Ryanair Swot Analysis for Crafting and Executing Strategy

Topics: Southwest Airlines, Strategic management, Airline Pages: 2 (361 words) Published: July 10, 2011
* In its 26 of being in the airline travel industry, RyanAir were the first to launch low cost flights in Europe and has established itself as a reliable airline providing the lowest fares in the market. * The usage of a single model of aircraft i.e. Boeing 737 planes reduces training, maintenance and supervisory costs. Their new aircraft models burn less fuel and have less noise emissions which result in more safety, higher fuel efficiency and create more opportunities for savings. * RyanAir has first mover advantage on regional airports (e.g. Torp, Charleroi) and acts as a barrier to entry for newcomers in the market. * Due to a flat structured and simple form of the organisation, they have less overhead costs as compared to their competitors. Weaknesses

* RyanAir has constantly been under negative light because of bad customer reviews and media reports. TripAdvisor had rated RyanAir as the world’s least favourite airline in 2006. Bad publicity directly affects customer loyalty. * The distance of some regional airports from advertised destination is something customers may look at as an inconvenience as markets grow. * Bad customer relations and safety issues have been a constant problem for RyanAir as many reports of various incidents depicting RyanAir employees as being careless have come up. A British channel broadcasted a documentary which showed RyanAir employees sleeping on the job and ignoring warning alerts on the aisles. Opportunities

* Increase market share to popular business routes and leisure destinations by merging/acquiring companies which could help ease pressure on its costs and fares. * Vertical and horizontal integration could become necessary to further grow in maturing markets. * Plans for expanding into non European countries in the future. Threats

* They have direct heavy competition with other low cost carriers which is expected to grow with the emerging markets in the industry....
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