Global Business Environment Analysis of Ryanair (BUS 301, Fall 2024)

This report provides a comprehensive analysis of Ryanair's global business environment. It begins with an introduction to global environment analysis, followed by a detailed SWOT analysis, examining Ryanair's strengths (low costs), weaknesses (seasonality, poor surveys), opportunities (customer service improvements), and threats (safety concerns). The report then delves into a PEST analysis, covering political, economic, social, and technological factors affecting Ryanair's profitability and operations. Finally, it applies Porter's Five Forces model to assess competitive rivalry, the threat of new entrants, the bargaining power of suppliers and customers, and the threat of substitutes. The conclusion highlights Ryanair's strong performance and future growth prospects, supported by references to relevant academic literature.

GLOBAL BUSINESS ENVIRONMENT

INTRODUCTION
Global environment analysis means that the analysis of the global environment of a
company. This analysis can be done at both macro or micro environmental level.
MAIN BODY
SWOT ANALYSIS
Strengths
Strength
Ryanair production cost and other cost are lower than there competitors.The biggest strength
of Ryanair is the low cost, the company has the lowest cost in the European airline. There main
strength is cost leadership.
Weaknesses
The seasonality earning acts as a threat as if there are problem in the boom season the sales
would be greatly affected. Also, the main weakness of Ryanair include that they are poorly
performing in a range of polls, surveys. This could seriously affect the brand image of the company.
Opportunities
The company is known for its quality services, they have a great opportunity in further
improving there customer services. The company could offer different packages with quality being
served for increasing there sales.(Pikhart, 2017)
Threats
The company has a strong safety record, but the low cost may create blunder that the safety
are compromised, this could act as a major threat and could affect the reputation of the company.
PEST
Political
These includes the labour laws, government intervention etc.These are the factors which
affects Ryanair long term profitability. According to these political factors the nation is seen more or
less attractive.
Economic
Ryanair must be updated with these issue or there may have serious consequences.These
are the factors which affect the overall success of Ryanair. These factors include inflation rates,
interest rates, exchange rates etc.,
Social
These are the social behaviour and cultural trend which impact the working of Ryanair.
These trends may require the organisation to change the product or services being provided by
them. These includes the attitudes and shared beliefs of the individuals.
Technological
For surviving in global business environment Ryanair must adapt these changes.This factor
has come into trend in the past decade when different industries started using technologies like
online services to provide there product all over the world. (Adekola and Sergi, 2016)
PORTER 5 FORCES
Competitive rivalry
There are a number of substitute available for Ryanair customer that provide the same
services at low cost like that of Ryanair so there competitive rivalry are very high.
Threat of new entrants

The industry requires large amount of investment to be made, therefore the threat of new
entrants are likely to be low.
Bargaining power of supplier
There are only 2 manufacturers of air planes which are Boeing and Airbus, therefore the
bargaining power of supplier is very high in this industry, so Ryanair must maintain good supplier
relationship.
Bargaining power of customers
there are variety of substitute available for the customers so Ryanair cannot increase there
prices to increase there sales as the customer will switch, therefore the bargaining power of
customer is high.
Threats of substitute
The threat of substitute is very high for Ryanair as company's like Wizz Air, Easy Jet etc.,
provide the same product at the same price. (Uchihira, Ishimatsu and Inoue, 2016)
CONCLUSION
From the above report we have come to a conclusion that Ryanair is performing well and
has good growth perspective in the future.

REFERENCES
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Pikhart, M., 2017. Managerial communication and its changes in the global intercultural business
world. In SHS Web of Conferences (Vol. 37, p. 01013). EDP Sciences.
Uchihira, N., Ishimatsu, H. and Inoue, K., 2016, September. IoT service business ecosystem design
in a global, competitive, and collaborative environment. In 2016 Portland International
Conference on Management of Engineering and Technology (PICMET) (pp. 1195-1201).
IEEE.