Create a value chain for Ryanair. Examine the extent to which Ryanairs Essay

Create a value chain for Ryanair. Examine the extent to which Ryanairs value chain represents a traditional value chain, as opposed to a revised value chain, - Essay Example These core competencies help in the creation of value chain. Porter’s traditional value chain focuses on the enterprise and its internal mechanisms and is recognized as an effective management tool for value analysis. This paper will examine how this traditional value chain differs from the revised value chain created by Deise et al., and create a value chain for Ryanair based on its core competencies. According to Porter, ‘every firm is a collection of activities that are performed to design, produce, market, deliver and support its product. All these activities can be represented using a value chain’. The porter’s model of value chain (Table I) describes generic activities undertaken by the firm to procure, transform and add value to the products and services delivered to the customer. These activities can be primary or support activities where the primary activities are concerned with the transformation of the input into output as services or after sales service. Support activities include procurement, HRM, technology and infrastructure. A firm’s value chain reflects its history, strategy, the approach to implementing the strategy and the economics of the activities themselves. In this traditional value chain each activity is an independent process and each activity sequentially adds value to the final outcome. Creating a value chain is with the objective to create a process or product that will lead to profits. Thus value chain analysis studies each link of the chain to ensure that economic value is added to it. According to Porter, adding value is a strategic means to achieve profit and competitive advantage. Traditionally different business functions perceived and created value differently but with Porter’s model each activity can be analyzed individually or collectively to asses their contribution to the enterprise. An analysis helps to eliminate the inefficient processes and add value. Mascarenhas, Kesavan and