value chain Ryanair
THE VALUE CHAIN
In addition to studying the external environment characterized by threats and opportunities, it is also essential to analyze the internal environment of the company, to identified the types of activities that form the production process. An analysis tool that helps identify what are the key activities of the production process of Ryanair and which are auxiliary or complementary is the analysis of the value chain (value chain). The value chain, in fact, lets to consider the enterprise as a system of value-generating activities. This value is defined as the price that the consumer is willing to pay if the service meets and satisfies fully their needs. Within the value chain it is possible to identify a set of five primary activities that directly contribute to the final output and secondary activities that support the process.
PRIMARY ACTIVITIES
Inbound logistics
Aiming to negotiate favorable agreements with its suppliers in order to achieve the low-cost strategy.
Dependency on suppliers to deliver fuel as well as food, drinks and duty-paid products to be sold on-board; they need to be stored, handled and controlled upon delivery
Fuel surcharges are not applied following the hedging strategy
Choice of secondary airports away from urban centers of reference in order to reduce airport fees by reference to reduce airport taxes
Operations
Development of a policy to reduce costs on all fronts (no frills philosophy)
Homogeneous fleet of aircraft (Boeing 737 only) reducing the cost for training, maintenance, purchase and storage of spare parts.
Quick turn-around times for aircraft that enables high aircraft utilization
Point-to-point flights to offer direct non-stop journeys, avoiding the cost of providing through services for connecting passengers and delays caused by late arrival of connecting flights
Maximizing the number of passengers per flight
Outbound Logistics
Check-in is almost exclusively online
Choosing secondary
In addition to studying the external environment characterized by threats and opportunities, it is also essential to analyze the internal environment of the company, to identified the types of activities that form the production process. An analysis tool that helps identify what are the key activities of the production process of Ryanair and which are auxiliary or complementary is the analysis of the value chain (value chain). The value chain, in fact, lets to consider the enterprise as a system of value-generating activities. This value is defined as the price that the consumer is willing to pay if the service meets and satisfies fully their needs. Within the value chain it is possible to identify a set of five primary activities that directly contribute to the final output and secondary activities that support the process.
PRIMARY ACTIVITIES
Inbound logistics
Aiming to negotiate favorable agreements with its suppliers in order to achieve the low-cost strategy.
Dependency on suppliers to deliver fuel as well as food, drinks and duty-paid products to be sold on-board; they need to be stored, handled and controlled upon delivery
Fuel surcharges are not applied following the hedging strategy
Choice of secondary airports away from urban centers of reference in order to reduce airport fees by reference to reduce airport taxes
Operations
Development of a policy to reduce costs on all fronts (no frills philosophy)
Homogeneous fleet of aircraft (Boeing 737 only) reducing the cost for training, maintenance, purchase and storage of spare parts.
Quick turn-around times for aircraft that enables high aircraft utilization
Point-to-point flights to offer direct non-stop journeys, avoiding the cost of providing through services for connecting passengers and delays caused by late arrival of connecting flights
Maximizing the number of passengers per flight
Outbound Logistics
Check-in is almost exclusively online
Choosing secondary