Essay on Analysis of Ryanair

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Analysis of the low cost airline industry and internal analysis of Ryanair

Submitted to: Vladan Hadzic
Student ID: 20000910
Module: International Business Management and Strategy
Date: 05 August 2011

Title Page No
Part one:
PESTEL Analysis
Porters Five Forces
Part two:
Internal Analysis of Ryanair: Strengths & Weaknesses
Value Chain Analysis Of Ryanair
Financial Analysis Of Ryanair
Appendices A) Value chain analysis B) Financial ratios of Ryanair and Easyjet C) Ryanair acquisition of companies and marketing mix


Ryanair established in 1985 carrying more than 5,000 passengers between its route Waterford Airport in Ireland to
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The recession in 2008 resulted in travelers seeking cheaper fares and led to growth in sales for budget airlines. This opportunity during recession allows budget airlines to take advantage and of more travelers seeking low fares with budget airlines rather than more expensive airline tickets.
With the higher oil prices, natural disasters in Japan, discontent in the Middle East, North Africa and can force competitors in the airline industry to increase prices and fuel surcharges which pose major threats to airlines profits and survival of airlines.
The growth in demand for passengers seeking low cost airlines for cheaper fares is an opportunity for budget airlines. People are living a better standard of life with declining inequality of incomes made up mostly of middle class income people. People are also more well-travelled, experienced and seek new destinations with the growth of vacation property (Goeldner and Ritchie, 2009). This is an opportunity as budget airlines frequently service short haul destinations for short trips or weekend trips for leisure or business purposes offering more destinations and new experiences to people with low fares. Migration has also made commuting a factor with people seeking employment opportunities and education as a motive for travelling as well as the rising quality standards has shown to expect growth for low cost airlines (Gross and Schröder, 2007).

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