Value Chain Analysis Of Ryanair

Introduction:

Ryanair is an Irish low fare airline which was founded and named by Ryanfamily in year 1984 with bases at Dublin and Stansted airports. Ryanair was bought into operations in the year 1985. From a small company, it has grown to a big carrier company across Europe. At first, the aircraft used to carry 15 seats from Waterford to Gatwick airport and back again for short distances. Passengers began to increase and they expanded their business from one country to another thus spreading across the whole Europe. In 1987, Michael O’Leary was appointed as tax and financial advisor of the company. In1991, the company faced a lot of losses even when the passengers for their airlines were increasing so the work was given to Michael O’Leary

Value chain analysis consists of primary activities which mainly focus on operations, inbound and outbound logistics, marketing sales and services. Inbound logistics consists of low-cost deals and compromising against promises to make businesses grow larger and bigger. Primary logistics also depend on suppliers for fuel, food, drinks, products which are duty free and paid, and the cost required for storing, handling and delivery. Inbound logistics also consists of providing satellite television, internet service, arcade game, point-to-point flights, and non-stop journeys (for avoiding cost required for connecting passengers and delays caused by connecting flights) so that the passengers can enjoy the flight trip. For outbound logistics, Ryanair makes use of isolated airports which are required for transport arrangements to customers. Using isolated and regional airports saves cost, less congestion, cheapest facilities to customers and it makes Ryanair distinguishable from its competitors (which always target big cities). It also consists of support activities which mainly focus on accounts and finance operations, old and new technology, human resources, and a good buyer-supplier relationship for better procurement services.

Resource analysis (internal analysis):

It portrays the importance of resource or capability. Tangible and intangible resources are chosen for implementation of company’s strategy. Capabilities are the skills which a company uses for carrying its resources. Ryanair’s tangible resources are their Boeing 737 airplanes and the office buildings they are using. Intangible resources consists of intellectual capital like the employees which have enough experience, skills, abilities, knowledge and experience.

Financial analysis (internal