Ryanair Holdings plc SWOT Analysis & Matrix

According to global executive survey done by Harvard Business Review & Brightline Initiative
– Only 20% of the strategic targets set by organizations are realized. Rest 80% of the
strategic targets are not achieved because of incomprehensive planning, limited resource
allocation, and poor execution.

The successful organizations such as Ryanair Airline are the one who able to predict market
trends better than others, provide resources to develop products and services to leverage
those trends, able to counter competitors’ threats, and meet customers’ expected value
proposition.

Case Description of Ryanair Holdings plc Case Study

Examines the valuation of an Irish airline that reported its first decline in net
income in 2004 and saw a 30% stock price drop on the news. Ryanair is a low-
cost, low-fare airline headquartered in Dublin, Ireland, operating over 200
routes in 20 countries. The company has directly challenged the largest airlines
in Europe and has built a 20+ year track record of incredibly strong passenger
growth while progressively reducing fares. It is not unusual for one-way tickets
(exclusive of taxes) to sell on Ryanair's Web site for less than one euro. Having
created profitable operations in the difficult airline industry, industry analysts
and Ryanair itself have likened the airline to its U.S. counterpart, Southwest
Airlines, and the common stock has attracted the attention of investors in
Europe and abroad. Valuing Ryanair is problematic because of the general
levels of uncertainty in the industry (i.e., fuel costs, labor, macroeconomic
factors, etc.) and is exacerbated by the company's stated goal of actually
decreasing What are the Four Elements of SWOT Analysis? How to use
them for Ryanair Holdings plc case study?

The four key elements of SWOT analysis are - Strengths, Weaknesses,

Opportunities & Threats. Ryanair Airline can use strengths to create niche
positioning in the market, can strive to reduce & remove weaknesses so that it can
better compete with competitors, look out to leverage opportunities provided by
industry structure, regulations and other development in external environment, and
finally make provisions and develop strategies to mitigate threats that can
undermine the business model of Ryanair Airline.
What are Strengths in SWOT Analysis

Strengths - Ryanair Holdings plc

Strengths are the Ryanair Airline capabilities and resources that it can leverage to
build a sustainable competitive advantage in the marketplace. Strengths come from
positive aspects of five key resources & capabilities - financial resources, past
experiences and successes, activities & processes, physical resources such as land,
building, and human resources .

- Managing Regulations and Business Environment – Ryanair Airline operates in an

environment where it faces numerous regulations and government diktats. In Costs,
Financial analysis, Forecasting areas, the firm needs to navigate environment by
building strong relationship with lobby groups and political network.

- Strong Balance Sheet and Financial Statement of Ryanair Airline can help it to invest
in new and diverse projects that can further diversify the revenue stream and
increase Return on Sales (RoS) & other metrics.

- First Mover Advantage – Ryanair Airline has first mover advantage in number of
segments. It has experimented in various areas Costs, Financial analysis, Forecasting.
The Finance & Accounting solutions & strategies has helped Ryanair Airline in
coming up with unique solution to tap the un-catered markets.
- High Margins – Ryanair Airline charges a premium compare to its competitors.
According to Mark T. Bradshaw of Ryanair Holdings plc case study, this has provided
Ryanair Airline resources to not only thwart competitive pressures but also to invest
into research and development.

- Superior product and services quality can help Ryanair Airline to further increase its
market share as the current customer are extremely loyal to it. According to Mark T.
Bradshaw in Ryanair Holdings plc study – there are enough evidences that with such
a high quality of products and services, Ryanair Airline can compete with other global
players in international market.

- Intellectual Property Rights – Ryanair Airline has garnered a wide array of patents
and copyrights through innovation and buying those rights from the creators. This
can help Ryanair Airline in thwarting the challenges of competitors in various
industries Costs, Financial analysis, Forecasting.

- Diverse Product Portfolio of Ryanair Airline – The products and brand portfolio of
Ryanair Airline is enabling it to target various segments in the domestic market at the
same time. This has enabled Ryanair Airline to build diverse revenue source and
profit mix.

What are Weakness in SWOT Analysis

Weakness- Ryanair Holdings plc

Weaknesses are the areas, capabilities or skills in which Ryanair Airline lacks. It limits
the ability of the firm to build a sustainable competitive advantage. Weaknesses
come from lack or absence of five key resources & capabilities - physical resources
such as land, building, activities & processes, financial resources, human resources,
and past experiences and successes .

- Track record on environment consideration is not very encouraging – Ryanair

Airline track record on environmental issues is not very encouraging. According to
Mark T. Bradshaw , this can lead to consumer backlash as customers are now
considering environmental protections as integral to part of doing business.

- Customer Dissatisfaction – Even though the demand for products have not gone
down but there is a simmering sense of dissatisfaction among the customers of
Ryanair Airline . It is reflected on the reviews on various on-line platforms. Ryanair
Airline should focus on areas where it can improve the customer purchase and post
purchase experience.

- Lack of critical talent – I believe that Ryanair Airline is suffering from lack of critical
talent especially in the field of technology & digital transformation. Ryanair Airline is
struggling to restructure processes in light of developments in the field of Artificial
Intelligence (AI) and machine learning.

- Lack of Work force diversity – I believe that Ryanair Airline is not diverse enough
given that most of its growth so far is in its domestic market. According to Mark T.
Bradshaw , this can reduce the potential of success of Ryanair Airline in the
international market.

- Implementation of Technology in Processes – Even though Ryanair Airline has

integrated technology in the backend processes it has still not able to harness the
power of technology in the front end processes.

- Organization Culture – It seems that organization culture of Ryanair Airline is still

dominated by turf wars within various divisions, leading to managers keeping
information close to their chests. According to Mark T. Bradshaw of Ryanair Holdings
plc case study, this can lead to serious road blocks in future growth as information in
silos can result can lead to missed opportunities in market place.

What are Opportunities in SWOT Analysis

Opportunities- Ryanair Holdings plc

Opportunities are macro environment factors and developments that Ryanair Airline
can leverage either to consolidate existing market position or use them for further
expansion. Opportunities can emerge from various factors such as - political
developments & policy changes, economic growth, changes in consumer
preferences, technological innovations, and increase in consumer disposable
income .

- Changing Technology Landscape – Machine learning and Artificial Intelligence

boom is transforming the technology landscape that Ryanair Airline operates in.
According to Mark T. Bradshaw , Ryanair Airline can use these developments in
improving efficiencies, lowering costs, and transforming processes.
- Increasing Standardization – Ryanair Airline can leverage this trend to reduce the
number of offerings in the market and focus the marketing efforts on only the most
successful products.

- Opportunities in Adjacent Markets – Ryanair Airline can explore adjacent industries

Costs, Financial analysis, Forecasting to further market growth especially by
extending the features of present products and services.

- Reducing Cost of Market Entry and Marketing into International Markets –

According to Mark T. Bradshaw, globalization along with boom in digital marketing
and social media has considerably reduced the risks of market entry and marketing
in international market.

- E-Commerce and Social Media Oriented Business Models – E-commerce business

model can help Ryanair Airline to tie up with local suppliers and logistics provider in
international market. Social media growth can help Ryanair Airline to reduce the cost
of entering new market and reaching to customers at a significantly lower marketing
budget. It can also lead to crowd sourcing various services and consumer oriented
marketing based on the data and purchase behavior.

- Growing Market Size and Evolving Preferences of Consumers – Over the last decade
and half the market size has grown at brisk pace. The influx of new customers has
also led to evolution of consumer preferences and tastes. This presents Ryanair
Airline two big challenges – how to maintain loyal customers and how to cater to the
new customers. Ryanair Airline has tried to diversify first using different brands and
then by adding various features based on customer preferences.

What are Threats in SWOT Analysis

Threats- Ryanair Holdings plc

Threats are macro environment factors and developments that can derail business
model of Ryanair Airline. Threats can emerge from various factors such as -
technological innovations, changes in consumer preferences, economic growth,
increase in consumer disposable income, and political developments & policy
changes .

 US China Trade Relations – Ryanair Airline has focused on China for its next phase of
growth. But there is growing tension between US China trade relations and it can
lead to protectionism, more friction into international trade, rising costs both in
terms of labor cost and cost of doing business.
- International Geo-Political Factors – Since the Trump election, geo-political factors
have taken a turn for growing protectionism. Developments such as Brexit, Russian
sanctions, foreign exchange crisis & inflation in Venezuela, lower oil prices etc are
impacting international business environment. Ryanair Airline should closely focus on
these events and make them integral to strategy making.

- Culture of sticky prices in the industry – Ryanair Airline operates in an industry

where there is a culture of sticky prices. According to Mark T. Bradshaw of Ryanair
Holdings plc case study, this can lead to inability on part of the organization to
increase prices that its premium prices deserve.

- Increasing costs component for working in developed market because of

environmental regulations – Ryanair Airline has to deal with these costs as
governments are trying to levy higher environmental taxes to promote cleaner
options. For Ryanair Airline it may result into higher logistics costs and higher
packaging costs.

- Government Regulations and Bureaucracy – Ryanair Airline should keep a close eye
on the fast changing government regulations under the growing pressure from
protest groups and non government organization especially regarding to
environmental and labor safety aspects.

- Credit Binge post 2008 Recession – Easy access to credit can be over any time, so
Ryanair Airline should focus on reducing its dependence on debt to expand. The
party has lasted for more than a decade and rollback from Fed can result in huge
interest costs for Ryanair Airline.

Ryanair Holdings plc Porter Value Chain

Analysis & Solution
EMBA Pro Porter Value Chain Solution for Ryanair Holdings plc case
study

Examines the valuation of an Irish airline that reported its first decline in net income
in 2004 and saw a 30% stock price drop on the news. Ryanair is a low-cost, low-fare
airline headquartered in Dublin, Ireland, operating over 200 routes in 20 countries.
The company has directly challenged the largest airlines in Europe and has built a
20+ year track record of incredibly strong passenger growth while progressively
reducing fares. It is not unusual for one-way tickets (exclusive of taxes) to sell on
Ryanair's Web site for less than one euro. Having created profitable operations in the
difficult airline industry, industry analysts and Ryanair itself have likened the airline to
its U.S. counterpart, Southwest Airlines, and the common stock has attracted the
attention of investors in Europe and abroad. Valuing Ryanair is problematic because
of the general levels of uncertainty in the industry (i.e., fuel costs, labor,
macroeconomic factors, etc.) and is exacerbated by the company's stated goal of
actually decreasing fares each year.

Value Chain and Value System

Ryanair Airline value chain is part of a larger value system of the industry that
includes companies either upstream (suppliers) or downstream (distribution
channels), or both. Manager at Ryanair Holdings plc needs to see each activity as
part of that value system and how adding each activity or reducing each activity
impact the Ryanair Holdings plc value chain. The decision is regarding where to sit in
the value system.

EMBA Pro VRIO / VRIN Analysis Solution for Ryanair Holdings plc case
study

Examines the valuation of an Irish airline that reported its first decline in net income
in 2004 and saw a 30% stock price drop on the news. Ryanair is a low-cost, low-fare
airline headquartered in Dublin, Ireland, operating over 200 routes in 20 countries.
The company has directly challenged the largest airlines in Europe and has built a
20+ year track record of incredibly strong passenger growth while progressively
reducing fares. It is not unusual for one-way tickets (exclusive of taxes) to sell on
Ryanair's Web site for less than one euro. Having created profitable operations in the
difficult airline industry, industry analysts and Ryanair itself have likened the airline to
its U.S. counterpart, Southwest Airlines, and the common stock has attracted the
attention of investors in Europe and abroad. Valuing Ryanair is problematic because
of the general levels of uncertainty in the industry (i.e., fuel costs, labor,
macroeconomic factors, etc.) and is exacerbated by the company's stated goal of
actually decreasing fares each year.
What is the VRIO framework / model? What are the components of VRIO?
Why is VRIO important?

VRIO Framework was first developed by Jay B Barney to evaluate the relative
importance of resources to the firm. VRIO stands for – Value of the resource,
Rareness of the resource, Imitation Risk, and Organizational Competence. VRIO
is a resource focused strategic analysis tool. Leaders at Ryanair Airline can use VRIO
to build sustainable competitive advantage by better understanding the role of
resources in Ryanair Airline’s overall business model.

VRIO Analysis of Ryanair Holdings plc

VRIO analysis of Ryanair Airline is a resource oriented analysis using the details
provided in the Ryanair Holdings plc case study. Resource-based strategic analysis is
based on the assumption that strategic resources can provide Ryanair Airline an
opportunity to build a sustainable competitive advantage over its rivals in the
industry. This sustainable competitive advantage can help Ryanair Airline to enjoy
above average profits in the industry and thwart competitive pressures.
What is a Resource in VRIO? Classification of Resources for VRIO Analysis.

Resources of an organization can be categorized into two categories - Tangible

resources and Intangible Resources. Tangible resources of Ryanair Airline include -
physical entities, such as land, buildings, plant, equipment, inventory, and money.
Intangible resources of Ryanair Airline are –skill and administrative level of managers,
brand names and goodwill of the company, intellectual property rights, copyrights,
trademarks, and special relationship with supply chain partners.

The four components of VRIO used in Ryanair Holdings plc analysis are –

Valuable – Is the resource valuable to Ryanair Airline. According to Mark T. Bradshaw

of the case study following are the critical resources that are valuable to the firm -
financial resources, human resources, marketing expertise, and operations
management.

Rare – "Ryanair Airline" needs to ask is whether the resources that are valuable to the
Ryanair Airline are rare or costly to attain. If they are not rare than both present
competitors and new entrants will easily able to get access to them and enter the
competitive landscape.

Costly to Imitate – At present most industries are facing increasing threats of

disruption. According to the data provided in Ryanair Holdings plc – it seems that the
core differentiation of the Ryanair Airline is difficult to imitate. On a broader scale –
imitation of products of Ryanair Airline can happen in two ways – Duplication of the
products of the company, and competitors coming up with substitute products that
disrupt the present industry structure.

Organizational Competence & Capabilities to Make Most of the Resources – It

measures how much the company has able to harness the valuable, rare and difficult
to imitate resource in the market place. The exploitation level analysis for Ryanair
Airline products can be done from two perspectives. Is the firm able to fully exploit
the potential of the resource, or it still has lots of upside.
Often the exploitation level is highly dependent upon execution team and execution
strategy of the firm. So exploitation level is a good barometer to assess the quality of
human resources in the organization. Capabilities tend to arise or expand over time
as a firm takes actions that build on its strategic resources.
VRIO and VRIN of Ryanair Holdings plc

Another extension of VRIO analysis is VRIN where “N” stands non substitutable. A
resource is non substitutable if the competitors can’t find alternative ways to gain the
advantages that a resource provides. In the VRIO analysis we can include the
disruption risk under imitation risk.

Define the four characteristics of resources that lead to sustained competitive

advantage as articulated by the resource-based theory of the firm.

The characteristics of resources that can lead to sustained competitive advantage as

per the resource based theory of the firm are –

Value of the Resources

Rareness of the Resources

Imitation and Substitution Risks associated with the resources.

Organizational Competence to exploit the maximum out of those resources.

What is PESTEL / PEST / STEP Analysis? How you can use PESTEL Analysis
for Ryanair Holdings plc
At EMBA PRO, we specialize at providing professional PESTEL analysis & other
strategic management MBA resources. Ryanair Holdings plc case study PESTEL
analysis includes macro environment factors that impact the overall business
environment – Political, Economic, Social, Technological, Environmental, and Legal
factors.

Ryanair Holdings plc case study (referred as “Ryanair Airline” for purpose of this
article) is a Harvard Business School (HBR) case study covering topics such as Finance
& Accounting and strategic management. It is written by Mark T. Bradshaw and shed
light on critical areas in field of Finance & Accounting, Costs, Financial analysis,
Forecasting that the protagonist in the case study is facing.

Managers at Ryanair Airline need to examine three inter-related environments in

order to come up with an effective strategy. The three inter-related environments are
– industry environment in which the company operates in, the geographic market or
country in which company operates, and wider socio economic / macro environment.
PESTEL analysis is mainly the assessment of macro environment factors.

Case Description of Ryanair Holdings plc Case Study

Examines the valuation of an Irish airline that reported its first decline in net income
in 2004 and saw a 30% stock price drop on the news. Ryanair is a low-cost, low-fare
airline headquartered in Dublin, Ireland, operating over 200 routes in 20 countries.
The company has directly challenged the largest airlines in Europe and has built a
20+ year track record of incredibly strong passenger growth while progressively
reducing fares. It is not unusual for one-way tickets (exclusive of taxes) to sell on
Ryanair's Web site for less than one euro. Having created profitable operations in the
difficult airline industry, industry analysts and Ryanair itself have likened the airline to
its U.S. counterpart, Southwest Airlines, and the common stock has attracted the
attention of investors in Europe and abroad. Valuing Ryanair is problematic because
of the general levels of uncertainty in the industry (i.e., fuel costs, labor,
macroeconomic factors, etc.) and is exacerbated by the company's stated goal of
actually decreasing fares each year.

Importance of PESTEL Analysis in Strategy Management & Planning

Process

Strategy planning process often requires five steps –

1. Choosing the vision, mission and the reason of existence for Ryanair Airline.

2. Analyze the Ryanair Airline external competitive environment to identify

opportunities and threats. PESTEL analysis is critical to understand the external
threats & opportunities arising because of the macro environment developments.
Changes in macro environment forces can impact the Porter Five Forces & industry
attractiveness. Thus significantly impacting the ability of Ryanair Airline to build
sustainable competitive advantage

3. Analyze Strengths and Weaknesses of Ryanair Airline.

4. Developing strategies that can capitalize on Ryanair Airline strengths and help
mitigate weaknesses and impact of threats of macro-environment.
5. Execution of the strategy and building a feedback loop, using which managers at
Ryanair Airline can fine tune processes and strategies going forward.

The Industrial Organization (I/O) approach advocates that for sustainable competitive
advantage external factors are as important as internal factors of the Ryanair Airline.
According to Michael Porter organizational performance is to large extend
determined by various industry forces.

What are Political Factors in PESTEL / PEST Analysis

The political factors play a huge role in not only investment decision by transnational
corporations but also by companies such as – Ryanair Airline. Political environment
and other factors not only impact the cost of doing business but also long term
sustainability. Some of the political factors are – governance system, democracy &
institutions, military coup chances, probability of armed conflict, law and order in
market etc.

Political Factors that Impact Ryanair Holdings plc

- Role Local Governments Play – Local governments are highly influential in the
policy making process and implementation as most of the policies and regulations
are implemented by the local government as enforcement agencies mostly report to
local government in their own states regarding various laws.

- Transition of Government and Changes in Policy – There is consistency in policy

making from one government to another. Secondly governments from all parties
adhere to the treaties made by the previous governments.

- Regulatory Practices - The regulatory practices are streamlined with global norms
which have helped the country to improve its “ease of doing business” ranking.

- International Trade & Other Treaties – The country has a good record of adhering
to international treaties it has done with various global partners. The government of
each party has adhered to the treaties done by previous governments, so there is a
consistency in both rule of law and regulations.

- Likelihood of Entering into an Armed Conflict – From the information in the Ryanair
Holdings plc case study, I don’t think there is a likelihood of country entering into an
armed conflict with a neighboring country.

Unrest within the Country & Chances of Civil Unrest – We don’t think that Ryanair
Airline business operations are facing any dangers from any kind of civil unrest or
internal militant operations in the country.
 Segregation of Political Responsibilities between Different Government Agencies –
There are numerous government agencies which reduces the risk of overwhelming
pressure by one agency. But on the flip side it does increases both time and cost of
doing business and getting certifications and clearances.

- Democracy & Other Democratic Institutions – According to Mark T. Bradshaw the

democratic institutions are needed to be strengthened further so that business such
as Ryanair Airline can thrive in an open, transparent and stable political environment.
Strengthening of democratic institution will foster greater transparency and reduce
the level of corruption in the country.

What are Economic Factors in PESTEL / PEST Analysis

Economic factors of a country and region have a direct impact on the potential
attractiveness of a given market. Some of the economic factors that Ryanair Airline
should evaluate both in the present market and one in which it wants to enter are –
inflation rate, GDP growth rate, disposable income level etc.

Economic Factors that Impact Ryanair Holdings plc

- Government Spending – As mentioned in the political factors, government of the

country is running deficit budgets. The implication for Ryanair Airline is that it can
boost sales of its product in short run but also expose Ryanair Airline to medium
term forex and currency depreciation risks.

- Inequality Index / Ranking on Gini Index – Gini Index and level of inequality are a
great barometer for harmony and development of a society. If there is huge income
inequality in the society then the likelihood of conflict and crime increases. It can
lead to uncertainty and suppression of consumption in both short term and long
term.

- Level of Household Income and Savings Rate – Increasing consumption and

stagnant household income in United States had led to credit binge consumption. It
has decimated the culture of savings as people don’t have enough to save. Ryanair
Airline needs to be careful about building marketing strategy that is dependent on
“Purchase on Credit” consumer behavior.

- Fiscal and Monetary Policies – The Republican government tax break culture has
increased the deficit and it can lead to fiscal trouble for the economy in coming
years.
- Employment Rate – If the employment rate is high then it will impact Ryanair Airline
strategies in two ways – it will provide enough customers for Ryanair Airline
products, and secondly it will make it expensive for Ryanair Airline to hire talented &
skillful employees.

Demand Shifts from Goods Economy to Service Economy – The share of services in
the economy is constantly increasing compare to the share of manufacturing, goods,
and agriculture sector.

- Inflation Rate – The inflation rate can impact the demand of Ryanair Airline
products. Higher inflation may require Ryanair Airline to continuously increase prices
in line of inflation which could lead to lower levels brand loyalty and constant
endeavors to manage costs. Cost Based Pricing could be a bad strategy under such
conditions.

What are Social Factors in PESTEL / PEST Analysis

Social factors such as demography trends, power structure in the society, women
participation in workforce etc have immense impact over not only the country's
economy but also on workforce talent availability and level of consumer demand.

Social Factors that Impact- Ryanair Holdings plc

- Attitude towards Authority – Various cultures in different part of the world have
different attitude towards authority. In Asia authority is respected while in west it is
something to rebel against. Ryanair Airline should carefully analyze the attitude
towards authority before launching a marketing campaign for its products and
services.

- Gender Composition in Labor Market Ryanair Airline can use gender composition
of labor market to understand the level of liberal nature of the society, women rights,
and women’s say in matter of societal issues and consumption decisions. The gender
composition of labor market is a good indicator of disposal income of household,
priorities of the households, and related needs.

- Education Level in Society – Education level of the society impacts both the quality
of jobs and level of income. High level of education often results in better jobs,
higher income and higher spending on complex and aspirational products.

- Level of Social Concerns & Awareness in Society – Higher level of social concerns in
the society often result higher consumer activism and pressure from non-
governmental organizations, & pressure groups.
- Demographic Trend – The demographic trend is one of the key factors in demand
forecasting of an economy. For example as the population of USA and EU is growing
old the demand for products mostly catering to this segment will grow. Ryanair
Airline should consider demographic trends before new product developments and
integrate features that cater to this segment. As population is ageing it will require
less tech intensive products.

- Attitude towards Health & Safety – The attitude towards health and safety is often
reflected in the quality of the products and cost structures of manufacturing
processes. Ryanair Airline has stringent norms for health and safety norms so in
emerging economies it may have to compete with players who don’t have high cost
structures that of Ryanair Airline.

- Types of Immigration & Attitude towards Immigrants – Given the latest

developments such as Brexit and Immigrant detention on Southern border of United
States. Attitude towards immigration has come under sharp focus. Ryanair Airline
should have capabilities to navigate under this hyper sensitive environment.

- Immigration Policies and Level of Immigration – What are the immigration policies
of the country, what is the level of immigration, and in which sectors immigration is
encouraged. This will enable the Ryanair Airline to determine – if required can it hire
talent globally to work in that particular market.

What are Technological Factors in PESTEL / PEST Analysis

Technology is fast disrupting business models across various industries. Some of the
technology trends that are impacting the macro environment are – developments in
artificial intelligence, use of machine learning and big data analytics to predict
consumer behavior, growing importance of platforms over service providers etc.

Technological Factors that Impact Ryanair Holdings plc

- Cost of Production and Trends – Ryanair Airline should assess - What are the cost
of production trends in the economy and level of automatization. We at EMBA Pro
believe that in near future the sector most disrupted by technological innovation is
manufacturing and production.

- Research and Development Investment Levels – If there is high level of investment

in technology development sector then there are high chances of building a self
sustaining ecosystem that drives innovation. Ryanair Airline can leverage such a
situation to hire the best people in business.

- Transparency & Digital Drive – Ryanair Airline can use digitalization of various
processes to overcome corruption in the local economy.

- Preparedness for 5G Related Infrastructure – Countries across the world are trying
to prepare themselves to install 5G infrastructure. Ryanair Airline should assess to
what level the local market is prepared to roll out the 5G connectivity.

- Level of Acceptance of Technology in the Society – Ryanair Airline has to figure out
the level of technology acceptance in the society before launching new products.
Often companies enter the arena without requisite infrastructure to support the
technology oriented model.

- Likelihood of Technology Disruption – If the country is hub of technology

companies then there is a high chance of technology disruption among various
industries. Ryanair Airline has to assess whether it can live with the fast pace of
technology disruption in its industry.

- Mobile Phone & Internet Penetration – Ryanair Airline should assess the level of
internet and mobile phone penetration in the country as it will it in building a
requisite business model based on local needs and realities.

- E-Commerce & Related Infrastructure Development – As E-Commerce is critical for

Ryanair Airline business model. It should evaluate the e-commerce infrastructure,
technology infrastructure etc before entering a new market.

What are Environmental Factors in PESTEL / PEST Analysis

Environmental factors are fast gaining traction not only among consumers but also
among regulators and policy makers. Climate change and changing ecosystem is
leading to the extinction of more than 20% of species on the planet by the turn of
this century.
Environmental Factors that Impact Ryanair Holdings plc

- Corporate Social Responsibilities Culture – Are Ryanair Airline present CSR efforts
applicable in the new market or does it needs to have new initiative to cater to the
prospective market.

- Waste Management – What is the policy of waste management in the prospective

market and how Ryanair Airline can adhere to the waste management requirements
in that market.

- Per Capita and National Carbon Emission – What is the per capita carbon emission
of the country and what is the overall level of carbon emissions of the country. This
will help in better predicting the environment policy of the country.

- Influence of Climate Change – How climate change will impact Ryanair Airline
business model and supply chain. For example if the supply chain is not flexible it can
lead to bottlenecks if shipments from one part of the world are delayed because of
sudden climate shift.

- Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the

Industry.

- Recycle Policies – What are the recycle policies in prospective market and how
Ryanair Airline can adhere to those policies.

- Focus & Spending on Renewable Technologies – How much of the budget is spend
on renewable energy sources and how Ryanair Airline can make this investment as
part of its competitive strategy.

What are Legal Factors in PESTEL / PEST Analysis

Legal factors often govern – conditions to enter the market, laws to operate in the
market, and procedure to resolve any dispute with other stakeholders. If the legal
system is not strong then Ryanair Airline can face numerous challenges – from
consumer petitions to shakedowns from authorities.

Legal Factors that Impact Ryanair Holdings plc

- Data Protection Laws – Ryanair Airline needs to assess what are the data laws in the
country and what it needs to do to comply with them. For example most of EU
countries now want the EU citizen data to be saved in EU countries only.

- Independence of Judiciary and Relative Influence of Government – The judiciary

independence often reflect both strength and credibility of the institutions in the
country.

- Laws regarding Monopoly and Restrictive Trade Practices – As a new player Ryanair
Airline shouldn’t be worried about the monopoly and restrictive trade practices law.

- Adherence to Common Law – Is the country following common law which is

uniform for all parties – whether domestic or international. If there is arbitrariness in
the judicial process then Ryanair Airline can’t be sure of the judgments.

- Employment Laws – What are the employment laws in the country and are they
consistent with the business model of Ryanair Airline. For example Uber employment
system is not consistent with French laws and it is facing challenges in the country.

- Securities Law – What are the securities law in the country and what are the
conditions to list the company on national or regional stock exchange.

- Consumer Protection Laws – Ryanair Airline needs to know what are the consumer
laws, what is the rate of enforcement, what is the attitude of authorities towards
consumer protection laws, and what is the role activist groups in enforcement of
consumer protection laws.

Objectives of using various frameworks in Ryanair Holdings plc case

study solution

By using the above frameworks for Ryanair Holdings plc case study solutions, you
can clearly draw conclusions on the following areas –

What are the strength and weaknesses of Ryanair Airline (SWOT Analysis)

What are external factors that are impacting the business environment (PESTEL
Analysis)

Should Ryanair Airline enter new market or launch new product (Opportunities &
Threats from SWOT Analysis)
What will be the expected profitability of the new products or services (Porter Five
Forces Analysis)

How it can improve the profitability in a given industry (Porter Value Chain

Analysis)

What are the resources needed to increase profitability (VRIO Analysis)

SWOT Analysis of Ryanair Holdings plc

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats.

Strengths and Weaknesses are result of Ryanair Airline internal factors, while
opportunities and threats arise from developments in external environment in which
Ryanair Airline operates. SWOT analysis will help us in not only getting a better
insight into Ryanair Airline present competitive advantage but also help us in how
things have to evolve to maintain and consolidate the competitive advantage.

Strengths
- High customer loyalty & repeat purchase among existing customers – Ryanair
Airline old customers are still loyal to the firm even though it has limited success with
millennial. I believe that Ryanair Airline can make a transition even by keeping these
people on board.

- Experienced and successful leadership team – Ryanair Airline management team

has been a success over last decade by successfully predicting trends in the industry.

Weakness
- Ryanair Airline business model can be easily replicated by competitors – According
to Mark T. Bradshaw , the business model of Ryanair Airline can be easily replicated
by players in the industry.

- Low profitability which can hamper new project investment – Even though Ryanair
Airline financial statement is stable, but going forward Ryanair Airline 5-7%
profitability can lead to shortage of funds to invest into new projects.

Opportunities
- Lucrative Opportunities in International Markets – Globalization has led to
opportunities in the international market. Ryanair Airline is in prime position to tap
on those opportunities and grow the market share.
- E-Commerce and Social Media Oriented Business Models – E-commerce business
model can help Ryanair Airline to tie up with local suppliers and logistics provider in
international market. Social media growth can help Ryanair Airline to reduce the cost
of entering new market and reaching to customers at a significantly lower marketing
budget.

Threats
- Age and life-cycle segmentation of Ryanair Airline shows that the company still
hasn’t able to penetrate the millennial market.

- Home market marketing technique won’t work in new markets such as India and
China where scale is prized over profitability.

Once all the factors mentioned in the Ryanair Holdings plc case study are organized
based on SWOT analysis, just remove the non essential factors. This will help you in
building a weighted SWOT analysis which reflects the real importance of factors
rather than just tabulation of all the factors mentioned in the case.