Ryanair's globalisation process Essay Example | Topics and Well Written Essays - 2000 words

Ryanair's globalisation process - Essay Example However, new markets come with more challenges in some cases leading to losses to the firm (GOLDMAN & NIEUWENHUIZEN 2006, p.9). Therefore, proper evaluation of the market has to be undertaken to ensure higher chances of success in the new market. Opening up of markets also means a new challenge to the existing market leaders as they are faced with new competition thus the need to change strategy. Changes in regulation also affect the operation of firms in the market thus the need to regularly check regulations to ensure compliance (LOWENDAHL 2005, p.163). At times, the firm may be forced to get back to the drawing board to formulate new way forward so as to be profitable in the global market. Any business desiring to compete in the global market has to make the bold decision of taking on a risky investment (SHETH, PARVATIYAR & SHAINESH, 2001, p.34). In the process of globalization, signing of agreement between Ire and London to open up air traffic between them was the beginning of globalization process in the two countries presenting Ryanair an opportunity to explore new market. In anticipation of increased air traffic between Irish and London, Ryanair made the bold decision of applying for the newly available license to be given to a second firm after the signing of the new air service agreement. Without any past records on the success of the rout in air traffic, applying for the license to operate the route was risky as returns were not assured. Other firms not applying for the license is an indication that there was general fear of investing in new markets. The opportunity came with additional cost requiring additional resources. This is the cost of globalization that the firm had to incur so as to earn revenue from the new investment. The firm incurred cost of purchasing two more planes to satisfy the increasing operations. Increased competition in the market place is also forcing big firms to change their operations to maintain their market