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Value Chain

Ryanair uses a value chain focused on maintaining low costs through outsourcing non-essential services, using secondary airports, homogeneous fleets, and primarily selling tickets online. It also sets dynamic pricing based on demand and offers productivity incentives to staff to maximize efficiencies. These strategies allow it to offer ultra-low fares and high profit margins.
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0% found this document useful (0 votes)
72 views2 pages

Value Chain

Ryanair uses a value chain focused on maintaining low costs through outsourcing non-essential services, using secondary airports, homogeneous fleets, and primarily selling tickets online. It also sets dynamic pricing based on demand and offers productivity incentives to staff to maximize efficiencies. These strategies allow it to offer ultra-low fares and high profit margins.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

VALUE CHAIN: RYANAIR

MAIN ACTIVITIES

INTERNAL LOGISTICS:

Reduce the need to hire additional staff.


Signing agreements with external companies responsible for baggage assistance and
passengers, ticket sales and other services.
Negotiate competitive rates and multi-year contracts.
Subcontract the more complex maintenance tasks.

OPERATIONS (PRODUCTION):

Use homogeneous fleets that allow it to limit personnel training costs and
the purchase and replacement of components. It also allows you to ensure a greater
flexibility in the scheduling of crews and teams.

EXTERNAL LOGISTICS:

Online ticket sales.


Use of secondary airports.

MARKETING AND SALES:

In Ireland and the UK, it advertises in national and regional press. It resorts to conferences of
press, advertising events, billboards, and local media. It conducts campaigns
advertising in collaboration with travel agencies and local tourist promotion venues.
In new markets, it launches campaigns in local media and its team of
sales visit bars, shopping centers, factories, offices, and universities.
Use advertising in airports, magazines, and especially on websites where
they promote their offers. Sometimes they launch viral campaigns like the tax-free flights one.
children for the greater comfort of the adult.
Its pricing policy is set according to demand per flight (70% of seats occupied is
they sell at a set rate while the rest cost more as the date of
reservation is approaching the exit

SERVICIOS

Offers non-essential services such as drinks, food, and on-board product sales or
hotel reservations and car rentals.
Sells plane and bus tickets on its planes.
It charges a fixed fee for the reservation with debit or credit card.

SUPPORT ACTIVITIES

ADMINISTRATION AND MANAGEMENT:

Customer service departments in Ireland, and it is supposed to have a department


own accountant and contracted legal advice.

SUPPLYING:

Purchase of aircraft HUMAN RESOURCES MANAGEMENT:


Salary incentives based on productivity and salary structure based on hours
of work.
Employee participation in stock options programs is encouraged.
Salary levels and labor practices and conditions are negotiated with employees.
Pilots fly more hours and cabin crew serve more passengers than in the
traditional airlines.
The crew normally sleeps at their base and saves the costs of a
overnight stay in a hotel.

TECHNOLOGICAL DEVELOPMENT:

Innovations arise both in the process and in the organization, where through
Precise studies improve the price of your product, a product different from that of the
competition, where they are the leaders.
Internet booking program (Skylight) that allows the user to make their reservation,
pay it and confirm it in real time (99% of bookings are made online).
Billing system 'Check’n’Go' that allows reducing billing time in advance
of the flights.

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