SWOT analysis of Ryanair

2394 WordsMar 25, 200910 Pages
Contents1. Background22. Theoretical framework33. SWOT analysis of Ryanair44. Challenges and recommendations for the future75. References81. BackgroundThe subject of this report is Ryanair - the first Low Cost Carrier in Europe - which was founded in 1985 (Ryanair.com History 2008). The firm began operations with a staff of 25 and a single 15-seat airplane flying between Waterford and London. In 1986 Ryanair received permission to begin flying four flights a day on the Dublin-London route. In doing so, they challenged the monopoly of British Airways and Aer Lingus with fares that were much lower. Ryanair's strategy was to offer simple, low-cost fairs and exemplary customer service. During the later part of the 80s Ryanair continued to…show more content…
Ryanair has managed to keep its focus on its objective, and has transformed itself to one of Europe's biggest airlines over two decades (LEX: RYANAIR 2003). Still it has issues for which the SWOT analysis will try to give answers from a strategic point of view:•Threat of competition and other modes of traffic•Financial crisis and Ryanair•Ways of further expansion•Prone to bad press: Ryanair is perceived as arrogant and the slightest incident gets a lot of press coverage (Milmo 2006)The SWOT analysis given below should help Ryanair to achieve their mission and goals. The vision and goals of Ryanair (Rynair.Com Strategy 2008) are:•To be the biggest and most profitable low fares airline in Europe•To make low cost a 'management religion' and be air fare passive•To target growth, actively manage load factors and the cost base•Growth will be based on opening new airports2. Theoretical frameworkJohnson, G., Sholes, K. and Whittington, R. define the SWOT analysis as "it summarizes the key issues from the business environment and the strategic capability of an organization that are most likely to impact on strategy development" (Johnson 2006). In order to provide a better understanding of the current situation of Ryanair and its strategic options toward reaching its mentioned objectives, a SWOT Analysis can be undertaken. SWOT Analysis is used to evaluate the Strengths, Weakness, Opportunities and Threats involved in a project, or any other

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