Previously we looked into the SWOT Analysis of Qantas, leading Australian airlines. In this case study, we will look into the SWOT Analysis of Ryanair.
Ryanair is a designated activity company in Ireland. It is a low-cost carrier That emphasizes reducing operating costs. Its headquarters are in Dublin swords And its operational bases are at London and Dublin airport.
Ryanair’s marketing actions help off in terms of market share. Marketing evolves over time in response to changing societal preferences. Attend our Free MasterClass on Digital Marketing, taught by IIDE’s Founder and CEO, Karan Shah, if you want to stay current with today’s effective marketing.
Let’s start with Ryanair’s past, founding, finances, services, and market competitors in this SWOT Analysis of Ryanair.
In 2016 Ryanair was one of the largest European budget airlines scheduled by passengers flown Record of carrying more International passengers than any other Airlines service. Ryanair group operates more than 400 Boeing 737-800 aircraft, with a single 737-700 charter aircraft, as a backup and for pilot training
It was founded in 1984 as “Darren enterprises” by Liam Lonergan and Cristopher Ryan. After a short period of time as “Ryanair ”. It took its inaugural flight and an aircraft in 1985 between Waterford and Gatwick airport. It was in 1986 when a second route was added by the company, flying from Dublin to Luton.
|Founder||Christopher Ryan, Liam Lonergan|
|No. of Employees||17,500|
|Market Cap||€22.94 Billion (2021)|
|Annual Revenue||€1.636 billion (2021)|
|Net Profit||€-1.145 billion (2021)|
Products of Ryanair
Following are products of Ryanair –
- Commercial flights
- Charter aircraft
- Pilot training
Competitors of Ryanair
Following are Ryanair’s top competitors –
- Lufthansa group
- Easy jet
- Pegasus airlines
Now that we have covered the demographics of Ryanair, let’s move on to the SWOT Analysis of Ryanair.
SWOT Analysis of Ryanair
1. Strengths of Ryanair
- Largest Low-cost Airline in Europe – Ryanair runs a fleet of over 450 aircraft, making it Europe’s largest low-cost airline. It is working to rebuild Europe’s aviation and tourist industries by restoring connection and expanding its passenger network to 225 million by 2026.
- Aircraft of the Modern Era – Ryanair exclusively operates Boeing 737-800 aircraft. This aerodynamic fleet allows them to keep expenses down while maintaining high safety requirements. Furthermore, it has placed a $9 billion order for 75 Boeing 737 MAX jets to assure public safety and to address the issues posed by the coronavirus.
- Low Airport Prices – Ryanair is one of the airlines pressuring airports to reduce fees as they determine where to fly when passengers start to return in large numbers. The airport’s primary source of revenue is from landing fees for the use of its runways, as well as from the many services they provide, such as shop space, catering, and vehicle parking.
2. Weaknesses of Ryanair
- Bad Reputation – A survey of over 6500 travellers was done in December 2020. Ryanair was named the “World’s Worst Short-Haul Airline” at the end of the poll. Passengers expressed dissatisfaction with a variety of issues, including additional surcharges, uncomfortable seats, a lack of in-flight entertainment selections, and bad customer service.
- Strikes – Eighty per cent of union members were dissatisfied because of the inadequate compensation structure. As a result, they staged a 48-hour strike, which Ryanair was unable to call off.
- Unloyal Customers – Customers are enraged with Ryanair’s refund policy. Customers are also dissatisfied with Ryanair since they only issue time-limited coupons. Instead of cash, vouchers are given.
3. Opportunities for Ryanair
- Assistance from the Government – The Bank of England’s covid care financing facility is proving to be beneficial to a number of businesses. A total of 53 businesses have expressed interest in receiving. These advantages exist, and one of them is Ryanair. Ryanair has borrowed 800 million euros via this arrangement.
- Talent Availability – Coronavirus robbed many individuals of their livelihood. Ryanair has the highest chance of hiring worthy candidates with exceptional abilities. Thousands of talented workers, including pilots, ground employees, cabin crew, and engineers, are eager to compete and re-enter the workforce.
- Shares Market – Morgan Stanley forecasts a surge in Southwest Airlines stock after the government eased travel restrictions and restored normal air activity.
4. Threats to Ryanair
- Regulations of Government – Ryanair has no influence on government regulations, as the government may quickly shut down all airline operations if the rules are breached.
- Restrictions due to COVID-19 – Many nations are unsure and inconsistent about how to handle the Divide crisis. Every organisation hesitates to take any action unless it has a defined and consistent recovery strategy.
Ryanair has maintained its position with its effective pricing in comparison to various other Europe based airlines. However, they have a negative reputation in the market due to a few mishaps. To recuperate from the same, they should take some help from the government and hire professionals to build up their brand image.
They may also establish a strong online presence and increase sales with the aid of a cost-effective marketing plan such as digital marketing. They may advertise and educate their consumers about current and forthcoming deals using digital marketing methods such as emailing, SEO, and content marketing. Preparing for the required Digital Marketing abilities and completing Certified Courses may lead to job chances with major tech organisations such as Accenture.
IIDE offers short-term certification that may get you up to speed in a range of digital skills and experience in areas like social media marketing, media planning, and SEO in as little as five days.
If you enjoyed this detailed company research on the SWOT Analysis of Ryanair, check out our IIDE Knowledge for more such case studies. Thank you for taking the time to read this SWOT Analysis on Ryanair. Do comment below with your opinions on the case study.