Ryanair Pest Analysis

1046 Words5 Pages
fierce between 2 LCCs or when a LCC plans to enter a full service airlines sector. This is also true the other way around.
Bargaining Power of Buyers can be ranked as moderate with LCC’s coming into the picture since the deregulation of the industry and internet making it easy to book and fly. Customers tend to stick to known companies which have a strong presence in the market. Thus, it is safe to say that there is low-to-moderate bargaining power of buyers in this sector
Bargaining Power of Suppliers The three main costs for the airlines are fuel, labour and Airport charges. Fuel efficiency depends upon various factors, like the type of carrier and the distance travelled. Labour, on the other hand might have high bargaining power but Ryanair
…show more content…
Sweden and France saw a dip since 2014 as well.

PESTLE Analysis

Political : 1997 was a historical year in the aviation Industry as deregulation was announced, hence opening doors to many companies. It further eased out when the EU was formed. Most Ryanair routes are based within Europe hence making it easier for them to operate.
Economic : Ryanair can get affected by some deterrents like terrorist attacks. The aviation is still recovering from the attacks in 9/11 and the very recent disappearance of the Malaysian Airline also adversely affect the business. As Ryanair is a European operated career most operations are not affected in terms of currency exchange.
Social : There has been a huge influx of immigrants especially from eastern Europe due to more fair working conditions which in turn has benefited Ryanair as these immigrants prefer to travel on cost effective flights.
Technological : Due to the efficient buying of tickets online and check in facilities Ryanair is keeping up with the digital age scenario. Also technology can now help in reducing operating costs as
…show more content…
The CEO Michael O’Leary has been very smart at making Ryanair a leading airline in EU. Ryanair is known to be a very low cost airline covering most major routes in Europe. Its paid ancillary services are a huge part of its revenue. Customer care is one area where Ryanair has started to focus recently and will need to improve on gradually. Also, digital marketing is the other area of focus for them for instance the revenue that could come from the adverts on the online portal where ancillaries are booked etc.in the longer run Ryanair will need to look at flying to more destinations and across continents as well. Mergers and Acquisitions are a realistic option for achieving inorganic growth for

More about Ryanair Pest Analysis

Open Document