Ryanair case study.
External analysis.
- PESTEL analysis
• Political = some countries give preferential treatment to companies from their own country. From the case study page 703 it states that ‘the French government attempted to protect Air France-KLM by forcing easyJet and Ryanair to move the staff they employ on French soil from British contracts to more expensive French ones’
• Economic = fuel prices-as they increased this caused a major problem for the airline industries and if they did not hedge they had to cut corners in order to save costs on other areas. Also all the airlines are working to reduce their costs and increase their profit margins, their efforts to decrease costs will have negative impact on the pilots and staff as they may have low wages of lack benefits that would otherwise have been there. There is also the issue that the market is becoming more competitive because of the emerging and developing countries having more people wanting flights and therefore more airlines in order to accommodate this and get a cut of the profits in the industry. With the current economic crisis there may be a fall in the demand for flights as we are in a recession and therefore there are job cuts and people have less disposable income meaning they cannot afford holidays. This could be a benefit to some of the cheap airline industries as people who are still able to afford a holiday will be looking for cheaper alternatives.
• Social-cultural =
• Technological = technology has improves which means that the whole industry is changing and becoming more environmentally friendly and efficient. More effective infrastructure in the airports means that some airports can charge the airlines more for landing there.
• Environmental = there are new laws that say that the airline industry has to be more environmentally friendly therefore the manufacturers, designers and airline companies have to combat this together in order to...