Essay --

Main ProblemsRyanair is the leading carrier by passenger numbers and trade 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 continued global recession, Ryanairs passenger volume growth would be restricted Passengers would reduce the spending on leisure and business travels for saving money.Also, the cost of aviation fuel is another element would effect Ryanairs profitability. In view of fact that accessibility of vegetable oil decreases, global demand increases, and the unpredictable exchange rate, the Ryanair model, i.e., to be as low-cost, would be difficult for Ryanair itself.Furthermore, the disputed advertisements of Ryanair besmeared the firms reputation. Ryanair reduces it advertising costs and relying on sporty PR. Because it used a photograph of Spanish Queen Sofia without authority, the f irm was forced to pay a fine to the Queen and made a public apology. These controversial advertisements were beneficial to the expansion of the brand at beginning, however the offensive theme would subsequently risky to the companys image. Interior of RyanairThe relationship between employees and Ryanair was negative. Ryanair providing disgrace working conditions for employees and refuse to recognise unions. According to the case study, the Irish High Court ruled Ryanair had bullied pilots to accept new contracts in July 2006. The pressures come from pilots over their need 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 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 power destroy Ryanairs public reputation.Under primary ac tivities-marketing & sales and support activities- the technology development, Ryanair spreads accommodation as well as car rentals news with its official website. In 2010, its website ranked 12th by number of visits for e-tailers in the UK. The cost of travel agents and advertising could be kept in a negligible 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 identify its particular competitive advantages and weaknesses thus enhance value or decrease cost in value activities.