PESTEL Of RYANAIR

Value chain is an important notion that highlights the role of information technology in the operations of a company. “A Value-Chain is the whole series of activities that create and build value at every step. The total value delivered by the company is the sum total of the value built up all throughout the

IntroductionThis report has been written in order to provide an environmental and competitive analysis of the low-cost airline industry sector from the position of Easyjet. It will give a brief history into Easyjet and the low-cost airline industry. It will analyse the internal strengths and weaknesses as well as the external threats and opportunities. Competitors will be analysed through the use of porters 5 forces model. Recommendations will be made for easyJet's marketing strategies for the next three years.

The PESTEL shows that the external environment mainly works into opportunities for Ryanair with some unpredictable factors that might threaten the business operation. Example of this unpredictable factor is the fuel price. The fluctuation of fuel price might work into the advantage or disadvantage of Ryanair. For Ryanair to thrive in its business operation, it ought to overcome these rampant external factors and exploit the external factors that would improve their business operation such as the EU expansion. With the EU expansion, Ryanair can expand the

Value chain analysis is a capable instrument for the organization to distinguish its important actions as having the capacity to finish competitive need and make predominant routines. The value chain has been utilized as an intense tool for management as it comprises of the various activity the company uses to produce value and its profit. (Edwards, 2002)

This article is focusing on the Ryanair case study in addition to understand the main model and values in the strategic management field. In addition, Ryanair is founded in 1985 and it’s an Irish low cost airline which has become Europe most popular aviation providers (Eleanor, 2016).

case can be broken down by addressing the following list of questions which follow a

The value chain is defined as the “full range of activities which are required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various producer services), delivery to final consumers, and final disposal after use”. Moreover, there are ranges of activities within each link of the chain. (Raphael Kaplinsky, 2000, p. 4). In addition firms usually perform value chain activities in certain ways that allows a firm the capabilities to outmatch rivals, which creates a potential source of competitive advantage. (Daniel McDermott, 2008). In the real world, of course, value chains are much more complex than this. For one thing, there tend to be many more links in the chain. The value chain can be broken down in to primary and support activities

Wang and Ahmed (2005) defined the value chain as a tactical method or tool of value-added activities that might be common in a firm. The use of this strategy instructs organizations to identify and evaluate “what its precise products are, and to determine exactly what they do. (p. 322).

Value chain analysis has proven to be a useful tool for knowing how an organization can create the greatest value for its customers. Michael Porter (1985) in his book competitive advantage states that “understanding how a business creates value are essential elements for developing a competitive advantage.” [1]. According to porter (1985) value chain is “the process view of an organization, the idea of seeing an organization as a system, made up of subsystems each with inputs, transformation processes and outputs.” [2]. Porter argued further that transforming inputs into outputs involves acquisition and consumption of resources like money, labor, materials, equipment, land, administration and management. Porter highlighted further that the way value chain activities are carried out determines costs and affects the profitability of a business. A much broader definition of a value chain is given by globalvaluechains.org, according to globalvaluechains.org; value chain is defined as the “full range of activities that firms and workers do to bring a product from its conception to its end use.” Globalvaluechains.org states further that the main activities that make up a value chain includes product design, production, marketing, distribution and support to customers. Porter divided business activities of traditional organizations into two main categories; primary activities and secondary activities. The primary activities are directly linked to transforming inputs

The value chain of a company is the entire product flow of a company beginning from its suppliers to the customers as well as managing the flow of information so that both the customers derives maximum satisfaction while at the

The idea of a value chain was first proposed by Michael Porter (1985) who identified that the more value an organization creates, the more profitable it is likely to be. Porter describes the value chain as the internal processes or series of activities a company performs “to design, produce, market, deliver and support its product” (Porter, 1985). John Shank and V. Govindarajan (1993) describe the value chain in broader terms than does Porter, affirming “the value chain for any firm is the value-creating activities all the way from basic raw material sources from component suppliers through to the ultimate end-use product delivered into the final consumers hands.”

Low price, value for money and efficiency are core values for Ryanair. Those core values should not change regardless of environmental turbulences. This means that cost reduction and other profit sources than travel fares are important factors in Ryanair’s strategy since they cannot compensate its expenditure by increasing travel fares.

The value chain works to uncover processes within processes so that the management team can identify which processes are linked together and which processes are not needed at all (Gertner, 2013). When Porter originally developed the concept of the value chain, he identified five activities that are primary within any company and four activities that support the primary activities. The five activities that are primary are operations, inbound and out bound logistics, service, and marketing and sales (Pivoda, 2014). The four support activities are, human resource management, firm infrastructure, procurement and technology development (Pivoda, 2014). All of these activities pulled together are the independent activities that are actually interdependent on one another to a company’s success (Pivoda, 2014). The value chain evaluates each of these to determine how they can be improved to better prepare the company’s future.

A value chain is a set of activities that an organization carries out to create value for its customers. Porter proposed a general-purpose value chain that companies can use to examine all of their activities, and see how they 're connected. (Mindtoolscom, 2016) The way in which vale chain activities are performed determines costs and affects profits.

A value chain is nothing but a set of activities that a firm operates to deliver a much valuable and quality product or services in the market. The term comes from Business management and was firstly coined by Mr. Michael Porter in his best seller.