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Pestel Analysis Of Ryanair

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The external factors happen outside of an organisation. They influence functions of internal business, its objectives and strategies.
The most important factor that has an effect on most businesses is the degree of competition-how well different businesses compete with products made or services provided by other companies.
There are other factors that can influence business. It’s a PESTEL analysis.
A PESTEL analysis is a setup or instrument used by to analyse and abserve the macro-environmental (external marketing environment) factors that can have an impact on a business.
Political- what kind of influence might governmental changes in their policies have on the business, eg. decisions to sponsor building new homes in the area could have positive …show more content…

The low cost of tickets is the key success for this company. Ryanair is known as the cheapest airlines in Europe. However in 2012 according to Irish Independent families found other airlines cheaper than Ryanair. The reason for this was the significant baggage charges during peak times like for example summer holidays. The Irish Independent survey found out that Aer Lingus was cheaper by €5 to …show more content…

Aer Lingus flights came in between €5 and €37 cheaper according to an Irish Independent survey. And this holiday price difference was mainly down to Ryanair’s practice of hiking up its baggage charges for peak periods.’’ (Irish Independent, Ryanair loses low-cost crown as families find cheaper flights, 2012).
The main opportunity for Ryanair to keep the prices of fares as low as possible is the cheap price of fuel. Low cost fuel means the expenses of flights are low therefore the company can afford cheap flights for their customers. Another opportunity are the cheap airport maintaining charges. Ryanair signs contracts to stay protected in case airport management decides to bring the costs up.
As we said the fuel price might be a very good opportunity if it’s low, however since 2005 there is a major increase of fuel and that makes a significant threat to the business. Having to spend a large amount of money on fuel makes it sometimes impossible not adding extra cost to passengers’ fares. Prices of competitive airlines tickets might have an impact on the organisation as well as customers might leave Ryanair for other brand and it might be difficult to bring them

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