Essays on Energy Industry and SWOT Analysis for Ryanair Assignment

Download full paperFile format: .doc, available for editing

The paper "Energy Industry and SWOT Analysis for Ryanair " is a perfect example of a management assignment. The global energy demand has been on increase over the years. It is estimated that the world energy demand will be 50% higher than the current level. This is based on an annual growth rate of 1.6% (Filis, 2010). It is estimated that more than two-thirds of the energy demand will come from developing countries where there is high economic and population growth. Fossil fuels are the major world energy supplies and will be meeting more than 80% of the demand in this scenario (Narayan & Narayan, 2007).

The growth of natural gas demand has been driven by power generation overtaking coal. The transport sector is the single largest consumer of fuel (Yang, Hwang & Huang, 2002). The share for nuclear power has been on the marginal decline while hydropower demand remains constant. The current world energy resources have the capability to meet the growing demand. Despite this, there is a need for more oil reserves to ensure that peak production does not occur before the projected period (Narayan & Narayan, 2007). Main real-world demand and supply factors that influence the price of oil, including macroeconomic factors After four years of stability where the price per barrel was around $105, oil prices have faced a sharp decline since 2014.

Macroeconomic conditions play a major role in determining oil prices. For example, a sharp increase in oil prices is preceded by economic expansion and low real interest rates. The decrease in oil prices in some cases coincides with the global recession and high real interest rates.

This implies that monetary expansions and contractions have an effect on oil price shocks. For example, monetary expansion leads to positive oil price shocks. Monetary conditions influence demand hence prices through economic growth (Zhang, Fan, Tsai & Wei, 2008). Interest rates influence oil prices based on channels that are related to the opportunity cost of investing in real assets. The interest rates have a significant influence on the energy firms to hold their inventories (Blanchard & Gali, 2007). Also when there is a strong demand for energy and stagnant supply, the prices for oil rise.

The oil prices are based on the US dollar. A depreciation in dollar leads to an increase in demand for oil in the non-dollar regions. This makes oil less expensive using foreign currency. In some cases, dollar depreciation may lead to expansionary monetary policies in other countries.  


Barrett, S. D. 2004. “The sustainability of the Ryanair model.” International journal of transport management, Vol.2, no.2, p.89-98.

Barros, C. P., & Couto, E. 2013. “Productivity analysis of European airlines, 2000–2011.” Journal of Air Transport Management, Vol.31, no.1, p.11-13.

Bauer, P. T. 2013. West African trade: A study of competition, oligopoly and monopoly in a changing economy. Cambridge University Press.

Blanchard, O. J., & Gali, J. 2007. The Macroeconomic Effects of Oil Shocks: Why are the 2000s so different from the 1970s? (No. w13368). National Bureau of Economic Research.

Box, T. M., & Byus, K. 2005. Ryanair (2005): successful low cost leadership. In Allied Academies International Conference. International Academy for Case Studies. Proceedings (Vol. 12, No. 2, p. 9). Jordan Whitney Enterprises, Inc.

Brophy, S., & George, D. 2003. “How Ryanair has exploited the economic theory behind airline contestability and deregulation.” Student Economic Review, Vol.17, no.1, p. 245-257.

Creaton, S. 2007. Ryanair: the full story of the controversial low-cost airline. Aurum.

D’Alfonso, T., Malighetti, P., & Redondi, R. 2011. The pricing strategy of Ryanair. Airline Industry, 119.

Dickson, A., & Hartley, R. 2013. “Bilateral oligopoly and quantity competition.” Economic theory, Vol.52, no.3, p.979-1004.

Filis, G. 2010. “Macro economy, stock market and oil prices: Do meaningful relationships exist among their cyclical fluctuations?” Energy Economics, Vol.32, no.4, p.877-886.

Goettler, R. L., & Gordon, B. R. 2014. “Competition and product innovation in dynamic oligopoly.” Quantitative Marketing and Economics, Vol.12, no.1, p.1-42.

Häckner, J. 2000. “A note on price and quantity competition in differentiated oligopolies.” Journal of Economic Theory, Vol.93, no.2, p.233-239.

Huck, S., Normann, H. T., & Oechssler, J. 2000. “Does information about competitors’ actions increase or decrease competition in experimental oligopoly markets?” International Journal of Industrial Organization, Vol.18, no.1, p.39-57.

Koch, O. 2010. “Yes, we can (prohibit) The Ryanair/Aer Lingus merger before the Court.” Competition policy newsletter, Vol.3, no.1, p.41-45.

Lan, H., Lloyd, T. A., & Morgan, C. W. 2012. Price promotions and supermarket pricing: A duration analysis of UK supermarket prices. In 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil (No. 151974). International Association of Agricultural Economists.

Liski, M., & Montero, J. P. 2006. “Forward trading and collusion in oligopoly.” Journal of Economic Theory, Vol.131, no.1, p.212-230.

Malighetti, P., Paleari, S., & Redondi, R. 2009. “Pricing strategies of low-cost airlines: The Ryanair case study.” Journal of Air Transport Management, Vol.15, no.4, p.195-203.

Narayan, P. K., & Narayan, S. 2007. “Modelling oil price volatility.” Energy Policy, Vol.35, no.12, p.6549-6553.

Narayan, P. K., & Sharma, S. S. 2011. “New evidence on oil price and firm returns.” Journal of Banking & Finance, Vol.35, no.12, p.3253-3262.

Naylor, R. A. 2002. “Industry profits and competition under bilateral oligopoly.” Economics Letters, Vol.77, no.2, p.169-175.

O’Connell, J. F., & Williams, G. 2005. “Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines.” Journal of Air Transport Management, Vol.11, no.4, p.259-272.

Schiraldi, P., Smith, H., & Takahashi, Y. 2012. Estimating a dynamic game of spatial competition: The case of the UK supermarket industry. Working paper.

Wonglimpiyarat, J. 2012. “Technology strategies and standard competition—Comparative innovation cases of Apple and Microsoft.” The Journal of High Technology Management Research, Vol.23, no.2, p.90-102.

Yang, C. W., Hwang, M. J., & Huang, B. N. 2002. “An analysis of factors affecting price volatility of the US oil market.” Energy Economics, Vol.24, no.2, p.107-119.

Zhang, Y. J., Fan, Y., Tsai, H. T., & Wei, Y. M. 2008. “Spillover effect of US dollar exchange rate on oil prices.” Journal of Policy Modeling, Vol.30, no.6, p.973-991.

Download full paperFile format: .doc, available for editing
Contact Us