Competitive Business Environment

A competitive business environment is the dynamic outward system in which a business contests and operates. The competitive business is high in the context where there are numerous sellers of an alike product or services. Since, abundant number of airline companies are profound in UK so, competitive business environment is highly prevalent. There are multiple choices present for people to choose between airline services. Therefore, both Easy Jet and Ryanair Ltd are delivering their services in a highly competitive business environment. The internal and external environmental factors pose serious threat on the airline industry. The competitive business environment is determined on the basis of the market size, scope of competitive rivalry, customers, technology and innovation, product differentiation, and economies of scale. The drivers for change are the internal and external business environment. Specially, the drivers for change are rivalry among airline services provider, potential new entrants, substitute products, supplier bargaining power, and buyer bargaining power. Similarly, the major driver for change are: the growth of the internet economy, globalization, and low-cost competition. Both companies’ functions are hindered by the changes in its external environment. The political, economic, social, technological, environment, and legal factors directly impact on the airline operations. Thus, both of the companies are aware of the impact of these factors. They acquire various external environment analysis tools such as SWOT analysis and PESTEL analysis. The usages of these external environmental helps to get proper information about the competitive business environment. So, various coping strategies can be developed to reduce the negative implications of these external environmental factors. The airlines companies formulate various coping strategies to ensure that the environmental factors are understood properly through formulating the appropriate strategic plans. The airline industry exist in the perfect market competition. Therefore, there is high competitive business among the airlines companies of UK.