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Ryan Air Swot Analysis

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Submitted By lincolnmarinus
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Ryanair’s strategy is, Low cost, no frills airline. This strategy was boldly and rigorously executed leading to the success of the airline.
Ryanair’s success is attributed to outstanding operational effectiveness. The purpose of this strategy is to get more out of the inputs, such as fuel, airport charges and passenger compensation, by eliminating unnecessary processes or non-value adding activities.
Their strategy benefited with the economic downturn and financial depression, due to low air fares and people’s perception that it is the cheapest airline.

S.W.O.T Analysis
S:
• Ryanair’s CEO: Michael O’Leary
• Growing and making profits during an economic recession
• Europe’s largest carrier by passenger numbers and market capitalisation in 2009
• Achievements – winning international awards
• Profitable airline
• Cost per passenger low
• Low fares
• Good on-time record
• Few cancelations
• Few lost bags
• Using smaller lower cost airports enabling 25 minute turnaround times
• Labour force is productive and flexible
• Low fares
• Frequent point to point flights
• Low operating cost W:
• Acquiring Aer Lingus
• Accumulating losses of IR£20 million
• Cutting cost by replacing lossmaking routes in UK and Ireland with more profitable routes (limited frequency in certain routes)
• Airline noted for being controversial – bad media reports (e.g. annoying the Queen of Spain, plans to charge passengers to use the toilets during its flights)
• Not recognising workers unions
• Accused of poor working conditions
• High turnaround could impact on high CO2 emissions O:
• Economic recession assists Ryanair – the reduction in flights by the other European carriers in their plight to cut cost, is beneficial for Ryanair.
• The EU expansion plans creates more opportunities for Ryanair T:
• EU has established an Emissions Trading Scheme which will include the aviation industry
• Ryanair’s legal challenges
• Fuel prices – Jet fuel price fluctuations
• Customer complaints on blog sites and other media – poor customer service
• Threats of terrorist attacks
• Potential rises in insurance cost

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