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Porters Five Forces and Ryanair
This force describes the intensity of competition between businesses in an industry. Industurys with a large amount of suppliers in the market can lead to competiton on prices and market share and how has a direct influence on how successful the firm is in the market.
Competition between existing players is likely to be intense when there is little differentiation in there products when the size of the industry as a low market growth or more so when the industry is diminishing and when barriers for exit are high in firms which have specialized equipment as discussed above.
For a business to survive in a very competitive marketplace firms often have only two options for increasing profitability by either reducing costs or increasing revenues or both. Cost reduction can be accomplished through more efficient channels production techniques. Sales increase can be achieved through various marketing techniques such as innovative advertising campaigns and researching the most effective form of media for advertising there products or services.
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