Ryanair Value Chain Analysis

830 Words 4 Pages
a) Operation
Ryanair focusing on the low cost of operating, as they one of airlines company that offer low fares than competitors. In order to minimize the cost of operation, Ryanair using a single model of aircraft (the Boeing 737-800) which may help to reduce training cost, maintenance cost, purchase and storage of the spare part of the aircraft. Since these types of aircraft models are widely used the schedule of flight crews become more flexible. Thus, Ryanair can easily recruit the flight crew especially the pilot as most of them are familiar with handling these types of aircraft model. Other than that, Ryanair is purchasing a large number of aircraft from Boeing which they may negotiate the price. This is to ensure Ryanair is able to
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Ryanair also may follow competitor’s strategy and add more value-added activities in their operations. For example, Air Asia airlines have alliances with others low-cost airlines like Virgin Blue Airlines. Through this joint venture, both companies will enjoy different benefits align with their companies’ objective. Air Asia airlines one of world famous low-cost airlines with the aims of cost saving, while Virgin Blue Airlines aim to expand their business to South East …show more content…
As this is one of free marketing strategy that can create the awareness among the public which can boost the sales. Ryanair are make use of technology by using internet as a medium to communicate with customers. This method not only fast and it’s not required large amount of money when to be implement. Online sales not only can help acquire customers more efficiently, but also can reduce the time spend in fills the seat offer for each flight. In other hands, the effectiveness of management in handling the marketing and sales division by influencing consumers help Ryanair to ensure their sales is always in consistent trends even though they are offering low ticket

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