Essay --

Main ProblemsRyanair is the leading carrier by passenger numbers and grocery capitalization in Europe by 2010. The challenges Ryanair is faced with could be split up into two areas.Macroeconomic EnvironmentThe unfavourable economic conditions in 2008 particular Ryanairs opportunity to raise fares, in the event of continued globose recession, Ryanairs passenger volume growth would be restricted Passengers would visit the spending on leisure and business travels for saving money.Also, the cost of melodic line fuel is another element would effect Ryanairs profitability. In tantrum of fact that accessibility of oil reductions, global demand increases, and the unpredictable veer rate, the Ryanair model, i.e., to be as low-cost, would be difficult for Ryanair itself.Furthermore, the controversial advertisements of Ryanair besmeared the firms reputation. Ryanair reduces it advertising costs and relying on cheap PR. Because it used a shoot down of Spanish Queen Sofia without author ity, the firm was forced to pay a comely to the Queen and made a public apology. These controversial advertisements were beneficial to the intricacy of the brand at beginning, however the offensive theme would subsequently raving mad to the companys image. Interior of RyanairThe relationship between employees and Ryanair was negative. Ryanair providing humble working(a) conditions for employees and refuse to recognise unions. According to the case study, the Irish High tourist court ruled Ryanair had bullied pilots to accept new contracts in July 2006. The pressures come from pilots over their trust for higher wage and better working conditions. In 2009, only 11 out of the 64 pilots who decided to stay with the company. Thus, Ryanair would struggle to avoid recognisin... ...ative liveliness of from nowhere to nowhere.For services of the value chain, the cost could be deliver by becoming a no frills and low fares carrier. However, the low choice services might destroy Ryana irs public reputation.Under uncomplicated activities-marketing & sales and support activities- the technology development, Ryanair spreads accommodation as well as car rentals news through its official website. In 2010, its website ranked twelfth by number of visits for e-tailers in the UK. The cost of travel agents and advertising could be kept in a minimum level. However, the heavy dependence on the official website might be a potential risk for Ryanair.As a consequence, the value chain helps Ryanair to think of itself in terms of sets of activities, to delineate its particular competitive advantages and weaknesses thus enhance value or decrease cost in value activities.