Ryanair Swot

Topics: SWOT analysis, Strategic management, European Union Pages: 2 (455 words) Published: March 10, 2011
Ryanair is the World's favorite airline with 41 bases and 1100+ low fare routes across 26 countries, connecting 153 destinations. Ryanair operates a fleet of 232 new Boeing 737-800 aircraft with firm orders for a further 82 new aircraft (before taking account of planned disposals), which will be delivered over the next 2.5 years. Ryanair currently has a team of more than 7,000 people and expects to carry approximately 73 million passengers in fiscal year 2010/11. (http://www.ryanair.com/en/about)

SWOT Analysis:
* Strong brand name
* Has first mover advantage on regional airports (e.g. Charleroi): acts as a barrier to entry * High seat density
* High aircraft utilisation (Ryanair flies its planes for longer, thus generating more revenue from its assets) * High service performance (high rate of flight completion, low baggage loss, these give a good image of the company’s reliability) Weaknesses

* Poor service (people skills)
* Niche market (restricted expansion possibility)
* Prone to bad press (Ryanair is perceived as arrogant and the slightest incident gets a-lot of press coverage) * Distance of some regional airports from advertised destination (over time, customers may find this a big inconvenience) * Appalling employee relationships

* EU enlargement (vast amount of new destinations opened up) * Benefits from less exposure to geopolitical risks (as they only really operate in Europe) * Economic slowdown actually helps Ryanair (changes in corporate culture, ‘steals’ customers from traditional carriers as they seek lower fares) * Expansion into the US

* Competition from rival airlines
* Terrorism
* Limited growth on the South European market
* Dependence on oil markets (fuel costs depend on the oil market) * European court decision (this may make expansion more difficult and costs rise in the future) * Face increase in air traffic control...
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