The Economic Environment of Business Essay Example | Topics and Well Written Essays - 3500 words

The Economic Environment of Business - Essay ExampleThis base aims at indentifying the structure in which Ryanair operates while addressing how it has adopted its market strategies to gain entry into new markets. Also the regulatory issues that it has had in regards to the existing market willing be discussed. Lastly, the paper will consider the directions it is taking in terms of international expansion, capital acquisition and challenges faced.In order to understanding the airline fabrication it is important to understand the customers first. The airlines on the other hand are customers to airline manufacturers like Boeing and Airbus (Palmer & Ponsonby 2002). The g everywherenments and the global economic structure are the other factors that highly guess the airline assembly line. It is important to appreciate however that despite the industry having many players and obstacles, it is ever growing in terms of companies expanding while others coming up. The airline business has enhanced international trade and investment for many years thereby taking a huge stake in encouraging globalization (Gregory & Marilyn 2004). This authority that many other industries in the global economy highly depend on it. The airline industry has been on a steady growth of intimately 7% for the past decade in respect to expansion moves but not necessarily profitability. However, business and touristry travel hugely increased over the same period owing to the increased liberalization of the world trade (Nigel et al. 2003). The European tourism market is shifting to Eastern Europe to destinations that were not considered for tourism there before.The IATA predicts that the airline business will grow tremendously by about 5% to 8% in the coming decade having grown at a rate of 5% this past one (Miriam 2010). However, the same body predicts that the industry will generally grow at a lower whole tone in America and Europe. The basic reason behind this arises from the fact that th ese respective industries are already fully developed.