Analysis Of Ryanair

Submitted By mccullagh88
Words: 829
Pages: 4

An organization cannot be entirely self dependent in any cases at anytime. Even if an organization possesses all attributes and parameters in up to desirable marks, there are always some external factors that have effects, positive or negative, on the being of the organization. There are numerous contemporary issues that are putting forward their effects on all currently existing business platforms. A remarkable contemporary issue is picked up over here and its effects on a business industry are highlighted with details (Bellamy and Child, 1973). Moreover, the future effects are also being predicted such that the organization can design effective plans for future accordingly.
1. Selection of the organization
The organization which is selected over here to do research upon the effects of a contemporary issue on it is Ryanair Ltd. It is an Irish airline company which is specialized for its low costs. The company was founded in the year of 1985 and commenced its operation from then. Its approximate fleet size is 300 and it possesses 178 destinations in its operating list. Approximate number of employees of this organization is about 8400 as per the records of 2012 (, 2013). Net income of this organization is € 375 approximately and the ratio of total assets to total equity is 2.72 as per the records of 2012.
All the information provided above about the company is its basics. But apart from that, there are numerous x-factors which add to the opportunities and threats of the company. So, it is better to do SWOT analysis of the company such that the contemporary issue that is having the extreme effects upon it can be revealed.
SWOT analysis of Ryanair Ltd. Which comprises of the identification of the company’s strengths, weaknesses, opportunities and threats, is provided below:-
The company is formulating its business and carrying out its operations successfully for more than 25 years. It has already became successful is establishing their brand name which is truly stable in business world. This is the first strength for them. Advanced growth of revenue and the low rates of all airport charges as presented by Ryanair Ltd is the next strength. As it is having low fares, more customers will avail their services and will always prefer their services compared to any expensive ones. Thus, strong and secured customer base is surely their strength (D’ETAT and FRANCcais, Conseil d’Etat, 4 avril, 2008). Low distribution cost and low maintenance boeings of the organization are additional strengths. The agreesive style of leader as conducted by Micheal O’ Leary is also a strong point of the company.
Niche market was the initial weakness of Ryanair Ltd. This existed since the company was established. As it has low costs, so the incomes from their services are low. So, they could not afford to provide good service, and thus their poor service can be considered as a great weakness. The company is prone to bad press and has weak employee relations. Moreover, all its secondary airports are too far which is truly a weakness (Davies, 1993). The website of Ryanair Ltd is many a time considered as a misleading one which may degrade their efficiency to compete successfully with rising competitors. High turnaround that involves CO2 emissions are also its weakness.