Document page
ABR 2025 26(Entrepreneurial)printed 84 · PDF 98
102 pagesrevision 50940
printed 84 · PDF 98
Page image rendered from the stored file at 110 dpi; it sharpens as you zoom. Outlines are placed from each region’s stored position on the page (596 × 842 pt).
readable
Source of this text: embedded text layer. The better of the embedded text and OCR is kept.
president and his girlfriend, after a
lawsuit, they had to pay 60,000 euros.
SWOT ANALYSIS:
STRENGTHS: Now as we move onto the
swot analysis lets first look at their
strengths as they stem from their USP.
They have the lowest unit costs which
works in their favour as they utilise most
of their aircrafts, and they have a high
turnover rate which results in increased
efficiency. They also have secured their
spot as one of Europe's main airlines,
and due in part to this, they also have a
robust cash reserve with consistent
profitability and also have hedging
strategy cushions for fuel price shocks.
Also to cut costs they built their own
website and direct traffic towards it to
keep costs low as they don't have to
pay travel agents then, and since they
have standardised their fleet with the
main portion of it consisting of Boeing
737s-800s, they don't have to pay a lot
of costs on maintenance or training
costs. Weaknesses: However hand in
hand their strengths also create their
weaknesses, as their low costs results in
less money used for maintenance and
cleaning, and the quality of all their
items and as such customer satisfaction
plummets. And so it now has a view in
the market as “Only good since its
cheap”. Since RyanAir also tries to cut
costs everywhere, they have, at many
times, introduced pay cuts to their
employees which culminated into them
having a bad history with pilots and
unionization. As mentioned before they
also operate on tight schedules which
creates a lot of stress on the pilots and
staff which results in their being little
tolerance for disruptions, and when they
do occur it causes mayhem. Another
weak link is that they rely on one
airplane type, that is the
boeing,
and
as
such
they
are
susceptible to boeing related issues or
delays. Their marketing also warrants
severe backlash, not just from the public
but
also
in
regulatory
fines.
Opportunities: They have also had
numerous opportunities to grow their
business, as due to their quick turnover
of new planes and buying of 1 or 2 types
of airlines, they can easily bounce back
from fleet skeletization as shown when
after covid, legacy airlines took longer
to get their fleets up and running in
which time RyanAir was able to capture
most of the market. They can easily
expand their fleet by buying in bulk and
especially by buying the 737 MAX they
use more sustainable and greener
options through which they position
themselves as “lowest emissions per
passenger km” which can appeal to the
EU climate rules becoming stricter. As
African and Eastern European countries
start having more travellers, this results
in more of them moving towards
RyanAir due to its cheap prices and as
such RyanAir has organic traffic. Threats:
However the many threats that RyanAir
faces are marketwide such as how the
volatility of fuel prices could result in
them spiking and skyrocketing, which
can quickly erode their margins, or how
the EU could crack down on secondary
airports, which RyanAir prefers due to
lower fees, or on environmental rules
and state aid disputes. Nowadays aswell
many other airlines are also coming up
with this same budget airline model and
as
such
there
is
also
intense
competition. With wars coming around
the economy itself also seems to be at a
downturn which would impact the
airline and tourism industry severely and
also
as
green
right
activists
are
becoming more prominent, backlash
against
high
flight
frequency
is
increasing.
84
Enterprise Edition