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Old 23rd Jun 2008, 11:45
  #116 (permalink)  
Re-Heat
 
Join Date: Dec 1999
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How come Tesco and their ilk can make profits to cover fancy developments,car-parking, etc. whilst the small corner-store goes bust????

VOLUME! Ryanair is the " Aldi" or" Lidl " of the airline-business.
No, it is efficiency. You confuse scale efficiencies with large businesses per se. You cannot multiply a loss-making business by a factor of 10, as that would compound the loss.

Ryanair operates efficiently at all levels - being large per se does not particularly deliver the profit margin except to the extent of scale marketing and the website; Tesco utilises mass savings on fuel, transportation, purchasing etc to deliver higher margins than the corner shop - something it could only do with size.

The Elitists should pull their head out of the sand....the world has moved on and the "Orient-Eexpess" era has gone,for good.
However, proven marketing theory says there is space for both. Hence those who swear never to fly Ryanair, and pay for BA every time.
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