Strength

1. Strong brand name of lowfare airline

2. Economies of scale as being
biggest low price airlines in
Europe
3. Current low cost strategy
enables higher profit
4. New aircraft model enables
less cost of maintenance and
fuel
5. Single type fleet enables
lower training cost and
maintenance cost
6. First mover advantage of
being the first budget airlines
in Europe
7. High cash flow of
2708million enables
flexibility in strategic decision
Opportunity
1. Potential increase of market
in ancillary product
2. Popularity of company
website benefits the
advertising revenue and
promotion
3. Technology advance for
internet and new aircraft
models

Weakness
1. Reputation of providing poor
service
2. Poor working conditions
reduce loyalty of employee
3. Using secondary airport
which is far from city center

Threat
4. Increasing fuel price
5. More intense competition in
low-fare airline
6. Threat of security due to
terrorism
7. Regulations from EU and
local government
8. Legal issue with Irish
government and EC
9. Inflating rate of Euro
10. Foreseen economic
downturn

Political
1. EUs regulation and
restrictions in airline industry
(e.g. emission fee,
employees welfare, etc.)
2. Regional governments
regulation (e.g. tax, national
employment contracts with
France and Britain)
Social
1. Low-fare airline attracts
customers
2. Public image of providing
poor customer service
3. Poor working condition bring
bad corporate image
4. Misleading advertisement
lead to bad image
Environmental
1. New aircraft model enables
less emission
2. Stricter governance on
emission of CO2

Economic
1. Increase in fuel price lead to
increase in operation cost
2. Economic downturn in 2008
lowers organizations growth
rate
3. Exchange rate increase lead
to increase in operation cost
Technological
1. Use of internet to provide
online marketing, booking
and check-in service that
save time and cost
2. Advanced aircraft model
helps reducing emission and
cost
Legal
1. Misleading advertisement
violated media law
2. Poor working condition raise
law issue with EU and local
government
3. Acquisition of Aer Lingus was
rejected by the locals, EC and
UKOFT

Threat of
entry

1. High entry barriers (e.g. price, capital requirement,

distribution channel)
2. Low threat of entry
Threat of 1. Substitutes of budget airline includes train, bus,
Substitut
water transportation and premium airline
es
2. Few overlap in point-to-point transportation in
Europe
3. Low threat of substitutes
Bargainin 1. Multiple choice of budget airline in Europe (e.g.
g power
EasyJet, Aer Lingus, Virgin Express)
of buyers 2. High bargaining power of buyer due to low switching
cost
Bargainin 1. Only two major aircraft manufacturers in Europe
g power
(Airbus and Boeing)
of
2. High bargaining power due to high switching cost
suppliers
Rivalry
1. Ryanair dominate the leading position for budget
amongst
airline industry
competit 2. Potential growth for budget airline industry as it
ors
takes only 30% of airline industry
3. Low threat