Three Firms: Changes in Their Enviroment

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Kingston university | Three Firms: Changes in Their Business Environment. | Business Economics | | Bienia, Patrycja | 3/12/2015 |

Table of Contents 1. Introduction 2 2. European Telecoms: Going mobile Again- The Economist Dec 20th 2014 2 2.1. Ryanair Warns Plunging Oil Price Will Hurt Profits–The Guardian Feb 02nd 2015 3 2.2 Aldi and Lidl set to win holiday season again as shoppers shy away from Asda, Tesco, Morrison and Sainsburys- The Guardian Dec 16th 2014. 5 3. Conclusion 6 4. References 8

1. Introduction
This report aims to recognize key economic factors that are affecting three different firms and provides a clear link between the discipline of economy and real life examples. The first story focuses on
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For example: Vodafone is warning that if BT purchases EE their company will go into broadband as well, O2 is announcing that they may go into an exclusive agreement with Three. The result of more telecom companies merging together can results in drastically lowering the prices in order to attract customer. It can be beneficial for clienteles; however it can hurt organisations profits. From the other hand, “quad-play” may put some people off due to lack of freedom-customer may be happy with broadband but unhappy with TV. In that case changing for different provider can be tricky.
2.1. Ryanair Warns Plunging Oil Price Will Hurt Profits–The Guardian Feb 02nd 2015
In 20th century air travel was exceptional and expensive; travel was restricted for wealthy individuals that tend to travel for special occasions. After the II World War improved design has modernised the industry and allowed to carry more passengers. That resulted in economies of scale that lowered the price of the ticket within reach of a regular person. Ryanair Ltd is an example of low cost carrier that revolutionised the airline industry by offering short-haul flights around the Europe for the lowest fares (Ryanair, 2015). In similarity to other businesses, the airline industry is affected by changes in its external environment. Ryanair as well as other low cost airlines can afford to cut the price of the ticket by reducing operating costs. One of the main
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