Ryanair: Business Environment Analysis and Strategic Solutions

This report provides a comprehensive analysis of Ryanair's business environment, utilizing tools such as SWOT, PESTLE, and Porter's Five Forces to evaluate the company's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors impacting its operations. The analysis identifies key challenges such as increasing competition, rising fuel costs, and negative media coverage, while also highlighting opportunities for expansion into new markets and technological advancements. The report further assesses the impact of potential strategic solutions, such as technological improvements and market expansion, on the company's profitability and productivity. It concludes with recommendations for Ryanair, including employee training, thorough market research before entering new markets, and continuous monitoring of the dynamic business environment to adapt to ongoing changes and maintain a competitive edge. This report emphasizes the importance of conducting market analysis for companies to thrive in a dynamic environment.

REPORT FORMAT ABOUT
RYANAIR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of Business environment.........................................................................................3
Impact of potential strategic solutions....................................................................................5
Recommendations..................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
For the successful running of the business it is very necessary for the companies to
analyse their market and business environment. This is because of the reason that the business
exist in the dynamic business environment and frequent changes takes place which impacts the
business (Prajogo, 2016). The present report will discuss about the analysis of the business
environment for Ryanair within which the company’s business environment with help of some
tools. The Ryanair is an Irish airline company which was founded in 1984 and is headquartered
in Swords, Dublin. The operational base of the company is mainly in Dublin and London.
MAIN BODY
Analysis of Business environment
SWOT
This model is used to analyse the hidden strengths and weaknesses of the business
Strengths- the major strength of the company is that it is a leading airlines company
which is in the budget for even the middle and low class of people. Also, it has more holdings in
places like Malta, Lauda, Ryan Air in UK, the Ryanair Sun and many other holdings. It has a
strong operation and has around 419 planes.
Weaknesses- the major drawback is the increasing threat from the other competitors like
Easy Jet, BA, Lufthansa group and many other (Lee and Klassen, 2016). Also, there are many
cancellations in the company because of this there was much loss for the company.
Opportunities- the major opportunity for the company is to expand in new market such as
India, Russia, Morocco.
Threat- the major threat for the company is the increasing cost of fuel which also
increases the cost for the company as a result of which the profits for the company decreases.
One more threat is that there is also negative media publication of the company that it provides
no or poor training to their employees (Biancamaria, Lettenmaier and Pavelsky, 2016).
PESTLE
This is a tool which is used to evaluate the business environment within which the company
exists. The PESLTE for Ryanair is as follows-
Political- these are factors coming under the political and governmental sector which
either positively or negatively impacts the business. It states that if Iceland joins hands with EU

then Ryanair will have access to the new market which will increase the consumers of the
country (Khalid and Rahman, 2019).
Economical- this factor outlines all the possible changes which takes place in the
economic sector and which impacts the business. The major economic impact of economic factor
is that because of Brexit it affects the operation of UK and also the British Pound decreased
against Euro.
Social- these factors relate with the attitude and behaviour of the people living in the
society. As this company is a budget airline therefore, it is liked by most of the consumers as
many people believe and have perception that the cost of traveling by airline is very high.
Technological- this factor relates with the new and advance technology coming in the
way of business. This company was the first to use the online check- in system and provide for
application to manage the bookings. Also, new technology is of fuel efficient carrier from arrival
section to the departure section.
Legal- these includes the different laws and rules and regulations which the company has
to follow if it is doing the business. This includes the fact that company operates in many other
countries and now it has to follow different rules as every country has its own specific rules and
laws governing the business (Rastogi and Trivedi, 2016).
Environmental- this includes the protection of the environment in which the business is
running and operating. This includes the amount of carbon footprint which is emitted because of
the travelling through air. Also, the taking off and landing of the flights increases the noise
pollution in the environment.
Porter five forces
This is a model which is used in order to know the competitive position within the market. This
includes the following steps-
Bargaining power of buyers- this refers to the fact that the buying power of the buyers is
high that is they are large in numbers and have more power. This is because of the reason that the
consumers have many options to choose from and this is the reason that why consumers have
high bargaining power.
New entrants- this is the fact that whether the entry of new entrant is high or low. In the
present case this is low because of the reason that the entry cost is very high and already there is
tough competition.

Substitutes- this refers to as the fact that how many substitutes do the current service has
that is in place of ait travel what the consumer can choose from. Here the threat of substitute is
low and because of this the other modes of travel are not a threat like Euro rail and another road
transport (Mathooko and Ogutu, 2015).
Bargaining power of supplier- this is the fact that the power is much in hands of the
suppliers. This is majorly because of the reason that there are few suppliers and because of this
they have power of bargaining with the company.
Competitive rivalry- this is very high because there are many competitors who are
working within the same industry. Ans this is an issue because of the reason that there is low
brand loyalty among the consumer in this sector because there are many competitors.
Impact of potential strategic solutions
The potential strategic solution like improvement in technology or the new opportunity of
expanding in the new market. These all strategic solutions impact the business to a great extent.
This is because of the reason that all these solutions increase the business and its working
capacity. Like for instance if company implements new technology for example use of Artificial
Intelligence then this will increase the capacity of the business and now work of the company
will be done with more effectiveness and efficiency. This is because of the reason that all these
strategic solutions increase the profitability and productivity of the company.
Recommendations
The major recommendation for Ryanair is discussed in the adjoining points connected
below-
First and foremost, thing to do by Ryanair is that they need to train the employees of the
company with all the latest techniques which they are implementing within the company and also
train the employees in advance about the techniques which they are going to implement in the
future.
Another recommendation is that the company must do a proper market research before
entering into the new market. This is because of the reason that if the company does not know
that what are the trends going on in the new market and what is the political structure of the new
country then how Ryanair will operate in the new country. Therefore, it is recommended to the
company to they take a thorough market research before entering into that particular area or
country.

CONCLUSION
From the above study of the report it was outlined that conducting the analysis of the
market is very necessary. This is because of the reason that the company exist in the frequent
changing and dynamic environment and there are many changes in the environment on
continuous basis. For this the company constantly overlook the market and the changes taking
place in it and accordingly making necessary changes.
In the present report firstly, the analysis of the environment was done. For this first tool
used was SWOT analysis which helped the company in knowing its strength and weaknesses.
The other technique used was PESTLE analysis which highlighted the different factors of
external environment and their impact in the business. In the end the impact of the solution and
some recommendations were discussed.

REFERENCES
Books and Journals
Biancamaria, S., Lettenmaier, D.P. and Pavelsky, T.M., 2016. The SWOT mission and its
capabilities for land hydrology. In Remote Sensing and Water Resources (pp. 117-147).
Springer, Cham.
Khalid, L.S. and Rahman, I.A., 2019. Conceptual Model for the External Factors Affecting
Project Performance Using PESTLE Factors. Journal of Advanced Research in Dynamic
and Control Systems, 11(03-Special Issue), pp.246-250.
Lee, S.Y. and Klassen, R.D., 2016. Firms’ response to climate change: The interplay of business
uncertainty and organizational capabilities. Business Strategy and the
Environment. 25(8). pp.577-592.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management. 29(3). pp.334-354.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.