One of the most important incentives behind any business succeeding is to make sure they give all consumers what they want, and to be even more successful give them what they want where they want it and that is the difference and without a doubt there main reason why global businesses are more successful than one-nation ones because even though both can give customers what they want, global organisations can give customers what they want anywhere around the world and the is the difference.
Recently more so than ever, the market for many products is worldwide and that is why so many businesses today want to gain international status to make sure their product/service do not fall behind similar products in the same market. Obtaining an international presence has allowed RyanAir and British Airways to explore many different markets across a global scale and analyse which of those seen would most suit and give their service (flights) being offered the most chance of success. Seeing a gap in the market
One of the main attributes of having a good business brain is being able to spot a gap in the market and being able to take full advantage. Many UK based companies
Need essay sample on "Different Markets"? We will write a custom essay sample specifically for you for only $ 13.90/page
An example of this could be RyanAir, RyanAir had a very promising first 3 years having being able to obtain around 21/2 million passengers – however to continue this early success and fulfil their potential: it would have made more sense to choose a gap in the market which includes growing economies where demand for flights where rife (which I’m sure they did). Along with this, they would have to consider whether this suits their aims & objectives.
For example, one of RyanAir’s aims has always been to be established as Europe’s leading low fare, so in order to achieve this, a suitable action would be to dominate flights from the more recognised EU nations such as Spain, Portugal, Italy, France where their work would be most recognised and once they have been dominated, spend time on the small European countries such as Bosnia, Albania and San Marino. Protecting their market share
One of the differences between businesses with a local presence and businesses with an international presence is that local businesses only have one market to compete in, the national market (BA – England, RA – Ireland) they are involved in whilst international businesses have their own national market and the global market and this could be a factor into why so many business owners decide to experiment globally.
Because the UK has such a massive economy and is a 1ST world nation, it will also be difficult for any type of product/service brand to dominate their market because it the UK, there will always be massive competition regardless of the business type. For this reason, so many companies are tempted to spread into other nations where the competition may not be as high in order to protect their overall market share as opposed to their British one just as British Airways and RyanAir have done.
For example, if British Airways only operated in the UK and they began to have a rapid fall in market share in the field they work, that is a rapid fall in their whole market share and that would be a very dangerous situation to be in, in regards to the security of future of the business itself. However, because British Airways work in some many other countries such as Russia, USA, India, South Africa, Canada, Brazil, etc. this means their overall market share is much more protected.
This is because before their success was solely dependant on their efforts in the UK, but now their overall market share is split and divided upon so many nations, the percentage of risk is far lowered. This means that even if their market share did begin to decline in the UK, this damage could be repaired by the success available in all the other countries they operate in and this gives their overall market a much more secure outlook, which gives the business as a whole a much more secure outlook.