Download - Ryanair Case S
1. Introduction
• Industry: Aviation, Budget Airline• 1st budget Airline in Europe inspired by the U.S Budget
Airline, Southwest Airlines• Leadership: Michael O’Leary (CEO)• Company Vision: “To firmly establish itself as Europe's
low fare, schedule passenger airline through continued improvements and expanded offerings of its low fare service”
• Company Mission: “To become Europe's most profitable low cost airline by rolling-out proven low fare, no-frills service in all markets in which we operate to the benefit of passengers, people and stake-holders”
2. External Environment AnalysisPESTEL
Explanation Supporting Case Evidence O T
POLITICAL
Increase flow of migration which leads to increase
passengersEuropean Union expansion
Tighten security Security systems regularly monitored & maintained
ECONOMIC
Increased operation cost affection growth &
profitabilityRise in fuel prices
Reduction in distribution costs from
customers adapting to online check-ins
Depreciation of US dollars
2. External Environment AnalysisPESTEL
Explanation Supporting Case Evidence O T
SOCIAL
More people travel from region –to-region for work,
leisureEuropean Union expansion
Increased operating market, segmentation and
productivityEuropean Union expansion
People can fly frequently Low fares strategy
TECHNOLOGICAL
Enhancing revenue through ancillary services
Availability of satellite Television & Internet services on flights
Change market focusfrom third-party agents to
on-line bookingsTechnology expansion
2. External Environment AnalysisPESTEL
Explanation Supporting Case Evidence O T
ENVIRONMENTALNoise level controls, globalwarming, green house gas
effectsSocial responsibility policies &environmental protection laws
LEGAL
New rules to cover overbooking that result in
boarding denials to passengers by
airlines
European Union regulation
Company's image and reputation
EU decision at the Central London Country Court, a disabled man won a
landmark case
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2. External Environment AnalysisConclusion on PESTEL
• The most significant PESTEL factor would be
Technology.
• Whilst fast changing technology seems like a threat, it
would be an opportunity for companies who have the
agility to innovate fast
• Overall, the PESTEL is favourable due to the
opportunities in new technology and positive economic
climate
3. SWOT
Strengths - Low cost operation- New and maintained aircrafts (low
turnaround time)- Good financial health
Opportunities- Low airfares enable customers to switch to
budget carriers during recession period- Online services increase sales while
reducing unit cost and provide convenience to passengers
- Selling ancillary products during the flight that has high margins
Weaknesses- Poor customer service- Negative reputation and controversial
advertising and publicity- Too dependent on internet website
Threats- Increase of government tax and airport
charges- Increase in fuel charges- Global recession