Essay --

Main ProblemsRyanair is the leading carrier by passenger total and market capitalization in Europe by 2010. The challenges Ryanair is faced with could be divided into two areas.Macroeconomic EnvironmentThe unfavourable economic conditions in 2008 limited Ryanairs opportunity to raise fares, in the event of keep global recession, Ryanairs passenger volume growth would be curb Passengers would reduce the spending on leisure and business travels for saving money.Also, the be of aviation fuel is another element would effect Ryanairs profitability. In view of fact that accessibility of oil decreases, global demand increases, and the irregular exchange rate, the Ryanair model, i.e., to be as scummy-cost, would be difficult for Ryanair itself.Furthermore, the contr everywheresial advertisements of Ryanair besmeared the debaucheds reputation. Ryanair reduces it publicize costs and relying on cheap PR. Because it used a photograph of Spanish Queen Sofia without authority, the firm was forced to pay a fine to the Queen and made a public apology. These controversial advertisements were advantageous to the expansion of the brand at beginning, however the offensive theme would by and by assayy to the companys image. Interior of RyanairThe relationship between employees and Ryanair was negative. Ryanair providing modify working conditions for employees and refuse to recognise unions. According to the case study, the Irish graduate(prenominal) Court ruled Ryanair had bullied pilots to accept new contracts in July 2006. The pressures come from pilots over their desire for higher wage and better working conditions. In 2009, solitary(prenominal) 11 out of the 64 pilots who decided to stay with the company. Thus, Ryanair would struggle to negate recognisin... ...ative feeling of from nowhere to nowhere.For services of the value chain, the cost could be saved by becoming a no frills and low fares carrier. However, the low quality services might destroy Ryanairs publ ic reputation. on a lower floor primary activities-marketing & sales and support activities- the technology development, Ryanair spreads accommodation as healthy as car rentals news through its official website. In 2010, its website bedded 12th 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 habituation on the official website might be a potential risk for Ryanair.As a consequence, the value chain helps Ryanair to think of itself in basis of sets of activities, to identify its particular competitive advantages and weaknesses thus enhance value or decrease cost in value activities.