Essays on The Low-Cost Airline Model Coursework

Download full paperFile format: .doc, available for editing

The paper "The Low-Cost Airline Model" is a great example of marketing coursework. Oil price determinants are complex. However, as it is with other commodities, the demand and supply of oil in the world has a significant effect on the prices. In the supply end, the Organisation of Petroleum Exporting Countries (OPEC) acts as the main price swinger. OPEC member countries can deliberately decrease or increase oil production and supplies to influence the price of oil in the world market (World Bank 2015, p. 157). Demand also has a significant effect on oil prices.

As would be expected, a high demand against limited supply would lead to increased prices and vice versa. In the recent past, for example, Sill (2007, p. 22) indicates that the supply of oil has been higher than had been anticipated, while the demand has also been lower than was projected. Combined, the high supply and low demand have led to low oil prices. One of the contributors to increased oil supplies was the shale oil production in the US, which in 2014, accounted for an estimated one percent of the global oil supply.

Slow economic growth on the global front has also led to reduced oil demands in the same way as increased energy efficiencies, which result in oil users getting greater value from the same amount of oil compared to several years ago. The World Bank (2015, p. 158) indicates that macroeconomic factors affect oil prices in three main ways. They include slow economic activity, real income shifts, and fiscal and monetary policies. During and after the 2008/2009 economic crisis, most global economies slowed.

Because oil acts as feedstock in different sectors of the economy, the slow economic activity meant that the demand for oil declined. Deloitte (2012, p. 3) specifically indicates that global economic activity affects the demand for oil globally. Intense economic activity translates to a higher demand for oil, which theoretically leads to oil price increases, especially when supply is limited. Real income shifts have an indirect effect on the price of oil. Real income is adjusted for inflation, hence meaning that unless there are income increments in an economy, people in an economy where inflation is high will most likely spend less on consumer items (including oil).


“Transport in Cijfers” 2004, viewed 19 November 2015, .

Deloitte 2012, ‘The UK market review: crude oil’, RAC Foundation Fact Sheet, pp. 1-8.

Ecorys Transport Consultrans 2006, ‘Analysis of the impact of oil prices on the socio-economic situation in the transport sector’, European Commission, DG TREN- Final Report, Nederland BV, pp. 1-123.

Sill, K 2007, ‘The macroeconomics of oil shocks’, Business Review, no. 1, pp. 21-31.

Transport Economic & Management Systems (TEMS) 2008, ‘Impact of high oil prices in freight transportation: modal shift potential in five corridors’, Maritime Administration, US Department of Transportation, Technical Report, pp. 1-53.

World Bank 2015, Global economic prospects, January 2015: having fiscal space and using it, World Bank Publications, Washington, DC.

Centre for Aviation 2013, Ryanair SWOT analysis – Michael O’Leary maniacal focus on being the lowest cost producer, viewed 19 November 2015, .

Grunewald, E 2008, Analyses of the European air transport market: airline business models, German Aerospace Center (Dduetches Zentrum fur Luft- and Raumfahrt –DLR) Air Transport and Airport Research, pp. 1-41.

IBM 100 2011, IBM helps Ryanair develop ground-breaking kiosk technology, viewed 19 November 2015, .

Kennedy, J 2015, John Beckett, entrepreneur who built the first Ryanair website, Silicon Republic, 11 April, viewed 19 November 2015, .

Mason, K 2008, The challenge of low-cost airlines, Air transport Management Seminar, Cranfield University, 7th-11th January, Lisbon.

Paris, N 2015, ‘Ryanair to woo passengers with smartwatch technology’, Telegraph Travel, viewed 19 November 2015, .

Rae, D 2007, Entrepreneurship: from opportunity to action, Basingstoke, Hampshire, Palgrave Macmillan.

Ryanair 2015a, About us, viewed 19 November 2015, .

Ryanair 2015b, History of Ryanair, viewed 19 November 2015, .

Amstrong, M 1997, ‘Competition in telecommunications’, Oxford Review of Economic Policy, vol. 13, pp. 64-82.

Chakravarty, S 2006, ‘Determinants of cellular competition in Asia’, IIMA Working Papers, no. WP2005-06-01, pp. 1-31.

Green, EJ & Porter RH 1984, ‘Noncooperative collusion under imperfect price information’, Econometrica, vol. 52, no. 1, pp. 87-100.

Gupta, S 2011, ‘Cellular mobile in India: competition and policy’, Working Paper, no. 353, pp. 1-28.

Njuguna, VW 2012, Competitive strategies adopted by Safaricom Kenya Limited to tackle competition, unpublished thesis, University of Nairobi, Nairobi.

Sagi, G 2007, ‘The oligopolistic pricing problems – a suggested price freeze remedy’, Columbia Business Law review, vol. 269, no. 2, viewed 20 November 2015, .

Sande, AE 2014, Competitive strategies adopted by Airtel Kenya, Unpublished Thesis University of Nairobi, Nairobi.

Scherer, FM & Ross, D 1990, Industrial market structure and economic performance, 3rd ed., SAGE, London.

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