Ryanair Swot Analysis 2021
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Ryanair is the Europe’s largest airline, the largest low cost carrier and also one of the world’s largest airlines globally in terms of passenger numbers carried. It currently operates in a very competitive and challenging environment, worsened by the COVID 19 impact on travel in general. Despite the loosening of travel restrictions and lockdowns after a successful rollout of vaccines, the industry is not likely to get back to its normal levels any time soon as new variants keep coming up and the fear of travel and infection impacts consumer decisions making. Moreso, consumer confidence remains subdued by growing unemployment, looming recessionary fears and the continued uncertainty surrounding COVID 19.
Further, it should be noted that the airline industry was already overcrowded pre-covid 19 with major players competing on price, a fact that has pushed profitability to their lowest levels. This is a situation that is likely to worsen in the near term as supply exceeds demand, in fact, smaller airlines are likely to continue collapsing while major players consolidate to gain market shares.
Using SWOT analysis, this report examines why even though covid-19 decimated travel and poor customer service remains a weakness for Ryanair, the lasting legacy of covid-19 on travel habits, in line with a continued shift to staycations will play a key role in shaping the domestic travel battlefield, benefiting Ryanair and other low cost airlines.
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Ryanair Swot Analysis Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the major strengths and weaknesses of Ryanair using the SWOT framework.
- Use the SWOT analysis model to understand the role dynamic capabilities can play as critical bases of strengths to help firms take advantage of opportunities by analysing how Ryanair has used key capabilities to take advantage of opportunities brought about by Covid-19 to continue dominating low cost travel.
- Contrast arising opportunities with some of the emerging threats to understand where the travel industry is heading, and whether Ryanair can seize and reconfigure elements of its strengths and capabilities for corporate success in a post covid-19 world.
- See also, Ryanair Pestel Analysis 2021
- See also, Ryanair Porters Five Forces 2021
1.0 INTRODUCTION
Ryanair is the Europe’s largest airline, the largest low cost carrier and also one of the world’s largest airlines globally in terms of passenger numbers carried (see figure 1 below). It currently operates in a very competitive and challenging environment, worsened by the COVID 19 impact on travel in general. Despite the loosening of travel restrictions and lockdowns after a successful rollout of vaccines, the industry is not likely to get back to its normal levels any time soon as new variants keep coming up and the fear of travel and infection impacts consumer decisions making. Moreso, consumer confidence remains subdued by growing unemployment, looming recessionary fears and the continued uncertainty surrounding COVID 19.
Figure 1: Leading airlines in Europe in 2020, based on number of passengers (in millions)
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Further, it should be noted that the airline industry was already overcrowded pre-covid 19 with major players competing on price, a fact that has pushed profitability to their lowest levels. This is a situation that is likely to worsen in the near term as supply exceeds demand, in fact, smaller airlines are likely to continue collapsing while major players consolidate to gain market shares.
Using SWOT analysis, this report examines why even though covid-19 decimated travel and poor customer service remains a weakness for Ryanair, the lasting legacy of covid-19 on travel habits, in line with a continued shift to staycations will play a key role in shaping the domestic travel battlefield, benefiting Ryanair and other low cost airlines.
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