This website uses cookies to ensure you have the best experience. Learn more

Ryanair Swot Analysis

1243 words - 5 pages

IntroductionThe Ryan family with a share capital of just £1, and a staff of 25 set up their own airline, Ryanair, in 1985. The airlines first route was then launched in July of that year, operating daily from Waterford in the southeast of Ireland to London Gatwick on a 15-seater Bandeirante aircraft. From those humble beginnings Ryanair has grown into one of Europe's leading Budget airlines currently employing a team of 2,700 people to fly approximately 35million passengers per year on 301 low fare routes across 21 European countries.By analysing the competitive forces at work in the Airline industry and analysing Ryanairs strengths, weaknesses, opportunities and threats this report seeks to highlight the current strategy employed by Ryanair and its future sustainability.Five Forces Analysis Analysis of the Low - Cost Airline IndustryBargaining Power of Suppliers-Boeing are RA's main suppliers-Only 2 possible suppliers of planes - Boeing and Airbus-Switching costs from one supplier to the other is high because all mechanics and pilots would have to be retrained.-Price of aviation fuel is directly related to the cost of oil (Ryanair controls these through hedging).-Regional Airports have little bargaining power as they are heavily dependant on one airline-Bigger airports, where Ryanair's competitors operate, have greater bargaining power.-Ryanair's policy is to try and avoid these airports.Bargaining Power of Customers-Customers are price sensitive-Switching to another airline is relatively simple and is not related to high costs(Internet-all airlines are online)-Customers know about the cost of supplying the service-No loyaltyNew EntrantsSome barriers to entry:-High capital investment,-Restricted slot availability makes it more difficult to find suitable airports.-Immediate price war if encroaching on existing LCC route.-Need for low cost base-Flight AuthorisationsThreat of Substitutes-No brand loyalty of customers-No 'close customer relationship'-No switching costs for the customer-Other modes of transport, e.g. Eurostar, TGV, Eurolines, Ferries, Cars etc.Competitive Rivalry-The LCC market is highly competitive-Most cost advantages can be copied immediately-Low levels of existing rivalry as the two major low-cost airlines have avoided direct headto head competition by choosing different routes to serve-However if any company does decide to compete on the same basis as Ryanair there will be heavy pressure on prices, margins, and hence on profitability-Not much differentiation between services. Price is the main differentiating factorSWOT AnalysisStrengthsRyanair's strengths are centred to a large extent on their ability to create cost advantages. For example the company uses its own engineers to carry out its routine checks and repairs on its aircrafts meaning some maintenance costs are included in its staff costs.Another cost advantage is derived from their 25minute turnaround time, which enables them to run two more flights per day than...

Find Another Essay On Ryanair Swot Analysis

This is a report about analysis of Ryanair. Including the marco and mircoenviroments anlysis and suggestions in 2008

4135 words - 17 pages characteristics and strategy and SWOT analysis make a clear picture about the Ryanair's situations.The sustainable competitive advantage in Ryanair is differentiations and low costs. As Ryanair keep on doing this way, they will have a brilliant future. The key factor for success is customers, competition and corporate. But actually it is a basic view. So, how can we do in 2008 is a key question for the Ryanair. I make some points relevant to the basic

An Evaluation of Ryan Air Essay

4283 words - 17 pages Analysis of Ryanair's EnvironmentStrengths•Brand name: Ryanair through its 14 years in the LCC market has developed a very well recognised brand name.•Benefits from low airport charges: These aid the low cost base Ryanair benefits from.•Has first mover advantage on regional airports: Acts as a barrier to entry•Internet site (94% bookings) www.ryanair.com: Lowers the cost of distribution, as over the phone bookings are more costly

RyanAir Business Model/ Effect of Recession / Future trends / Recommendations

7123 words - 28 pages to name a few. Due to the cuts in costs, but the amount of revenue increasing, Ryanair has been able to obtain a steady growth in profit since its induction in 1985.12. Recommendations to CEOA SWOT analysis of Ryanair (Datamonitor 2008, p.16) lists employee relations as a weakness. This indicates that weak employee relations may be linked to the poor customer service. Excellent customer contact with frontline employees is vital to the customer

Strategic Analysis of Ryanair

3942 words - 16 pages 1 INTRODUCTION The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in

British Airways VS Ryanair

3210 words - 13 pages Both British Airways (BA) and Ryanair (RA) are successful airlines at the top of their respective markets. BA is a more traditional, long haul full service carrier, while RA is part of the new bread of short haul, low cost, low frills carriers. The aim of this report is to give an overview of the industry, and the two companies, looking briefly at their history and future strategy and then to perform a financial analysis on both companies from

Case Study - EasyJet

4803 words - 19 pages -service carries sector mainly because of the need to reduce operational costs and therefore product prices.INTERNAL ENVIRONMENT ANALYSIS8. SWOT ANALYSIS OF EASYJET AIRLINESStrengthsMarketing orientation of EasyJet can be viewed as a major strength since the organization which concentrates its services and its marketing strategies in order to satisfy the customer needs, rather than just to sell the firm's product, is customer conscious

Marketing placement

1636 words - 7 pages 1.3 SWOT analysis This SWOT analysis is used to see the internal and external environment of China Air Service so that can help CAS to make more feasible and useful marketing strategies in order to survive in the intensively competitive travel market. The strength part and the weakness part are focused on the internal environment of CAS while the opportunity and threat are about external problems. 1.3.1 Strength  Many offices in the

Compare and Contrast SWOT and Porters 5 - University - Assignment

2843 words - 12 pages Student  number:  201504446   Module  name:  Strategic  Management   Module  number:  26341   Assessment  number:  1   Submission  date:  16/11/2017   Word  count:  2595   Discuss how Porter’s 5 Force model might contribute to a SWOT analysis Over the past century the global market place changed dramatically by expanding across continents establishing a mature global marketplace. Through a global perspective

Sky High Strategies - From: Corporate Strategy, Richard Lynch Page 23

1008 words - 4 pages those resources set them apart from the competitor. The corporation need to do an in house study which focuses on what that particular strategic advantage is and then leverage that advantage. It is also necessary to profile the competition and determine its objectives, resources, market strength and current strategy. Also the links with other companies need to be examined.This is a SWOT analysis of sorts and once completed the company needs to

International Marketing - Virgin Blue (A piece of Empire)

3417 words - 14 pages not only can offers a fun and friendly flying alternative to the customer, but also maximize the benefit of the shareholder that benefit in the low cost operating model.Marketing objectives: to gain a 40% market share in the domestic aviation market, increase brand awareness of the targeted business segment to 65% and increase market share in the business market segment to 50%.SWOT Analysis of Virgin BlueThe idea of a SWOT analysis is to analyse

Strategies to Ensure Sustainability in Current Economy Climate for Budget Airlines

5040 words - 20 pages tool is off-course the SWOT Analysis.· Strengths -1. Cost Leadership - our lowest fares are leading to greater seat occupancy2. Brand - our strong branding activities has shaped AirAsia image as world renowned LCC &ensuring high brand recall. For example of English Premier League sponsorship, WilliamFormula 1 Team sponsorship & the most recently3 times NFL Super Bowl Champion,Oakland Raiders (Leong, 2009).3. Single model aircraft

Similar Essays

Swot Analysis Of Ryanair

2408 words - 10 pages Contents1. Background22. Theoretical framework33. SWOT analysis of Ryanair44. Challenges and recommendations for the future75. References81. BackgroundThe subject of this report is Ryanair - the first Low Cost Carrier in Europe - which was founded in 1985 (Ryanair.com History 2008). The firm began operations with a staff of 25 and a single 15-seat airplane flying between Waterford and London. In 1986 Ryanair received permission to begin flying

Swot Analysis Of Ryanair Holdings Plc

1200 words - 5 pages This report is based on Ryanair Holdings PLC which was established in 1985. “Ryanair obtains permission from the regulatory authorities to challenge the British Airways and Aer Lingus' high fare duopoly on the Dublin-London route. Services are launched with two (46-seater) turbo prop BAE748 aircraft” (Ryanair, ND). Ryanair Holdings PLC is an Ireland based airline which is the largest low fare airline with 32 bases & over 800 low fare routes

Ryanair Irish Low Cost Airline: Current Market Position

1521 words - 7 pages into the terminal. However, if your bag is broken don’t expect high levels of customer service. Physical evidence:Planes are the most expensive asset that an airline can make. Ryanair is used to purchase used aircraft of a single type in order to controlaircraft acquisition costs. Swot analysis A 'SWOT analysis' is a useful way of summarizing the results of the environmental audit and presenting the current status of a business. SWOT simply stands

Analyze The European Airline Industry, With Implications For The Budget Sector, And Especially Ryanair

9466 words - 38 pages of passengers from 10 million to 40 million and has ordered 150 new Boeing 737-800 to be delivered by 2010.(www.ryanair.com) (Johnson and Scholes, 2002)52. Evaluate Ryanair's strengths and weaknesses.It is crucial to identify the environment in which Ryanair operates. The internal environment is summarised through Ryanair's strengths and weaknesses. Furthermore, it is part of the SWOT analysis. Lynch (2000) states it is important to relate