Ryanair Case S

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    07-Dec-2015
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Ryanair Case Sample

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1. IntroductionIndustry: Aviation, Budget Airline1st budget Airline in Europe inspired by the U.S Budget Airline, Southwest AirlinesLeadership: Michael OLeary (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 serviceCompany 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 AnalysisPESTELExplanationSupporting Case EvidenceOTPOLITICALIncrease flow of migration which leads to increase passengersEuropean Union expansionTighten securitySecurity systems regularly monitored & maintainedECONOMICIncreased operation cost affection growth & profitabilityRise in fuel pricesReduction in distribution costs fromcustomers adapting to online check-ins Depreciation of US dollars

#2. External Environment AnalysisPESTELExplanationSupporting Case EvidenceOTSOCIALMore people travel from region to-region for work, leisureEuropean Union expansionIncreased operating market, segmentation and productivityEuropean Union expansion

People can fly frequentlyLow fares strategyTECHNOLOGICALEnhancing revenue through ancillary servicesAvailability of satellite Television & Internet services on flightsChange market focusfrom third-party agents to on-line bookingsTechnology expansion#2. External Environment AnalysisPESTELExplanationSupporting Case EvidenceOTENVIRONMENTALNoise level controls, globalwarming, green house gas effectsSocial responsibility policies &environmental protection lawsLEGALNew rules to cover overbooking that result in boarding denials to passengers byairlinesEuropean Union regulationCompany's image and reputationEU decision at the Central London Country Court, a disabled man won a landmark case

#2. External Environment AnalysisConclusion on PESTELThe 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 fastOverall, the PESTEL is favourable due to the opportunities in new technology and positive economic climate#3. SWOTStrengths Low cost operationNew and maintained aircrafts (low turnaround time)Good financial health OpportunitiesLow airfares enable customers to switch to budget carriers during recession periodOnline services increase sales while reducing unit cost and provide convenience to passengersSelling ancillary products during the flight that has high margins

WeaknessesPoor customer serviceNegative reputation and controversial advertising and publicityToo dependent on internet website ThreatsIncrease of government tax and airport chargesIncrease in fuel chargesGlobal recession#