International Business Essay Example | Topics and Well Written Essays - 2000 words - 4

International Business - Essay Example The airline grew at a faster rate through the acquisition of new planes and expanded route offerings that were made more appealing through such initiatives as frequent flyer program and business class seats. Despite the rise in the number of passengers, Ryanair continued to make losses due to the fact that it offered low fares though it was not a low-cost airline. As competition soared in the airline industry, the competing airlines, Ryanair was forced to lower their prices even further and eliminating the costly routes and increasing presence in the profitable routes. Through flying to regional airports that have lower costs of landing and faster turnaround times, Ryanair started attaining profitability through offering cheap flights across Europe. The cheap flights were obtainable through the elimination of free meals during flights that led the company to improve their profitability in successive years. In 1997, Ryanair put on offer an IPO that managed to raise it a lot of capital that made it easier for it to acquire other aircraft thus increasing its fleet. In the year 2000, Ryanair started making its bookings online that made it increase the number of passengers that it transferred across destinations. ... Amidst intermittent performances in the year 2009, Ryanair made other strategic changes aimed at reducing costs such as elimination of check-ins in favour of baggage drops that returned it to profitability (Ryanair. n.d). With time, the company has been able to make several strides as regards profitability albeit with numerous challenges and obstacles. Currently, Ryanair is the most favoured airline in the world with bases in forty one airports operating across twenty six countries with over two hundred aircraft transporting about 80 million passengers in the year 2010/2011. As at the moment, it prides itself as having the cheapest air ticket as compared to its competitors namely easy Jet and Aer Lingus and this has contributed to its profits to grow by an average of 25% that totals about 503 million Euros. Market Entry Strategies adopted by Ryanair Ryanair embarked on adopting certain market entry strategies aimed at positioning itself as the leading low-cost flight in Europe throug h continuous improvement of its services and route offerings. Therefore its main objective was to offer low fares that can translate to increased flow of passengers that is aimed at containing the costs as well as reducing the costs of operation. Through offering low fares, Ryanair was able to stimulate demand that may be derived from those that are aimed at those that are conscious of the fares they pay or those who may opt for alternative modes of travel. To achieve this, it offers its tickets through travel on a one-way basis thus minimizing requirements that may be pegged on the basis of stay requirements. Ryanair sets fares or travel costs on the basis of demand requirements of specific flights and in reference to