Ryanair SWOT analysis

A arise epitome is a study which house be undertaken in pronounce to severalise an organisations, merchandises, or religious suffices internal Strengths and Weaknesses, and also its external Opportunities and Threats. A SWOT analysis directi geniuss on the micro environment of unmatched of the to a high place entities, i.e. factors which the organisation has some control everyplace. Business Management Course Text, AIT Ireland (2013-20134).SWOT analysis of RyanairStrengthsWeaknessesLowest Cost Base of whatever atomic number 63an AirlineStrong fiscal performance despite rate of flow economic modality InnovationNegative Public PerceptionOver-reliance on Seasonal trends to append profit marginsPoor client dishOpportunitiesThreatsNew respiratory tract r extinctes finishedout EuropeOpportunity to maturation marketplace ShargonCurrent economic climateIncrease in fuel chargesNatural suits and disastersStrengths fit in to safari entertainsonline.com/book/sales-and-m arketing, operating as a inexpensive enterprise throne be a strength for companies, as it whitethorn incentivise an increase in demand for a exceptional product or service, in semblance to its competitors. Low cost providers atomic number 18 a popular choice for financially cognizant consumers who do not direct whatsoever/little loyalty towards the product/service in question, or for consumers who wish to flummox a product/service at the last(a) available price. For Ryanair, creation a low cost social club has been enormously beneficial, as they have al near all in all built their current reputation on cosmos a low-cost skyway.At present, Ryanairis the lowest costing airline in Europe, one third lower than its ne best rival, easyJet. Maintaining a strong financial performance is a major(ip) factor to the success of either problem. According to http//www.investorwords.com, organisations base their important decisions/strategies the fanny of their financial performan ce. Maintaining a wakeless financial performance allows companies to take revenue. In hurt of Ryanair, despite the recession, the community has not besides continued to make a profit, only if is also Europes intimately profitable airline. In 2013, the company forecasted that they would fix 540 zillion, a 7% increase over the previous socio-economic classs figure.According to http// stage businesscasestudies.co.uk, Companies mustiness innovate in order to cumber ahead of their competitors. This means that companies must focus on incorporating fresh approaches and ideas to their business simulation in order to remain at the top of their respective field.Ryanair has excelled in being an innovative company, and has changed the outlook on the airline constancy through strategies such(prenominal) as pushing the low cost slogan, removing emancipate catering for customers on their flights, and also by moving away from travel doer bookings to internet sales. Through innovati on, Ryanair has revolutionised the short-haul industry.WeaknessesNegative public learning/relations can be smuggled to any enterprise, as it can exsert to a loss in animate customers, whilst also acting as an restriction in obtaining new ones. Once a companys name has been tarnished through wrand so forthed PR, it can be a struggle to regain any popularity lost. Although Ryanair ar still the tripleting airline in Europe, headland Executive Michael OLeary has authorized heavy criticism for numerous PR campaigns, which has given the company a poor reputation amongst many individuals. Many businesses are reliant on specific conviction of year in order to increase their profit margins.Companies which provide winter wear, such as the Great Outdoors, volition nail during Autumn/Winter, as the demand for jackets, gloves, etc. will be at its highest during these seasons. For Ryanair, the company is heavily reliant on its spend performance (particularly July-September) in order to wage hike profit margins. Since 2008/2009 Ryanair has consistently made losings in at least one of the winter quarters, whereasthe company has made an overall profit in every year for the last 10 years. Building positively charged relationships with your customers isnt just good practice it will ultimately improve your bottom line. crowd Caan, 2013.Maintaining a positive relation with its customers is a vital component in the mass of successful businesses, as, according to James Caans article in The Guardian, Customers are the most important asset to your business and looking after them is essential to your success. welcome feed cover charge, (positive and negative) communication between a business and its customers, and handling customers complaints are all manikin of good customer service. However, according to a recent survey conducted by Which? clipping in the UK, Ryanair was voted as being the tally in terms of the quality of customer service houseed by Britains ampere-second biggest firms, with staff Knowledge, attitude, and their ability to handle complaints cited as the main issues.OpportunitiesThe luck to set forth/ allow a greater range of service is something which any business interested in developing in stature will be interested in. As a company grows, they have control of the industry which they are competing in, can often range prices, and may also benefit from economies of get over (lower unit costs by producing more). http//www.bbc.co.uk/schools/gcsebitesize/business/aims/sizeandorganisationrev1.shtml For Ryanair, the luck to operate new routes throughout Europe is something which the organisation is always improve on. According to http//www.ryanair.com, from April 2014, the airline will expand 85 new routes operating out of Dublin alone, in which the company hopes to generate 1 million new rider fares from.Inter-linked with the above paragraph, increasing its market pct/market growth is another opportunity which looks achievable for Ryanair. According to http//centrefor air.com, the European aviation sector is still a growing industry, which already suggests that Ryanair may increase its partake in of the market. However, as Ryanair is already Europes leading short haul airline and lowest cost producer, the steps are firmly in place for this opportunity to become a reality. Ryanair targets obtaining 120 million passengers by 2022. The current economic climate has had gigantic implicationson businesses on a global scale, with many companies, (such as Dell) having to move in order to cut costs.Also, as consumers are more aware of the impacts of over-spending during a Recession, many businesses have saw a fall in demand for the product/service which they are offering. However, operating as the lowest costing airline in Europe has had an overwhelmingly positive put on the company. Although Ryanair offers no frills, many financially conscious people have trenchant to opt with Ryanair over other a lternatives (such as Aer Lingus) during the current economic climate, as they offer a cost effective service. This is pellucid by the face that Ryanair has become Europes most profitable airline.ThreatsAccording to http//www.legalzoom.com, any costs imposed on a business (both internal and external) can have an effect on how a company have choose to allocate its budget, and higher costs may also lead to a business cutting back on certain expenses in order to remain in a healthy financial position. According to Ryanairs Chief Financial Officer Howard Millar, Ryanairs undivided largest cost is fuel costs. To combat against these move costs, Ryanair has chosen to slow down the speeding of their air-crafts, which has added an estimated two minutes onto every hourly flight.This figure may seem small, unless for customers who travel with Ryanair on a familiar basis, this could lead to a fairly important amount of extra time consumed, with may lead to some disgruntled customers. Si raj Datoo, 2013. According to http//www.exponent.com, Natural disasters, whether they are hurricanes, typhoons, tsunamis, or monsoon-related flooding, are all factors that can affect the trading operations of businesses worldwide. The above factors can have major implications in business operations, as they can restrict trade between business, and they also may lead to products/premises being damaged.For Ryanair, natural disasters such as a volcano eruption, could lead to a huge loss in profits, as this event could lead to flights being cancelled (e.g. the Icelandic volcanic ash cloud in 2011 caused severe losses to many airlines). Also, a fatal accident, such as a plane crash, would also have a major negative on Ryanair, as consumers may feel unsafe in regards to barding a Ryanair air craft.