Ryanair the low fares airline strategic analysis 222624 strategic management dr maria. Pestle analysis of ryanair political this aspect represented a considerable advantage in that. From our analysis of the ansoff model above, we recognise that the strategic options available to ryanair include. Ryanairs regional airports tend to be seen as far distance from the city they are covering.
Ryanairs chief executive, michael olearys, once claimed that lowcost airlines are the new europe this seems to have been amply proved by the tremendous impact lcc have had on europe. Strengths ryanair is the biggest european airline company. Analysis of the business and financial performance of ryanair. Ryanair is a very lowcost ireland airline and it is operating to 180 destinations within the european union. Understanding ryanairs external environment and industry. Strategic analysis of ryanairsergio fernandez garcia. Ryanairs main aims are to be the market leader of lowcost airlines, to attract new potential customers from smaller and bigger airlines and to sustain its low cost policy and value. The external analysis is utilized to understand how all the six factors, namely, political, economic, technological, legal and environmental affect ryanair s growth. Financial analysis for ryanair and easyjet propapers.
The tows matrix is derived from the swot analysis model, which stands for the internal strengths and weaknesses of an organisation and the external opportunities and threats that the business is confronted with. Ryanair is a flexible company thanks its nonunion work force. Ryanair is an irish low cost airline headquartered in dublin founded in 1985. Ryaay1 was established in 1985, making the company europes first low cost airline. Hedging policy ryanair remains unhedged although pestel analysis concluded an instable environment ryanair added too much capacity in a short time frame overcapacity may lead to deteriorating load factor and danger of high fixed costs. Pdf does cost leadership strategy still work for ryanair. Political since ryanair has its base in both european union eu and ireland, it is regulated by authorities both in the ireland and the eu e. Download as docx, pdf, txt or read online from scribd. It thus benefits from scale over and above its rivals. Ryanair swot analysis a swot analysis is a study which can be undertaken in order to identify an organisations, products, or services internal strengths and weaknesses, and also its external opportunities and threats. Pest analysis, which many refer to as a deeper approach into the marketing environment consists of political, economic, social and technological features of a market. It is quick and easy to fly any where in europe with ryanair. At the end of february 2012 ryanair announced that it plans to cut 300 jobs in edinburgh due to the high airport charges there.
Market penetration ryanair can increase the number of air passengers using the airline in its current market. View ryanair pestel and swot analysis from hrm 456990 at institute of management science, peshawar. Ryanair strategic analysis and recommendations for the. Although its mainly used to assess business ventures, it can also be easily used to measure almost anything that is influenced by external and internal factors. A pestle analysis is used to scan various factors of interest for formulating strategic and marketing plans. As already described in the introduction, the european airline industry has grown so quickly over the past two decades and to understand the challenges and opportunities that ryanair has, it is necessary to analysis its external environment and its industry. Swot analyis of tesco business teacher swot, pestel and. Ryanairs aircraft is only composed of boeing airplanes. The organisation selected for the paper is ryanair, which is the primary lost cost airline of europe and provides customers low fare flights for all places. This is particularly true in the european union where ryanair primarily operates. Political issues are very relevant in the airline industry which has been and still is under political influence. The analysis of those factors of the macroenvironment is therefore often known as pestel analysis. Pestel analysis political some countries give preferential treatment to companies from their own country.
Pestle analysis of ryanair political this aspect represented a. This together provides a better understanding of the industry to be gained and as a result better strategic decision will be made. Jan 06, 2015 ryanair internal analysis resources and capabilities in 2006 ryanair was in ownership of a total of 103 boeing 737 aircraft, and also a set order to increase this number by 8 in the next six years. Mission ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost commitment and operating efficiencies. A swot analysis focuses on the micro environment of one of the above entities, i. Ryanair s aim is to keep costs minimum so with continuing rising costs of production, ryanair has to continue to reduce its staff numbers.
Ryanair analysis ryanair overview of the company ryanair started in year 1985 with only 57 staff members and with one 15 seater turboprop plane from the south of east of ireland to londongatwick which carried 5000 passengers on one route harrison, 2002. Ryanair was set up in the year 1985 by ryan family with a workforce of just 25 people and. Who are ryanairs customers 15 years into the future pestel ryanair political worldwide tourism if tourism continues to grow at the same rate it is now governmental regulation as a whole governmental security regulation breaking up of the eurozone if a. A pestle analysis for ryanairs business commerce essay. Low large barriers to entry exist for airline industry associated with the large fixed cost for operations and startup, economies of scale, access to distribution channels and many more. Animated pestle analysis presentation template for powerpoint.
Horizontal analysis allows the management to trace and track changes over a period of time. Ryanair case study and strategic analysis an analysis on the competitiveness and lowcost strategy of. Ryanair case study and strategic analysis an analysis on the competitiveness and lowcost strategy of europes leading lowcost carrier ryanair ba hons christoph muller research paper undergraduate business economics company formation, business plans publish your bachelors or masters thesis, dissertation, term paper or essay. If the passengers tax increases to a higher rate from the existing low rate, it will have a negative impact on the sales of ticket. Ryanair cut further jobs as a result of this tourist tax. Ryanair flies over 1500 different routes and carried more than 79 million passengers in 2012. Strategic analysis of ryanairsergio fernandez garcia free download as powerpoint presentation. Currently its fleet flies out from 127 destinations. This report has presented the financial analysis of two of the leading airlines of the world, ryanair and easyjet. A more prolonged form of this analysis is called pestle, which incorporates the aspect of legal and environmental factors affecting the marketplace.
Pestle analysis is a detailed view of the environment a business is. Currently, 11,458 employees work for ryanair at various locations across the countries it flies to. Ryanair case study and strategic analysis publish your. Ryanair the lowfares airlines case study by sid hegde ryanair the low fares. Discuss about the strategic management for ryanair. Pestel analysis of the uk this detailed pestel analysis of the uk aims to address some of the political, economic, social, technological, environmental, and legal issues affecting the uk today. Ryanair pestle analysis pestle is the acronym for political, environmental, social, technological, legal and environmental, and this tool, devoted to carry out analysis considering the external influences to an organisations activity, is of fundamental importance to properly develop a reliable strategy. On the other hand, vertical analysis allows the management to compare each element in the financial statement and their impact. This aircrafts homogeneity leads to lower cuts maintenance costs. It operates 181 aircrafts over 729 routes across europe and north africa from 31 bases. Ryanair boasts having the best customer service in the industry. The uk government increased the tax more than three times in the last 24 years both on the long distance and short distance journey.
This can be done by use of promotions, and possibly the idea of flying for free if the passenger flies for free. Ryanair has seen large success over the recent years due to its lowcost business model and has become the worlds largest airline in terms of international passenger numbers. This is the detailed pestelpestpestle analysis of ryanair which is renowned irish airline. Analysis of the business environment in order to analyze the airline industry, we need to conduct the pestel analysis. Ryanair s recent commentary showed that suspending all flights between the uk and the eu is a well probable outcome if eu and uk decision makers will not reach legal consensus on this matter soon based on ryanair s decision to gradually diversify from the uk, there is a prevailing pessimism in the industry, expecting the hard brexit. These factors could be positive for ryanair however, its depends company strategies how they respond to these factors. Ryanair the future of the leading low fares airline. Pestel analysis ryanair essays and research papers studymode. Pest analysis marketing plan pest analysis for easyjet for the next 5 years. A casebased analytical study on the strategic evaluation. Ryanair is a lowcost airline, headquartered in dublin, ireland. The animated pestle analysis presentation template for powerpoint. The animated pestle analysis presentation template for powerpoint gives very attractive, easy to edit slide layouts that. The external analysis is utilized to understand how all the six factors, namely, political, economic, technological, legal and environmental affect ryanairs growth.
It offers different products to its large number of customers worldwide. Ryanair replaced its old fleet with new more efficient and environmentally friendly aircraft and has the youngest fleet of any major airline. Porter five forces analysis of ryanairporter analysis. Ryanairs main aims are to be the market leader of lowcost airlines, to attract new potential customers from smaller and bigger airlines and. Ryanair strategic analysis and recommendations for the future. Pestel analysis is a useful tool to analyse the environmental audit peter f.
Free downloadable pestle analysis template brighthub. Vision to firmly establish itself as europes leading lowfares scheduled passenger airline through continued improvements and expanded offerings of its lowfares service. Ryanair has the opportunity of building the ultimate low fares company in from economic 211 at university of phoenix. Pestel analysis has been undertaken to evaluate the external environment of.
Ryanair and easyjet are the leading low cost players owning around 50% of the share in the european lcc market. Analysis of ryanair summary ryanair, one of the most famous low cost airlines, attracts attentions from people and researchers all over the world. Marketing plan for ryanair publish your masters thesis. To find out if petrohand should even be developed for our client, the best weapon is to look at each factor within this pestle analysis example and answer the. Pestel and swot analysis of ryanair management essay. Pestel or pestle analysis, also known as pest analysis, is a tool for business analysis of political, economic, social, and technological factors. From the case study page 703 it states that the french government attempted to protect air franceklm by forcing easyjet and ryanair to. There are a number of lowcost airlines operating on the routes similar to ryanair.
A casebased analytical study on the strategic evaluation of. One competitive advantage for their competitors is the fact that they serve more convenient locations. Pestel analysis the pestel framework provides a comprehensive list of influences on the possible success or failure of particular strategies. Pestle analysis is used to scan the competitive business environment which affects the business of the organisation. Based on the instance survey of ryanair by eleanor ohiggins, a function of a direction adviser is assumed to carry on a strategic analysis on the company. Following is a detailed porter five forces model analysis of ryanair competitive rivalry high. Introduction ryanair is an airline with the straight of low fareryanair operate over 1500 flights per day from 51 bases, across 28 countries. Executive summary the report explores the broader financial aspects for the lookers using the principal financial appraisal methods and relevant comparisons to caffyns plc and other comparators.
A recent liberalization act came under the form of the euus open skies agreement, signed in 2007and which entered into effect on march. Essay a swot and pestel analysis of easyjet essay company. A three year analysis on ryanair is a great opportunity for me to know about a major airline and also apply my knowledge acquired through my acca. Pestel consists of political, economic, social, technological, environmental and legal factors, see. Preferential treatment of home base airlines in some countries, at the same time they prevent thriving foreign companies and inflict them in more operational cost. At the end of february 2012 ryanair announced that it plans to cut 300 jobs in. Pestel analysis has been undertaken to evaluate the external environment of ryanair. In this section, we will share the third of the five pestle analysis examples. In the last three years these have seen a decrease in profits, and customer service. Action plan executive summary ryanair is a lowcost irish airline operating to 178 destinations within the european union. Ryanairs aim is to keep costs minimum so with continuing rising costs of production, ryanair has to continue to reduce its staff numbers.
Political and legal regulations for the air travel industry are getting even more stringent. Understanding ryanairs external environment and industry commerce essay. The growth feasibility analysis points out key areas in this market that deserve the most attention from. Ryanair pestle and swot analysis presented by ali hadi waqar ur rehman overview introduction pestle. The acronym tows is a variant of this and was developed by the american international business professor heinz weirich. All of our resources are completely freeofcharge and are available as a source of information to assist students and business professionals in learning the basics of business.
Pestel analysis environmental influences on ryanair political most of. Analysis of the external environment of ryanair southwest of european airlines case 1699 words 7 pages the objective of my report is to analyze the external environment in ryanairsouthwest of european airlines case, which is very important factor for the firms formulated effective strategy. Political, economic, social, technological, ecological and legal and a technique for understanding the various external influences on a business 4. Strategic analysis of ryan air linkedin slideshare. Ryanair internal analysis resources and capabilities in 2006 ryanair was in ownership of a total of 103 boeing 737 aircraft, and also a set order to increase this number by 8 in the next six years. As the financial crisis and the european debt crisis have an obvious negative influence on the global economy, the aircraft industry has experienced some decline for the last few years. In our pestle analysis diagram template, the results are represented in a tabular model in which all the significant factors are reflected and classified, and for each of them an estimated impact strength and the probability of change is given. Ryanair has the opportunity of building the ultimate low. Sep, 2017 in 2016, ryanair reported revenue of more than 6 billion euros. Ryanair case study and strategic analysis grin publish. The firm has over 1,500 routes, connecting 168 destinations. This essaycoursework on ryanair includes a swot, pestle. Swot analysis is used across industries to measure strengths, weaknesses, opportunities and threats of a business venture. This swot analysis assesses the tesco group, a global retailing powerhouse and portfolio of retail brands that offer food and nonfood items in countries all over the world in different formats, including a large online retail store.
This flexibility can be noticed whenever changes and innovations occur in work practices. It aims to analyse the strengths and the weaknesses of ryanair. When we look at what ryanair does very well in opposite to others companies in its industry we immediately notice that ryanair is one of the leading low cost carriers ever. It also aims to explore the opportunities and the threats facing the airline. The retailer has had to face numerous external forces and an increased competitive environment as well as. Ryanair analysis swot, pestle etc business essays essay. Scribd is the worlds largest social reading and publishing site. The pestle steepl pest analysis report is a framework used to understand the impact of external factors on the macro environment that influences the business of ryanair company. It is in this context of uncertainty that the pestle analysis appeared, which aims to i dentify and analyze the macroeconomic variable relevant to an organ ization in a specific environment. Ryanairs mission is to give the lowest fares at all times on all routes.
Ryanair pestel analyses are those external factors that could hinder their operation which would be analyzed. Pestel analysis is a very useful tool that helps business strategists to understand the impact of the macroenvironmental factors on their businesses. Ryanair pestel and swot analysis ryanair pestle and swot analysis presented by ali hadi waqar ur rehman overview introduction pestle analysis swot. Before we discuss the pestle analysis, first download the free pestle template found in our project management media gallery you can also view a screenshot above click to enlarge.
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