Ryanair SWOT and PESTLE Analysis

SWOT / TOWS analysis of Ryanair is a framework to evaluate the factors that create an impact on the airline industry at large and wield its influence on Ryanair. The SWOT analysis gives insights into the internal and external factors, namely, strength, weakness, opportunity, and threats of Ryanair. The strategic analysis of Ryanair’s internal factors demonstrates strengths that are also its key success factors. Some of these are low cost, low fares, innovation in terms of leadership and strategies, increased routes and frequencies to destinations. These factors are creating a competitive advantage for Ryanair and keeping it ahead of its competitors and rivals in the ever evolving and militant aviation industry where airlines are battling out to grab the smallest of market shares.

Though Ryanair’s business model is simple and focused in providing low fares, on time service and passenger’s safety as a priority, it scores low in customer satisfaction being plagued with problems like poor customer service, hidden charges, ambiguous agreements and misleading advertisements about fares. Clearly, these are some of the major weakness for any low-cost airline in general. Despite all the ups and downs, Ryanair has seen throughout its journey it has some great opportunities that will help sustain its growth. For instance, acquisition and mergers with other airlines, code sharing and sector consolidation, significant hike in number of short distance travellers teamed with a swelling market share and market growth are some factors in the macro environment of Ryanair that act as achievable opportunities. External factors like hike in fuel price, currency movements, competition from local carriers and natural disasters are some major threats to Ryanair.

The SWOT analysis for Ryanair is presented below in a matrix followed by the detailed analysis report.:

SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Ryanair

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. The external analysis is utilized to understand how all the six factors, namely, political, economic, technological, legal and environmental affect Ryanair's growth trajectory, its business case, and market strategy.

The political system of countries and their inter-relationships have a great impact on the airline industry. It is mandatory that the airline industry abides by the political policies of countries it is operating in, but that was not the case with Ryanair in 2012. Even though it was the largest low-cost carrier in Europe, Ryanair was against the idea of including airline industry in the European Union emission trading system, creating a buzz of controversies. Ryanair believed that additional taxation policy was unfavorable to the company in terms of revenue. Increasing fuel rate is an important economic factor that influences the entire aviation industry. Rise in fuel prices significantly reduced the profit margins for Ryanair, however, the company managed to increase its revenue due to increase in passenger volume. The legal factors also wield their influence on the aviation industry as they face interference of government in their operations. Ryanair faces the same from the Ireland government who does not sup port the merger of Ryanair with Aer Lingus, believing that this merger is not in the best interest of the Irish passengers.Ryanair’s improvised website and app for ticket booking and advanced technologies that it has invested in, has helped in maximizing its revenues. Ryanair has created a social impact on its passengers. This is depicted by the fact that more and more travellers are choosing Ryanair to fly. It is a socially responsible brand that stands for the betterment of the environment. The low cost carrier has proved the same by purchasing modern planes that are equipped with latest technologies to reduce pollution and Ryanair cuts down on supplying unnecessary luxuries that would cause pollution and produce waste.

The PESTLE analysis for Ryanair is presented below in a table followed by the detailed analysis report.

SWOT & PESTLE (combined)
Complete Report
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Detailed Pestle Analysis of Ryanair

• The report gives a brief overview of, Ryanair’s history, founders, its corporate headquarters, owners & stakeholders and revenue jumps.
• Comprehensive company analysis to gain knowledge about company information, company profile, business model, business plans and marketing strategy.
• Utilizing strategic tools like SWOT and PESTLE, the analysis strives to evaluate the performance of Ryanair in both the micro and macro environment.
• The SWOT analysis report covers all the internal factors that describe the major strengths and weaknesses of the largest low-cost carrier of Europe, Ryanair
• The report lends intelligence on the external analysis, comprising of the achievable opportunities that would lead to international growth and expansion.
• Gain understanding of challenges and threats posed by major competitors, that would impede Ryanair’s growth.
• The analysis also talks about appreciation in the share price of Ryanair, opportunities for mergers and acquisitions, partnership and alliances.
• Gives insight into Ryanair’s strategy and business model that has helped it to become a successful pioneer brand in providing low fares for its passengers.
• Interpretation of Ryanair’s USP or unique selling proposition, mission statement and vision statement that has set a benchmark in the airline industry.
• Core competitive advantages enjoyed by Ryanair over its rivals and competitors from the aviation industry
• In-depth analysis of external factors like political, economic, social, technological, legal and environmental and highlighting their impact on the operation of Ryanair.
• An insightful view of the business model of Ryanair, along with further breakdown and examination of key business segments and business case study
• A peek into the Ryanair’s key performance indicators, success factors, value proposition and core competencies