SWOT and PESTEL for Ryanair Airlines (Essay Sample)

1 Introduction:
In this review, we’ll discuss the analysis done for SWOT and PESTEL for Ryanair airlines. It will discuss the Critical comment on how the airline handles risks and vulnerabilities that impact their ability. In this report it will further discuss the numerous leadership models and Ryanair styles as well. Furthermore, it will discuss the roles, social and ethical responsibilities of Ryanair airlines. This study illustrates how the airline has done in recent years and what aspects management can rely on in the low-cost sector to maintain a highly competitive role.
2 Overview of the Company:
Ryanair has its headquarters in Ireland and is Europe's biggest airline with low cost. The study analyzes the market target and the world of Ryanair. Ryanair is single of the European businesses common low-cost airline. This editorial discusses the present strategy and monetary actions of Ryanair. Its current effective status around the airline industry and its competitors is recognized. Altered models were studied to obtain an understanding of the activities of Ryanair in the last few years. The strategy that makes Ryanair using their capabilities, vulnerabilities, potential, and risks the most successful and main player in its business has been evaluated (Ryanair, 2017).
Figure: 1 Ryanair Airline
Source: (Ryanair, 2017)
3 SWOT analysis of Ryanair
3.1 Strengths
It remained the first airline in Europe to operate under a low-cost industry model and has thus gained a great deal of industry experience. The carrier is also Europe's major airline, carrying extra travelers than any additional airline in the country. That means Ryanair is firmly present on most European markets, which is a kind of defense. The company is broad in size and scope economies that hold ticket costs down. The airline operates a robust online ticket reservation system that allows passengers to control their routes without dependence on a travel agent that avoids extra costs. Graph also shows 21% increase in net profit. The company's stable financial results allow expansion of emerging opportunities and through predatory prices to reduce competition. As Ryanair is a big aviation corporation, it also has good negotiating leverage against its suppliers that is a strategically significant addition to managing expenses (Griffiths, 2015).
Figure 2: Profit
Source: (Griffiths, 2015)
3.2 Weaknesses
Ryanair is one of the world's best-known low-cost airlines, and its cost-sensitive focus has generated numerous problems. In the first place, even though Ryanair grew every year since its formation, its credibility in most of its markets is far from being favorable. Ryanair is also linked to bad customer care, complex service arrangements that allow consumers to raise subsidiary revenue, and deceptive pricing practices. While the limitation of the low-cost air company business, in general, is more vulnerable to seasonal volatility and financial results, as freedom travelers mainly prefer low-cost commercial airlines, abrupt demand shifts for example, after the terrorist attacks in Europe could impact Ryanair's retributions through its marketplaces. In addition to complementary divisions in the flying sector for example freight and repairs. Ryanair would not be diversified, thereby raising the airline's disclosure to low-carriage requests (Tovey, 2017).
Figure 3: Weakness
Source: (Tovay, 2017)
3.3 Opportunities
Ryanair has several opportunities to support its development aside from the Brexit volatility. Ryanair's large aircraft orders in the next ten years allow it to improve its market share in Europe by reducing its environmental impact and fuel consumption by using cutting-edge aircraft, which are a crucial success in the low-cost aviation industry. Thus, when debating the viability of low-cost long-haul flights, analysts say that there could be a rise in the demand for long-haul transatlantic flights today; conventional, higher-cost companies dominate the market than airlines, according to the low-cost model, thereby offering Ryanair untapped growth opportunities. Ryanair has built a company-wide initiative to enhance its customer experience and the perception that offers competitor companies in the highly competitive low-cost European airlines industry compatible with the desire for better customer service of the travelers of generation (Tovey, 2017).
Figure 4: SWOT Analysis
Source: (Tovey, 2017)
3.4 Threats
Contrary to the aggressive Ryanair Plan for Growth, some external factors fuel prices and currency transactions, particularly the pound euro. Any externalized event impacting air travel demand, such as terrorist attacks or economic contraction, is not being managed or accurately expected. Ryanair faces some threats in addition to its strong progress. New airport laws and rules of Ryanair is also a major threat for the airline. The cost of service could rise concerning climate control charges. In most countries, there have been higher landing costs. These unions will pressure the management of workers making unions. New airlines in the EU for low prices are also a threat for the airline. Sales of their shares to the Ryan family are also a threat for Ryanair (Griffiths, 2015).
4 PESTEL Analysis
4.1 Political
While the precise specifics of certain potential legislation covering aviation between the UK and other European countries remain uncertain, this policy result could limit EU airlines' market right to use to the UK if negotiations do not guarantee restrictive flight between the UK and the EU and vice versa, UK airlines would also drop their free entree to the EU. However, as it has large UK bases, Ryanair is registered in Ireland; unfavorable outcomes from Brexit could impact not only Ryanair’s operations but also the processes of other low-cost commercial airlines in the UK (Kilpatrik, 2017).
4.2 Economic
Now the case of a UK slowdown afterward the EU's completion, the viability of low-cost airlines on the UK marketplace will be condensed as the economic success and the need for leisure travel are strongly intertwined. However, economic problems in the UK will not significantly affect the financial outcome of the EU, so long as United Kingdom airlines will reposition the main office in the EU to take advantage of probable growth possibilities, low-cost firms can cope with Brexit's economic uncertainty (Boffey, 2017).
Figure 5: PESTEL Analysis
Source: (Boffey, 2017)
4.3 Socio-Cultural
Cheap airlines are expanding because of the growth in available revenue in the central lesson and the routine variations that distinguish Age group Y tourists willing to offer numerous voyages each day. In comparison to preceding Y-fliers customers, thousands of years require good quality customer attention without paying premiums and usually trust airlines with sophisticated technological strategies to maintain route routes. (BCG, 2013).
4.4 Technological
As far as the community variations in the flying sector are concerned, there is a rising indication that lone airlines that contain mix Digital Channels into delivery and advertising policies will endure. However, technology is imperative for generation Y tourists in previous generations for example generation X. Generation Y travelers need to stay repeatedly connected to their social surroundings, indicating that corporations must adopt a new numerical communication strategy to reach their target audience. Besides, increasing technology reliance allows airlines to empathize with client performance, studying client statistics easily communal on numerical platforms (Accenture, 2017).
4.5 Environmental
Since the heat waves are becoming a frequent event that increases above the maximum ground aircraft operating temperature, airlines might consider another weather alteration edition operating approach. However, Ryanair uses a modern fuel-efficient aircraft fleet; the cost-effectiveness of small airlines is rising in terms of carbon emissions (PWC, 2016).
4.6 Legal
The vote in Brexit also constitutes a regulatory danger to the European aviation industry. Besides political and economic instability in the United Kingdom, British flight rules in the EU are not understood. The tough situation for Brexit would mean that air rush-hour traffic conditions among the UK and EU countries would be limited. Ryanair's latest statement reveals that all flights between the UK and the Union will cease (Carroll and Topham, 2017).
5 Different types of leadership style:
5.1 Autocratic leadership style
The authoritarian leadership model is where executives are responsible for all corporate activities, while workers must act according to organization policies and guidelines. Autocratic leadership is marked by swift management business decisions, as personnel are not affected. However, it is criticized that large employers cannot engage in decision-making and thus de-motivate employees and reduce their productivity (FT.com, 2017).
5.2 Democratic leadership style
The form of democracy leads in a fair playing field with all workers' participation in decision-making. In the Democratic leadership type, correspondence is more. Fewer flat organizations primarily practice this form of leadership style, and thus everybody in the organization is considered the same. Workers are more dedicated to the business as it gives more responsible decision-making responsibilities to the company and acknowledges the feedback made by its employees (Carroll and Topham, 2017).
5.3 Laissez-Faire...