• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Q: Evaluate Flybe's chosen strategies in the light of the changes it faces

Extracts from this document...

Introduction

Flybe Q: Evaluate Flybe's chosen strategies in the light of the changes it faces (20) Flybe have announced further expansion of 3 routes, including from Belfast to Bristol, which it has taken over from Ryanair. Ryanair, along with eastJet, are the two leading competitors in the makret; Ryanair are said to to be 'the largest airline by international passenger numbers' in reference to the business review magazine. The additional flights should add strength to Flybe's UK budget airline market share. However it is unknown whether the routes are known as 'thin routes' such as the Manchester to Jersey route; 'thin routes' routes will mean Flybe's strategy of driving down unit costs will not work. The acquiring of the routes therefore will likely help Flybe's position in the UK market, by also detracting from a competitor, but would also use resources that Flybe may want to use elsewhere such as in Europe. ...read more.

Middle

However, just 35 aircraft are priced at a costly �850 million, more than four times Flybe's market valuation of �215 million; there is suggests that increased gearing brings risks, however there still appears to be a great deal of gearing required to purchase the aircraft. The purchase of the aircraft puts high financial pressure upon Flybe, and is a huge additional risk, though the purchase of new aircraft is a must to keep up with competitors. It is dependant of Flybe's competitors as to how effective the purcgase of new aircraft will be; competitors may buy more quantity and quality of aircraft than Flybe therefore being in a better position towards consumers. Flybe aims to continue growth in the companies ancillary revenues. Flybe introduced a baggage charge to its customers, helping to raise an extra average �13.12 per customers in 2011. This fee was additional to the �70 fare that Flybe charge. ...read more.

Conclusion

It is stated that for the UK Flybe has a successful business model where it aims to differentiate itself from competitors. In Europe Flybe is less well known to consumers thus it will be hard for them to reduce costs, especially with competitors likely to be being much less accommodating if Flybe go for lucrative destinations in Europe. The vast amount of larger competitors in Europe, along with Flybe's growing success in the UK, leads me to be believe Flybe shouldn't expand into Europe in the short term and focus on the UK where their business model is successful. The continuation of adding further UK routes and increasing the ancillary revenues should help Flybe improve in the UK. In the longer term, when they may have more chance to compete in the 'major price war', Flybe should then look to expand into Europe as they will likely be in a better position overall. The year 2017, where they then have the option to purchase 105 more aircraft may be a viable time to expand into Europe. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Unit 9: Marketing Strategy

    judgement as to whether a bakery in Sutton-on-Sea using my chosen marketing strategies would have been a good idea. Accuracy Due to a lack of experience and a tight time schedule I did not expect the result of my primary research in particular to be accurate.

  2. Small Business Strategies - identifying the target market, necessary skills, plans for development and ...

    most importantly the ability to close a sale or sense whether or not the consumer is not interested in making a purchase. . Administration Good administration is an integral part of an efficient and productive business. Administration deals with the accurate and efficient organisation of documents, files, business correspondence, invoices and reminders for payments etc.

  1. NETFLIX CUSTOMERS SATISFACTION

    Confirm?tion / Disconfirm?tion Er?smus ?nd Donoghue (2000) ?gree th?t in terms of the confirm?tion ?nd disconfirm?tion p?r?digm consumer satisfaction is deemed ? confirm?tion situ?tion when the product meets the expect?tions of the consumer. They ?rgue th?t consumer dissatisfaction therefore cre?tes ?

  2. PEST is a planning tool which is used by a business to evaluate and ...

    to the fact that people want to eat healthier and Ginsters is not seen as a healthy product. This will lead to Ginsters not being able to achieve this aim as they will not be selling a large proportion of their savoury products this will mean that they cannot become the savoury product leader.

  1. The Theory of Scientific Management.

    What business would it not work in? This theory would not work for catering businesses. As catering businesses employ people on a short term basis they are used to seeing different people most of the time which means they cannot socialise much.

  2. How Evans Enterprise party and wedding planners could use IT to help manage their ...

    She employed one permanent member of staff and two part-time. Along with a cleaner who came in for two hours daily except on Sundays. Along with the new premises came new equipment and dedicated Telephone and fax numbers. This was essential since the business was becoming more and more popular.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work