SWOT Analysis of Ryan Air

Weaknesses

• Ryanair have been exposed to some rather negative press, the media has perceived them as arrogant and minor occurrence seems to get a highlighted negatively in the press.  As being 1 of the competitors in its markets, Ryanair have limited any further growth due to having a niche market.  Even though Ryanair have a well established business, their workforce do tend to lack in people skills which is the forefront for their business when dealing with customers.  Ryanair’s low cost airlines are highly dependant on low business costs.

Opportunities

• Ryanair have highly been focused in the European sector, with new countries coming under the EU belt Ryanair have the opportunity to also target these new countries.  The current economic crisis has worked in favour for Ryanair.  A lot of higher budgeted customers have shifted to lower priced companies like Ryanair which helps increase turnover.

Threats

• Ryanair are highly dependant on the worlds oil market, if fuel costs go up, Ryanairs cost go up and the cost will be passed forward to the customers and to some extent limit business.  In the low budget market, customers are highly price conscious and so an increase may deter customers from the company.  Easyjet are seen as a major competitor for the company and sometimes they both take ruthless decisions to attack one another’s pricing; it would be a good idea for both to work together.  Ryanair could also to some extent be dependant on the economic climate as a boom could deter business from them and a slump could refer business to them.