Ryanair Swot Analysis

Case Notes-Ryanair

Overview

• First and largest budget airline in Europe, enjoying remarkable growth and success.
• Ran more than 1500 flights per day from 51 bases on 1500 routes across 28 European countries, connecting over 165 destinations.
• Founded in 1985 by the Ryan family to provide scheduled passenger services between Ireland and the UK.
• Initially a full-service carrier, Ryanair ventured into the budget airline industry adding new bases, routes and aircrafts.

The following are the case notes in assessing Ryanair’s strategic capabilities.

Internal analysis provides assessment on an organization’s internal resources, capabilities as well as core competencies. Thus, allowing organizations to turn their resources into core competencies that lead to both competitive and strategic benefits.

In simple terms, it is an assessment of what an organisation has.

1. Physical Resources

• Availability of 294 boeing aircrafts with improved emissions running 1,500 flights a day with 51 bases on 1500 routes across 28 European countries, connecting over 165 destinations.

1. Technological Resources

• Delivering as much services as possible through the internet and website to increase sales while reducing unit cost.

• Services include accommodation, travel insurance, car rentals, check- in services, in flight food and seating allocations.

1. Financial Resources

• Increase in net income from 2010 to 2012.
• Good standing of cash ratio at 2.14 indicating a good liquidity measure that enables Ryanair to meet its short term financial obligations.
• Low working capital to total asset ratio of 22.9%.

1. Organisational Resources

• Adopted a commonality policy, using only Boeing 737 planes with newer acquisitions producing 50% less emissions, 45% less fuel burn and 45% lower noise emissions.

• Staff training and aircraft maintenance cost are kept low due to the policy.

• Winglet modification allows for larger seating capacity which does not require additional crews.

• Increases possibility to increase revenue.

1. Human Resources

• Uses interviews, screening, and selection of most qualified candidates, filling of positions through transfer or promotion and coordinating temporary employment internally and externally.
• Certain criterias are required for potential candidates to be considered for various positions.

1. Reputation

• Reputed for charging passengers on services that is deemed to be unavoidable such as check ins, extra charges for booking fees, overweight and low baggage weight limits.
• Ryanair’s public perception is only focussing on bottom lines and not customer service.

1. Management and Leadership

• CEO of Ryanair Martin O’Leary has been actively contributing to the organisation in various uncanny and in many people’s eyes controversial methods.
• Low cost strategy in Ryanair.

1. Organisational Culture

• Autocratic approach in its staff and operations in focusing on cost cutting.

External analysis explains how an organization’s external environment can generate opportunities and threats that can harm its strategic directions. Then after, an organization takes necessary actions to produce core competencies and capabilities that maximise opportunities and eliminate threats. Here, we look at the PESTEL Framework and Porter’s 5 forces framework.

PESTEL Framework

The PESTEL framework categorises environmental factors into six key types: