Ryanair: Its Vulnerability and Exposure to the Macroeconomic Environment
Business vulnerability is a measure of how susceptible an organization is to external events and the possible consequential impact on its business costs and profits. In this essay, I will assess the vulnerability of Ryanair and its degree of expose to macroeconomic shocks. I will also analyse Ryanair’s performance since 2000 in comparison to its rival BA, as well as their strategies in how effective they are in raising profits and minimizing their exposure.
Ryanair is a low cost Irish airline and one of the most profitable in the airline industry. However, it can be seen as vulnerable and exposed to macroeconomic shocks. To a degree this is due to Ireland’s …show more content…
(Ryanair, 2008, p. 6)
Looking at the figures above, one can see that Ryanair charges passengers considerably lower, including no fuel surcharge. This is one for Ryanair’s USP and such low costs form a barrier for new entrants.
(Ryanair, 2008, p. 7)
With regards to consumer satisfaction, Ryanair’s service is greater than that provided by BA.
From above, one can see that Ryanair have the second largest number of active aircraft behind BA. Nevertheless, if the average age of the fleet is taken into account, Ryanair has one of the largest young fleet.
However, one can’t disregard the different sizes of the two firms. Since British Airways is a larger firm compared to Ryanair and offers different services, as well as owning a larger fleet of aircrafts, it may be more greatly exposed to the external environment.
To be able