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In
the strategic planning process, the cane of internal dn external environment is
very important for the organization. All those environmental factors that
determine internally the firm are consider as strengths and weaknesses and
those factors that affect externally are opportunities and threats. So SWOT
analysis provides detail help to making accurate match of resources and
capabilities of the organization with in competitive environment. in strategy
selection and formulation, it is instrumental.
|
Strength
of
the airline company “Ryan air” |
Weakness
of
the airline company “Ryan air” |
|
·
Strong brand position and brand
share ·
Low price enable the government
subsidies and airport discount ·
Effective operation strategy ·
Strong profitability ·
Effective management team, chairman
and CEO ·
First mover advantage |
·
Dependence on third pray service
provider ·
Weak employee relationship ·
Poor human resource management
policy ·
Secondary routes cause
inconvenience for customers ·
No customer loyalty |
|
Opportunities
of
the airline company “Ryan air” |
threats
of
the airline company “Ryan air” |
|
·
Cost reduction in advance ·
Establish market share ·
Revenue income ·
Strong public branding ·
Technology impact on system and
service |
·
Environmental charges ·
Increasing oil prices ·
Trade unions ·
Currency fluctuation ·
New competition ·
Possibility of being taken over |
SWOT/TWOS
analysis of the ryanair is a helping tool that helps in evaluation to develop
an impact on the airline industry at large scale and influence the environment
of ryanair. All these factors are developing an atmosphere of competitive
advantages and prepare the ryanair to handle with its competitors and rivals in
the militant aviation industry. the ryanair provide on time service, low rates
and safety of passengers but it also face poor customer relationship by
providing them wrong guidance. In low cost airline there must be some weaknesses.
but in the journey of ryanair, many opportunities obtain by airline that
provide great support to sustainable growth and development. The achievable
opportunities of ryanair are merger and acquisition with other airlines, code
sharing and sector consolidation, significant hike in number of short distance
travelers teamed and in macro environment the market growth and with them some major threats for the
ryanair are natural disaster, competition from local carriers, currency
movement and fuel prices.
Pestle
analysis: this analysis provides a framework that defines the impact of
external factors on the business of ryanair company on macro environment. This
external analysis shows that how these factors affect the growth rate of
ryanair and its market strategy and business case. Factors are political,
economic, technological, legal and environmental factors. Omn the airline
industry, the great impact going to appear with the political system of
countries and their inter relationships. For airline it is important to follow
the political policies of country where they run their business. Ryanair is the
low cost carrier but still it don’t want to merge with European union emission
trading system because it consider that tax is consider a burden in term of
revenue of the company. Profit margin also going down with the increase of fuel
prices. But company manages its revenue shortage by increasing the volume of
passengers. Aviation industry also influence by the legal factors because it
effects their operations and ryanair also face many problems in this regard.
The use of latest technologies like app and website for ticket booking and
advance help the organization to generate more revenue. Ryanair is responsible
at social level that try to maintain the environment and its lower cost carrier
provide opportunity to travel in just like modern planes with full of latest
technologies to minimize the pollution and cut down extra luxuries.
Porter
five force analysis
This
framework provides the structure of the industry with depth. It provides the
organization value and provides strong starting point for strategic analysis.
This model can determine in all the points that support the organization and
pinch points may discuss in details that effect the organization. In the
market, company has to face lot of competition and pressure to maintain its
profitable ratio. Here we are going to conduct five force analyses for the
ryanair to determine the industry attractiveness in the market.
|
Competitive
rivalry |
Substitutes
of high threats, copied cost advantages, availability of routes become
limited and differential low factor. |
|
Bargaining
power of buyer |
Large
volume not buying by customers, on service and price transparency provided,
price sensitive buyers and with other airline low switching costs. |
|
Bargaining
power of suppliers |
Oil
cost directly affected with the price of fuel aviation, only two
manufacturers are there airbus and Boeing. High switching costs |
|
Threat
of new entrants |
Required
flight authorization, required high capital investment, slots restricted and
intensive industry of fuel and labor. |
|
Threats
of substitutes |
Other
modes of transport is also available, customer with low brand loyalty and
customers with low switching costs. |
businessteacher.org.uk, 2019. Ryanair SWOT Analysis. [Online]
Available at: https://businessteacher.org.uk/swot/ryanair.php
phdessay.com,
2019. https://corporate.ryanair.com/about-us/history-of-ryanair/. [Online]
Available at: https://phdessay.com/the-environmental-case-analysis-of-ryanair-commerce-essay/
swotandpestle.com,
n.d. ryanair SWOT and PESTLE analysis. [Online]
Available at: https://www.swotandpestle.com/ryanair/
[Accessed march 2019].
ukessays.com,
n.d. Ryanair Case Analysis Report Management Essay. [Online]
Available at: https://www.ukessays.com/essays/management/ryanair-case-analysis-report-management-essay.php
[Accessed 5 12 2016].
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