Three Firms: Changes in Their Enviroment

Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair

There has been no change to Apple Code of Conduct policy since 2014 when Apple started taking previous audit scores into consideration and conduct detailed risk assessments with suppliers who had not been audited in the past before awarding the new business. In 2014, we reviewed 459 suppliers, and factored their responsibility performance into our decisions. This engagement has allowed Apple to address over 700 findings related to labor standards, worker safety, permits, environmental hazards, and chemical management before production began (Apple

The strategic plan of Ryanair has been to establish itself as Europe’s leading low-fares airline.” Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.” (www.ryanair.com)

The internet results in less fragmented pricing information and the ability to compare prices across multiple carriers. Airlines now offer promotions and extra services to attract buyers and therefore customers have an abundance of choice. As significant buyer power exists, industry returns can accrue to buyers through lower prices and discounts.

Evaluate the impact of changes in the economic environment on a selected business – D1

Over the years, company sustained low operation costs and tickets prices following well-developed strategy. Among other measures, it was able to keep prices low by flying only one airplane type, minimizing service and maintenance expenses, and convincing employees to cut gate turn-around times and make the airline more efficient (Fitzpatrick, 2005).

Airlines must operate within a low-margin, high-fixed-cost environment, making profitability particularly sensitive to decreases in volume, either from environmental factors (e.g., the September 11,2001 attacks) or from competition. Moreover, the airline business is labor-intensive. Labor costs as a percentage of revenues ranges from a low of about 25 percent for the low-fare airlines to almost 50

The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or

Since the airline industry is a direct product of market conditions, it is greatly affected by all externalities. Many people noticed a decline in travel after the September 11th tragedy occurred due to safety concerns. When there is a huge increase in fares that definitely interferes with the demand for travel; it causes the price of tickets to continue to rise since a clear correlation between supply and demand exists. When the economy is doing well in terms of the employment rate, and when the dollar is strong people have the tendency to travel more (Jerram,1998).

The analysis carried out in this work is grounded on the basis of interviews and relevant analysis of the findings from a comprehensive perspective. The topics selected are important since they encompass a wide array of factors that can critical affect a company’s performance, and their management, according to the Body of Literature, is very much needed.

Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown

In an attempt to achieve high performances in the competitive economy, the airline industry specializes on the vocational and unrivalled price consideration. Among its long-term strategies that enhance its competitiveness include; high service standards, blanket coverage, market positioning and segmentation, ticket booking, low price considerations, flight connections and safety of the passengers and staff and the overall efficiency in its operations.

We will see how Ryanair was successful as world’s one of the most favoured low-fare airline and how did it apply each of this mix by putting in the

During 2002, Ryanair would charge its one-way fares at about 50 Euros. The Pricing approach adopted by Ryanair more commonly termed the ‘Ryanair effect’ had become a popular marketing strategy worldwide. Part of the Ryanair’s strategy for increasing market demand is the distributing of free tickets. In the first few months of 2003, Ryanair had distributed 100,000 free seats as a way to celebrate its opening of its new outlet at Bergamo. As a result, Ryanair received 90million passengers in 2004 and consequently offered 900,000 seats at 90 pence. Researchers have accumulated that within 5 years time, Ryanair would plan on giving away 50% of its flight tickets for free. Accordingly passengers’ perception of LCCs will thus expect lower fares from Low-Cost Carriers, especially from Ryanair. Research was drawn to asses the cross-price elasticity of demand between Low-Cost Carriers and full-Service Carriers. The aim was to figure out the behavioural patterns of passengers if they are willing to switch from Low-Cost Carriers to traditional airlines if fare levels reduced significantly. Results show that If Full-Service airlines reduced their fares by 30%, then 45% of Ryanair’s passengers and 39% of Air Asia’s passengers would be willing to switch airlines. Even if Low-Cost Carriers in Asia was just relatively a new phenomenon, they have already adopted strong low fare

The success of budget airlines forced traditional operators to lower their prices by adapting internet sales and yield management techniques. However they still struggle to compete with low prices offered by the LCCs. Further reductions in traditional airline ticket prices are expected.