ipl-logo

What Is Ryanair's Bargaining Power Of Buyers?

1046 Words5 Pages

fierce between 2 LCCs or when a LCC plans to enter a full service airlines sector. This is also true the other way around.
Bargaining Power of Buyers can be ranked as moderate with LCC’s coming into the picture since the deregulation of the industry and internet making it easy to book and fly. Customers tend to stick to known companies which have a strong presence in the market. Thus, it is safe to say that there is low-to-moderate bargaining power of buyers in this sector
Bargaining Power of Suppliers The three main costs for the airlines are fuel, labour and Airport charges. Fuel efficiency depends upon various factors, like the type of carrier and the distance travelled. Labour, on the other hand might have high bargaining power but Ryanair …show more content…

Sweden and France saw a dip since 2014 as well.

PESTLE Analysis

Political : 1997 was a historical year in the aviation Industry as deregulation was announced, hence opening doors to many companies. It further eased out when the EU was formed. Most Ryanair routes are based within Europe hence making it easier for them to operate.
Economic : Ryanair can get affected by some deterrents like terrorist attacks. The aviation is still recovering from the attacks in 9/11 and the very recent disappearance of the Malaysian Airline also adversely affect the business. As Ryanair is a European operated career most operations are not affected in terms of currency exchange.
Social : There has been a huge influx of immigrants especially from eastern Europe due to more fair working conditions which in turn has benefited Ryanair as these immigrants prefer to travel on cost effective flights.
Technological : Due to the efficient buying of tickets online and check in facilities Ryanair is keeping up with the digital age scenario. Also technology can now help in reducing operating costs as …show more content…

The CEO Michael O’Leary has been very smart at making Ryanair a leading airline in EU. Ryanair is known to be a very low cost airline covering most major routes in Europe. Its paid ancillary services are a huge part of its revenue. Customer care is one area where Ryanair has started to focus recently and will need to improve on gradually. Also, digital marketing is the other area of focus for them for instance the revenue that could come from the adverts on the online portal where ancillaries are booked etc.in the longer run Ryanair will need to look at flying to more destinations and across continents as well. Mergers and Acquisitions are a realistic option for achieving inorganic growth for

Show More
Related

  • European Union Dbq Essay

    1022 Words  | 5 Pages

    The European Union is currently undergoing economic struggles within its countries. Since joining the EU, Greece’s

    Read More

  • Swot Analysis Of Air Canada

    1235 Words  | 5 Pages

    The growing competition however does provide consumers with several choices and for Air Canada to be efficiently and constantly drawing its consumer it must offer " money for worth" deals, such as new multi-pass product, holiday packages and other promotional deals that has not yet been utilized in Canadian market. The possibility of Buyer power is moderate. Threat of New Entrants: Air Canada can be considered a fortunate airline as it does not have any major threat from new entrant stepping in Canadian airline industry due to the strict government legislation and regulations. “Even though the entry barriers for new airlines are lower in a deregulated market, still prospect of a new entrant entering the market is weak to moderate. Rivalry:

    Read More

  • Pest Analysis Of Nordstrom

    878 Words  | 4 Pages

    (P2.2) It is important that Nordstrom knows in what environment they work in when launching a new store therefore, an environmental audit gives an idea and figure in which the company operates or work. This can be done by a PESTLE analysis. Political Factors Political factors play a significant role in determining the factors that can impact Nordstrom 's long term profitability in a certain country or market. Nordstrom is operating in apparel stores in more than dozen countries and exposes itself to different types of political environment and political system risks.

    Read More

  • Economic Factors Affecting Qantas

    315 Words  | 2 Pages

    This article concerns various elements of the economic environment and their impact upon Qantas, such as significantly lower fuel prices. Representing its largest cost, lower oil prices as a result of oversupply and lack of demand have reduced Qantas’ fuel costs by $597 million since the previous year (O’Sullivan 2015a). Another contributing economic factor has been the Abbott government’s repeal of the carbon tax as part of its fiscal policy, which is said to have boosted Qantas’ pre tax earnings by $116 million (O’Sullivan 2015b). This article further relates to the economic environment as it discusses the impact of the falling value of the Australian dollar on Qantas. Its 25% decline since mid-2014 has encouraged Australian residents to

    Read More

  • Capsim Porter's Five Forces

    506 Words  | 3 Pages

    A supplier with strong bargaining power has the advantage of charging their price higher or selling low quality of the product to them. The bargaining power of suppliers will be low as there are many suppliers in the market offers similar products and this allows courts to switch to other suppliers that offer lower cost. Intensity of rivalry within industry High Threat Competitors in the industries There are quite a number of businesses involve home furnishing and electrical appliance.

    Read More

  • Pest Analysis Of Argos

    2674 Words  | 11 Pages

    1 Introduction Argos is an UK based home retail group. It is one of the largest companies of UK that have been running around 737 companies and they have around 340 million visitors of their websites as well. According to a study it has been found that they are covering about 90% of the population of United Kingdom within their 10miles of an Argos branch. As one of the largest company in UK Argos has a decent growth rate of 20%. They have more than 130million customer and around two third of the population have taken under their catalog.

    Read More

  • Five Forces Auto Insurance Industry

    864 Words  | 4 Pages

    If the economy is flourishing, it tends to increase the purchasing power of the individuals and it is likely that customers will be purchasing new, perhaps more expensive cars on a regular basis. Hence, the premiums and payments would increase. So when the economy is thriving, customers are likely to have more of disposable income which they are willing to spend on the leisure activities

    Read More

  • Pest Analysis Of Victoria Secret

    1466 Words  | 6 Pages

    1.INTRODUCTION OF COMPANY My PESTEL analysis for this piece of writing is based on the famous international lingerie company, Victoria Secret. Victoria Secret was founded in 1977 by Roy Raymond, and his wife. Roy Raymond’s interest in a lingerie line was sparked by his embarrassment when purchasing lingerie for his wife. It was then that he studied the market before deciding to go into business, opening their very first store in Palo Alto, California. His vision then, was to have a store that would make everyone, especially men, comfortable shopping for lingerie.

    Read More

  • Rolls Royce Pest Analysis

    1402 Words  | 6 Pages

    Introduction Rolls Royce Group Private Limited Company outlines, creates, fabricates and administrates engine for use on Air, Land & Sea. Of which, air is its major business division. The Aerospace division comprises of civil aerospace and defense aerospace while Land & Sea divisions involved of marine, nuclear and power systems (Reuters, 2015). Rolls-Royce was once an electrical and mechanical business that established by Sir Frederick Henry Royce in 1884.

    Read More

  • Porter's Five Forces Of Competitive Analysis: Vera Bradley

    1068 Words  | 5 Pages

    External Environment The Five Forces of Competitive Analysis The industry market is considering a large pool with significant of competitors competing with each other. The stronger the forces of competition, the harder it becomes for industry members to earn attractive profits. The ideal competitive environment for earning outstanding profits is when both suppliers and customers are in weak bargaining positions. Suppliers Bargaining Power Vera Bradley as a company that provides luggage and accessories industry gets raw material from many suppliers that have differentiated inputs.

    Read More

  • Jetblue Airways Swot Analysis Essay

    801 Words  | 4 Pages

    Executive Summary JetBlue Airways is a company that applies innovative technologies to offer high quality travel services at a lower cost (Shrivastava, 2012). A SWOT analysis of JetBlue airlines shows that despite the numerous opportunities and strengths it has, it is exposed to threats and weaknesses that pose challenges in its operations. The threats include issues like strong competition from other airlines and the volatility of the fuel prices. JetBlue Airlines is relatively new to the market when compared to its major competitors such as the Southwest and Delta Airlines. Most of its strategies have worked to its benefit.

    Read More

  • Political And Environmental Factors That Affect The Airline Industry

    885 Words  | 4 Pages

    Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the

    Read More

  • Forever 21 Pest Analysis

    901 Words  | 4 Pages

    Introduction Forever 21 is a clothing brand that is based in many countries. Most people would be very familiar with the brand as it caters to them in terms of a fashion retailer. The country that will be in this report would be in Singapore and the purpose of the report is to perform an environmental analysis on a company. The structure would be an introduction, followed by company background, country background, PESTEL analysis, porter’s 5 forces, strategic recommendations and conclusion.

    Read More

  • Holiday Inn: Porter's Five Forces Of Industry

    1384 Words  | 6 Pages

    Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to

    Read More

  • Ryanair: The Transformation Process In The Airline Industry

    855 Words  | 4 Pages

    2.0 Inputs - Transformation Process - Outputs 2.1 Inputs Operations management concerns with the conversion of inputs into revenue-creating outputs through the transformation process (Mahadevan, 2010, p.5). Slack et al. (1995 cited in McMahon-Beattie and Yeoman 2004, p.30) mention that inputs are divided in transformed and transforming. Transformed are those that are transformed in some way and transforming inputs are those that are used to carry out the transforming process.

    Read More

More about What Is Ryanair's Bargaining Power Of Buyers?

Open Document