The external analysis is utilized to understand how all the six factors, namely, political, economic, technological, legal and environmental affect ryanairs growth. Political factors play a significant role in determining the factors that can impact ryanair holdings plcs long term profitability in a certain country or market. Last weeks 3q earnings report from ryanair saw a 21% increase in net profit, with passenger numbers up 3% and average fares up 8%, partly offset by a 4% increase in exfuel costs per passenger. This is the detailed pestel pest pestle analysis of ryanair which is renowned irish airline. Ryanair case study and strategic analysis publish your. Ryanair is a flexible company thanks its nonunion work force. Ryanair swot analysis michael olearys maniacal focus. Ryanair is an irish airline competing in european low cost short haul airline industry. 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. Presented by heliette aponte, hannah erickson, nadine morais, sebastian sorbac, nabilah tarin. The role of ryanairs swot analysis is to help identify and. These factors could be positive for ryanair however, its depends company strategies how they respond to these factors. It thus benefits from scale over and above its rivals. 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.
Analysis of the business environment in order to analyze the airline industry, we need to conduct the pestel analysis. It has been operation in airline industry, therefore facing political, economical, technological, environmental and legal factors. 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. The company raised its net profit target for the year.
Ryanair flies over 1500 different routes and carried more than 79 million passengers in 2012. Discuss about the strategic management for ryanair. Ryanairs agreement to buy 100 boeing 737max aircraft, plus a further 100 options, for delivery between 2019 and 2024 allows it to accelerate its traffic growth modestly. Pdf does cost leadership strategy still work for ryanair. Ryanair swot analysis michael olearys maniacal focus on being the lowest cost producer.
Ryanair pestel analysis business teacher disclaimer. Pestel consists of political, economic, social, technological, environmental and legal factors, see. Pest analysis is concerned with the environmental influences on a business. Analysis of ryan air in light of strategic management analysis. Pestle analysis of ryan air management essay introduction. This aircrafts homogeneity leads to lower cuts maintenance costs. In tourism, one might use pestel analysis that helps assessing the global behavior of tourism demand. The s in all these analyses indicates social or sociocultural factors. From the above swot, pest and financial analysis on ryanair, the following alternative solutions are obtained to overcome.
Ryanair already had a huge clientele base although it seems 2016 it grew even bigger. Pestle analysis of ryanair political this aspect represented a. Due to severe security measures, they had to cancel 279 flights and refunded 2. The external analysis is utilized to understand how all the six factors, namely, political, economic, technological, legal and environmental affect ryanair s growth. Ryanair strategic analysis and recommendations for the future ryanair is the first budget airline in europe. The second part is using value chain to analysis the airline named ryanair.
It has achieved this through developing and marketing itself as. Global macro environment pest politicallegal eu introduced a legislation in 2004 for the compensation of passengers who have a valid flight ticket but are denied boarding on a specific flight. Ryanair boasts having the best customer service in the industry. This pestel analysis was produced by one of our expert. Analysis of ryanair and its business environment 1871.
Ryanair advertise its seasonal fares and other company related commercial advertisements on its fleet with zero advertisement costs. Political factors play a significant role in determining the factors that can impact easyjet plcs long term profitability in a certain country or market. Pdf on jun 19, 2018, raouf sakhizada and others published does cost. 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. Political and legal regulations for the air travel industry are getting even more stringent. Start writing about ryanair tows matrix with this example essay. A brief history of ryanair is set out to provide a background of submissions. Understanding ryanairs external environment and industry commerce essay. Extended versions include pestle, steep and steeple analysis. Assignment on strategic management of ryanair free solution. Pestel analysis is used to analyze international companies as well as industries that are engaged in exporting and depend on international markets. Financial statements show the financial performance of the companies and these statements are used by different users in order to.
Ryanair operates out of two major airports, dublin and london stansted. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. 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. Ryanairs scheduled passengers grew from a already huge 90. Ryanair is an airline registered in ireland ryanair, 2017, however, as the. 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. Ryanair was set up in the year 1985 by ryan family with a workforce of just 25 people and. Ryanair is europes leading low cost airline it currently operates over 1600 flights per day to 180 destinations in 29 countries. I am an msc logistics and supply chain management graduate with distinction from a uk university.
Based on the case study of ryanair by eleanor ohiggins, a role of a management consultant is assumed to conduct a strategic analysis on the company. Financial analysis for ryanair and easyjet propapers. This study will explore ryanairs pestle analysis in terms of politics, economical, social, technological, legal, and environmental perspective. Under davids leadership over the last 24 years ryanair has grown to operate a fleet of over 450 aircraft, we carry 3m passengers each week, and we employ over 16,800 highly skilled aviation professionals. Pestel analysis has been undertaken to evaluate the external environment of. Ryanair employs approximately 9,500 people, which is an increase of 5% from 20. I have a background in the field of mathematics, finance and auditing and have a wealth of experience, having previously working with the banking. First part of the report is analysing the external environment of airline industry through the model of pestel. Ryanair has the average youngest aircraft group in the europe. An analysis of ryanairs business environment introduction. To do so, they employ environmental analysis such as pest analysis. The management should focus on improving the returns from the investment ratio.
The european union authorities demand that airlines operate in an open, transparent manner. Pestle analysis of ryan air management essay customwritings. After four years of growing passenger numbers in the region of 3% to 5%. This swot analysis was produced by one of our expert business writers, as a learning aid to help you with your studies. Through collective bargaining agreements with groups of employees, which include pilots and cabin crew, ryanair negotiates working. Ryanair s 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. This flexibility can be noticed whenever changes and innovations occur in work practices. Understanding ryanairs external environment and industry. 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. 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. In 1986, inspired from the story of david and goliath the company go after the big guys. Any opinions, findings, conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of businessteacher.
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