International business Essay Example | Topics and Well Written Essays - 2500 words - 4

International business - Essay Example Their expectation is that these additional aircraft will allow Ryanair to double in size to over 84 million passengers each year by 2012. Moreover, Ryanair currently employs a team of 4,200 people, comprising over 25 different nationalities (About Ryanair). Ryanair’s competitive strategy is quite simple. The company offers the lowest fares of any airline operating in Europe. The firm has succeeded by holding its average fare below â‚ ¬50, which is about a third lower than even EasyJet’s, its strongest low-price competitor. The company sells seats on a one-way basis. Fares are set on the basis of demand for particular flights and by reference to the period remaining to the date of departure of the flights; higher fares are charged on flights with higher levels of demand made nearer to the date of departure. The secret of Ryanair’s success in their business could be drawn out of how they were able to narrow the value network by eliminating non core activities and to shorten the value network by eliminating processes that are part of the value chain. The company’s aircraft handling, ticketing and other services at certain airports are handled by third party contractors, which is Servisair. The company has its own internet booking facility and reservation centre, and generates the majority of its sales through direct selling (through website and telephone reservations). Ryanair also provides various ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services; in-flight sale of beverages, food and merchandise; and internet-related services. As part of its non-flight scheduled and internet-related services, Ryanair offers accommodation services, car rentals, rail tickets, and travel insurance through both its website and its traditional telephone reservation