Strengths And Weaknesses: A SWOT Analysis Of Ryanair

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In SWOT quadrants, having more strengths would be a huge stepping stone to a company. Strength will create good reputation, increases customers’ loyalty, profitability and also in gaining new customers. As for Ryanair Holdings, it has built a very strong brand name for over more than 25 years since it was founded in 1985. Strong brand name would be a very tough strength to beat by other competitors. Brand name has made the customers stick to Ryanair as it fulfills all their needs and wants. Even though this company has suffered severe financial crisis in 1990, after restructuring in which they adopted the Southwest Airlines business model, Ryanair became the pioneer of the low-fares model in Europe. On the other hand, another strength that…show more content…
As for Ryanair Holdings, their primary method is using the cost control which leads by using secondary airports. The drawback of using secondary airport is that it is far from the city center. It brings hassle for the customer to travel again to the city center. The other bad things happened to this airline as in 2009, The Air Transport Users’ Council claimed that Ryanair had the most complaints. The top complaints include cancellations, missing bags, and denied boarding. It also indicates that Ryanair has a very poor customer service. The CEO O’Leary also claimed that customer service was poor in a Businessweek article entitled “Ryanair’s O’Leary: The Duke of Discomfort”. The article stated that for the exchange of the cheap fares, passengers will do anything for everything like on Ryanair, they include high luggage fees, minimal customer service, bad expensive food, cramped seats and flights to secondary airports that are very far from the actual city. Sometimes, it took hours to arrive at the actual city from the secondary airports. Apart from that, Ryanair also has paid £88 million regarding the implementation of EU and Irish legislation standards. EU 261 stated that requires compensation and assistance to passengers in the event of denied boarding, flight cancellation and also long delays. These were the awful events that the…show more content…
Relating to Ryanair Holdings, ancillary services bring revenues beyond the sale of a ticket and in the company’s website contains offers for car hire, travel insurance, hotels, airport transfer and others. These ancillary services open new opportunities of having contracts with companies to handle the services and Ryanair receives fees from these companies as for the advertising purposes in Ryanair’s websites. For example, Ryanair has contract with Hertz Corporation whereby Hertz handled all the rentals marketed through Ryanair’s website in exchange for a per passenger fee paid to Ryanair. Besides that, Ryanair also collaborate with the travel-media company to sell targeted advertising that will appear on their boarding passes. Ryanair also has used the power of internet as the opportunity to broaden the business. All the bookings, check-in and boarding are using via online or call center. From the website itself, passengers got to choose whatever service that they desired for example ‘reserved seating’ and ‘priority boarding’. All flight cancellation, change of name, refunds are all accessible through internet. This will make things easier for the passengers. The use of the website can benefit the company as it will increase the advertising and promotion revenues. Apart from
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