Ryanair Pestle Analysis 2018
Mariam Peyton is a professional Financial Analyst. She holds a Masters degree in Economics. She specialises in financial analysis and forecasting. Her expertise includes studying the financial performance of companies, markets and entire industries looking for trends, insights and information that can help you glean rich insights for use in academic and market research.
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The report introduces Ryanair and examines the current issues that it’s faced with. Ryanair has enjoyed tremendous success over the years, becoming Europe's biggest airline. However, the company has of late been having issues with its workers, which has resulted in flight cancelations. This has come as a result of Ryanair trying to maintain at all cost, its culture of low costs without consideration of its employees. Being a low cost airline built on reliability; these continued cancellations are beginning to cost Ryanair its long built reputation and giving the advantage to competitors like EasyJet.
The company is further faced with some macro issues such as uncertainty of Brexit, UK high taxes for air travel and the UK weak economy.
Key recommendations for future success include; changing its organizational culture and differentiating from competitors.
NO CITATION FOR THIS WORK WAS RECORDED
RyanAir Strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad macro-environment of Ryanair and the UK airline industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, etc to real company cases.
Analyse the external environment of Ryanair and the UK airline industry using Pestel.
- See also, Ryanair Porters Five Forces Analysis 2018
- See also, Easyjet Pestle Analysis 2018
1.0 INTRODUCTION
Ryanair is an irish budget airline founded in 1984. with its headquarters in swords Dublin Ireland. Ryanair is Europe’s largest airline and the world’s fifth airline with more than 2000 daily flights. the airline has become the first in European airlines to carry over 1 billion customers in 2017. Ryan air’s subsidiaries include; laud motion, viva air Colombia and Ryan Atlantic among others.
Due to its low cost business model, ryanair has had a steady growth with its revenue growing year on year. as of 2017, the company’s turnover was £6,647 million from £6,537millions in 2016 while adjusted profit rose by 6% from £1,242 million to £1,316 million (annual report 2017).
Figure 1: Annual revenue of Ryanair from 2013 to 2018 in million Euros (Statista 2018)
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