 ‘Ryanair’ After ‘Ryanair’: Crew Member Still
Left Empty-Handed? (NL)". European Employment Law Cases 3 (1): 35-38.
doi:10.5553/eelc/187791072018003001008.

SWOT Analysis of Ryanair 10
efficiency since the CFM LEAP-1B engines of the new flights would be able to be 18% more
fuel efficient as well.
The following looks at some of the predictions that are made by Ryanair.
Source: CAPA- Centre for Aviation.
The final opportunity has been the introduction of Business travellers. Over the past few
years, there has been an increased number of travellers who travel for their business. This can
be seen in the way that the business plan has been created, keeping in mind the business
travel 13. This includes flexibility in the booking date, an extra allowance for some baggage,
fast track airport security, wherein the customer will be able to bypass any queues. It would
13 Leite, Diogo Luís Marques. 2018. "Ryanair Holdings PLC: Equity Valuation
Research". Hdl.Handle.Net. http://hdl.handle.net/10400.14/25343.

SWOT Analysis of Ryanair 11
also include the provision of a premium seat, which would be in the side, towards the wings,
towards the front and the back, where the legroom is extra, and it is comfortable.
Threat Analysis
There are three main threats that are faced by the company. The first threat has been
regarding accidents and safety. Although the company does not have nay issues with safety
so far, there are many reports in the media that suggest that the company is cutting corners in
regards to the safety of the consumer 14. It has bee suggested by the media that the low cost is
propositional to cutting corners somewhere, and this is done primarily in the sector of safety.
There is no truth to the rumours, but the perception that has been formed lingers in the mind
of the people, regardless of the proof published by the company.
The second threat would be the loss of focus of the management. It can be seen that any
distraction that the management has that takes away from the core strategy of the company,
which has been to provide low-cost, affordable, and fast airline services to the customers
would increase the chances of any problems for the company. The main deviation that could
have happened had been the purchase of Aer Lingus, which was a competitor, with a
completely different business plan, which focused more on luxury than the economical aspect
of it.
The final threat would be a competitive response. The business model that Ryanair has could
be considered to be unparalleled in the aviation industry in Europe. There have been
significant airlines that have tried to implement a budget model for the customers, and have
found to fail miserably 15. However, the shift in tactic and the introduction of the business
plan could throw the entire balance off the rails. It will still compete mainly on price, but
14 Caputo, Andrea, Adrian Borbely, and Marina Dabic. 2019. "Building Theory On The
Negotiation Capability Of The Firm: Evidence From Ryanair". Journal Of Knowledge
Management23 (2): 240-262. doi:10.1108/jkm-02-2018-0117.
15 Curmi, Franco, and Tanya Sammut‐Bonnici. "Innovation Strategy." Wiley
Encyclopedia of Management (2015): 1-5.

SWOT Analysis of Ryanair 12
there will also be an extent to which other dimensions of the competition will play a part.
This is a potential threat to the company, since many customers may find a service lacking.
Recommendations
The main recommendation to the company would be to ensure that the company sticks to the
low-cost model. There are several airlines that are operating around the globe that have the
luxury model of business and have plenty of customers. However, it is the budget airlines that
are limited 16. The business plan and tactic that is used by the company works for the
company, which is why it is essential that the organization stick to the plan that is
recommended.
Another possible suggestion would be to improve customer relations further. Customers who
are satisfied with an airline are more likely to recommend the company to their friends and
family. They are also more likely to use the airline again. Thus, it is essential that the
company keep improving customer service.
One of the major weakness of the company has been the fall in profits during the winter
quarter. There should be research that is done to find out the exact cause of the fall so that it
can be rectified.
Conclusion
The main strengths of the company have been the low fare, the low costs, the size of the
company, as well as the innovation level that the company has. The main weaknesses would
be brand perception and the seasonality of the profits or earnings that are made. The main
opportunities have been the improved customer service., as well as the provision of business
travellers and the purchase of 100 new Boeing 737 MAX200. The main threats to the
16 Liczmańska, Katarzyna, and Monika Kuczyńska. "values for the customer as the
main element model business airline Ryanair." Acta Universitatis Nicolai Copernici. Nauki
Humanistyczno-Spoleczne. Zarzadzanie 43, no. 3 (2016): 193.

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company would be the competitive response, the lack of focus of the management and the
threat of accidents.