Essay On Ryanair

5.1 Acquisition

First, the organization can concentrate on the procurement of other minor aircrafts to enforce its position in target markets and ultimately expand its market share, e.g., it can invest and get local carriers own by itself to upgrade their whole deal flights. In this way, clients can pick its subsidiary local auxiliaries or via utilization of whole deal flights or the syndicate. The Dragonair is an excellent example demonstrated by its actions. Accordingly, clients will have the capacity to choose to utilize their time with Cathay Pacific Airways at all levels from provincial to global.

We also know that to an Airline company, it has a weak bargain power to its supplier, from the previous analysis, specifically, we know that to C.P., most of its suppliers in fact are in a monopoly or oligopoly market, for example, according to the Porter’s five forces analysis for C.P., the manufacturers of aircrafts are a small number of companies, as well-known as Boeing and Airbus. In terms of airplane engines, the major suppliers are such as GE and Roll Royce. Likewise, in the airlines market, the main expense of execution is doubtlessly the fuel cost to the players in the industry, however, in front of the international oil market, those airlines companies have weak bargain power.

Thus, ideally, that would be extremely helpful for C.P. if it could acquire or merge with these suppliers. For example, assuming the Rolls Royce is acquired by an aircraft company, the Rolls