Case Analysis Ryanair

1074 Words5 Pages
1. Economic segment.

Economic segment that the economy affects all industries from suppliers of raw materials to manufacturers of finished goods and services as well as all organizations in the service, wholesale, retail, government and non-profit sectors. Key economic factors indicators include interest rates, unemployment rates, the Consumer Price Index, the gross domestic product and net disposable income any others. According to Ryanair company, the main problem for the company is the rate of fuel is not consistent from time to time. If the rate of fuel is not consistent from time to time, it will lead to disrupt of the Ryanair’s strategy which is low fares which set a target that the fare is low to compete with other competitors. This strategy is set up to attract the customer to have the service with Ryanair’s service. The fuel is important for the company because all of the aircraft the fuel is needed, once the fuel rate is increase the fare is automatically is high and if the fuel rate is decrease the fare is automatically is low. Then, Ryanair’s company may feel difficult to achieve their company strategy which one of the strategy is low fare because the rate of fuel is not consistent from time to time. In order the rate of fuel is unpredictable either it is increase or decrease, once the fuel price is
…show more content…
This is because Ryanair’s actively engages in fuel hedging and had exposed Ryanair to the risks of exchange rate since the price of fuel is uncertain and fluctuating. For an example, Ryanair is purchasing future fuel supplies as set price to minimize losses should prices increases. It is able to pass on fuel increases to passengers and has made commitment in its charter not to impose a fuel surcharge on any fare. This problem will affect Ryanair because higher oil prices will refuse to offer lower charges in

More about Case Analysis Ryanair

Get Access