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PESTI ANALYSIS

Presented by:

Sean Maloney - B00103334

Oran Moloney - B00103585

Ryan O'Connor - B00103137

Daniel Cullinan - B00102803

CONTENT

contents

  • Ryanair

  • Introduction

  • P - political

  • E - economical

  • S - Social

  • T - Technological

  • I - Industry

  • Conclusion

  • References

RYANAIR

RYANAIR

  • Ryanair markets itself as Europe's leading low cost and short - haul airline. (Ryanair. 2015)

  • Ryanair and EasyJet were the first two companies to take on the low cost concept in Europe.

  • HQ based in Dublin Ireland with a secondary headquarters in London's Stansted airport.

  • Operate within 33 countries and over 200 airports.

  • Carry more international passengers than any other airline worldwide.

INTRODUCTION

Introduction

  • PESTI is the acronym which stands for Political, Economical, Social, Technological and Industry analysis.

  • This stradegy of analysis is designed to consider what effect external influences have on an organisation’s activity.

  • The information garnished from a PESTI analysis is fundemental to the success of developing a strong and effective strategic/business plan for a company

POLITICAL

POLITICAL

  • Ryanair operates predominantly throughout the eurozone region, hence the political environment within, can greatly influence strategic planning for the business . (Ryanair. 2015)

  • Issues such as war , terrorism and disease can influence border controls.

  • Legal and legislative issues are not just restricted to the jurisdiction of country of origin as all cases can be refered to the European Courts.

  • Legislative or tax alterations may see Ryanair pass the costs onto their customers or effect their bottom line.

  • EU countries sponsor their national carriers, therefore Ryanair develop alternative routes to create competition and remain profitable. (Kasi. 2017)

ECONOMICAL

ECONOMICAL

  • Fuel prices are constantly fluctuating making it difficult for Ryanair to maintain a consistant flight spend.

  • As a result of Brexit, Sterling is weaker which has put pressure on fare prices.

  • Inflation rates can cause production costs and airline fares to increase. However, the relatively stable inflation rate is a good sign for the future of Ryanair and the economy as a whole.

  • In recent years, the threat of substitutes has become an increasing worry for Ryanair. An example of this can be seen in the development of high speed trains or underwater channels (England to France).

SOCIAL

SOCIAL

  • The Social environment for Ryanair is mainly categorised by demographic trends, particularly ageing population and the change of consumer preferences.

  • The increase of travelling lifestyles will improve the business of Ryanair. For e.g. educational trips, backpack and family trips, business trips.

  • Consumers willing to spend more on ancillaries if tickets cost less.

  • The "cocoon effect" where people tend to avoid travelling and stay at home following a terrorist attack, has become more relevant to the airline industry.

TECHNOLOGICAL

TECHNOLOGICAL

  • Technology plays an important role in the success and development of success in a business.(Muineacahin, 2014)

  • We will discuss technological advancements.

  • Ryanair is spending millions on research, renewable energy and carbon emmission levels. (Harper. 2016)

  • New discoveries and developments (e.g internet sales and online check-ins).

  • Effect of Global Warming has forced Ryanair to undergo these developments.

  • The improved Ryanair website allows you to buy a plane ticket in a matter of minutes.

INDUSTRY

INDUSTRY

  • Competition with other airlines: Price watching, Marketing, Service, Influence , route selection. (Jeffries. 2017)

  • Regulation: A highly regulated industry where changes to legislation could dramatically affect competition both positively or negatively.

  • Airport Selection: looking for the regional airports that will provide the cheapest fees but are still within reasonable distance of desired locations.

  • Outsourcing services: Using existing service providers with the experience and know how to avoid set up and continual costs to provide the same function.

  • Salaries: Staff will always be looking to improve their personal circumstances from a remuneration aspect once they have been trained and gained experience, so salaries must remain attractive and competitive.

CONCLUSION

CONCLUSION

  • By and large Europe is seen as a politically and enviromentaly stable economy to operate a business within. With general econonomic and environmental legislation that allows the airline industry to operate in a fair and open market.

  • Europe has seen major growth in the airline industry, in particular since the introduction and establishment of budget airlines

  • The main forseeable problem is of course Britians decision to leave the Union which will have an effect on the industry depending on the trade agreements approved by both sides and what borders are established.

  • The current working population of Europe stands at aproximately 65.3% out of a population of 510 million, providing a healthy consumer market for the industry to operate within.

REFERENCES

REFERENCES

  • (Alberto.2017) Primary External Factors Affecting Ryanair http://www.ivoryresearch.com/writers/jonathan-alberto/ .
  • (Barakaat. 2017) Ryanair Swot and Pestle Analysis https://www.swotandpestle.com/ryanair/ .
  • (Harrybachan.2017) Pestle Analysis of Ryanair https://www.scribd.com/document/91903668/PESTLE-of-Ryanair .
  • (KASI.2017) Pestel Analysis of Ryanair http://freepestelanalysis.com/pestel-analysis-of-ryanair/ .
  • (Stratmanryanair. 2012) Ryanair Pestel https://stratmanryanair.wordpress.com/ .https://www.scribd.com/document/91903668/PESTLE-of-Ryanair .
  • (Student.2015) Pest Analysis of Ryanair https://www.ukessays.com/essays/marketing/pest-analysis-of-ryanair-marketing-essay.php .
  • (UK Essays.2013) Understanding Ryanairs External Environment And Industry Commerce Essay. [online]. Available from: https://www.uniassignment.com/essay-samples/commerce/understanding-ryanairs-external-environment-and-industry-commerce-essay.php?cref=1 [Accessed 8 November 2017].
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