Ryanair Swot

Topics: Ancillary revenue, Ryanair, Low-cost carrier Pages: 2 (549 words) Published: December 16, 2012
Ryanair SWOT Analysis


• Ryanair launch as a low cost flight in Europe and thus positioning in a low fare policy. • Take the first mover advantages in these aspects: be the leading brand in providing the lowest fares prices to customers which in turn can increase the barriers to new entrants. Ryanair also has the strong bargaining power in airport deals. • With increasing new fleets, Ryanair is able to lower fares and higher plane income. • E-tailing or e-booking also eliminate the intermediaries and distribution costs very well. Resulting in Ryanairs' capability to lower cost. • Fuel hedging also keeps the impact of fuel price fluctuation to the minimum. • Ancillary revenue, the revenue from non-ticket sources such as baggage fees, also keeps Ryanair achieving 20% of revenues. Major earning also comes from ancillary schemes. Thus, this enhances Ryanair to consider in this scope more on next coming year.


• Ryanair didn't offer much of comfort and it lacked of flexibilities due to low cost policy that keeps company able to sell at the low fares. • Company also has the problem in quality management. It's because Ryanair focus on low fares for customers, thus it care leas on quality and services. Extra services are required customers to pay extra expenses. • Not well organized in employees’ departure. Ryanair lack of skilled employees that can communicate with customers properly. • Ryanair also dependent too much on low business costs which somehow lead to low quality and services. • Many of customers perceived Ryanair as noisy and not well-organized airlines. Some had been claimed that this airline is too straine. Ryanair will lose the customers who looking for the better services and qualities while they are willing to pay at higher rates.


• It's because Ryanair focused in most countries u der EU, the opportunity of the company is that Ryanair...
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