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AIRPORT VALUE CHAIN ESSAYS

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Contents:

Insert/edit link What is Value Chain Analysis? Airport Value Chain 2 Ryanair
Airlines



An organization can aim to control these cost drivers in order to improve
efficiency, add value, and differentiate. Value chain analysis is more than a
straightforward cost-to-profit model. It expands on the principles of economies
of scale and capacity. There are limits to lowering costs and increasing
capacity that can inhibit business growth. Value chain analysis stresses that
competitive differentiation can also focus on the perceived value to the
customer that justifies a product's price tag.

Finding these perceived values could mean the difference between getting a
consumer to spend three dollars on a cup of Starbuck's coffee rather than one
dollar on a competitor's discount brand. The management and analysis of value
chains are becoming both industry specific and increasingly global, taking into
account fast-changing markets, adjustments necessitated by new technologies,
delivery methods, trade and government involvement, and fast-paced and fickle
consumer demands.

Add to that the global value chain's emphasis on sustainability, as well as its
goal to expand the economic prospects of the world's poorest nations by
fostering partnerships especially in the agri-business sector. The reason for
this continued success is that Porter's framework is, first and foremost, a
general model.

It is not meant to be a standalone, rigid framework that creates barriers
between functions or gives equal weight to every task that brings a product or
service to market. Various departments, including human resources, marketing,
sales, and operations utilize value chain analysis. Similarly, a wide variety of
industries such as enterprise, manufacturing, retail, service, and technology,
in addition to governments and their agencies, successfully adapt the basic
value chain concept, and understand that not all functions or activities need to
receive the same level of scrutiny.

For example, the Department of Defense DOD has a design-chain operations
reference DCOR that cites little need to spend time or resources analyzing
marketing and sales activities in their overall value chain. Therefore, the
first order of any value chain strategy is to identify the important tasks and
functions necessary to deliver your product or service. Once you identify value
activities, you can then focus analysis on where you can add value and discover
areas for optimization, differentiation, or cost efficiency.

For now and into the near future, value chains are a useful management strategy
for many different industries. Companies like FedEx see the future as a circular
chain that values renewability. The World Bank, the United Nations Conference on
Trade Development, and the International Crops Institute for the Semi-Arid
Tropics all use global value chains to foster international cooperation to
assist the world's poorest countries.

Companies that depend on global resources are developing initiatives to support
global value chains by working with governments, United Nations partners, and
economic aid organizations. A number of companies create partnerships to provide
opportunities for overseas development assistance through the development of
agri-food value chains, such as those in the macadamia industry in Kenya, the
sweet sorghum by-products in India, and the seed nut harvests in Uganda.

These initiatives advocate a greatly expanded view of the value chain called
collaborative value networks. For extensive strategies and actionable guidance
to support or begin a process of value chain management, consult Michael
Porter's book, Competitive Advantage. Many present industry-specific insight,
models, and assistance. For example, approaches that focus on discovering cost
advantages and disadvantages include:.

Political factors.


INSERT/EDIT LINK

Value chain introduction. Air transport continues to create tremendous value for
its users, passengers, shippers, and others in the value Value chain analysis.
The value chain is a set of activities that an organization in a specific
industry These include aircraft manufacturers, food service companies, airports,
local.

Economical factors. Sociocultural factors. Technology factors. Doha Qatar
airport. Dubai airport.

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Sheremetyevo airport. Almaty airport. Opportunities and threats. SWOT and risk
analysis. Customer profile.


WHAT IS VALUE CHAIN ANALYSIS?

Customer segmentation. Product definition. Marketing MIX. The resource-based
perspective views a firm as an organization that has a bundle of protective
resources and capabilities. Resources are tangible and intangible assets a firm
uses to choose and implement its strategies. Capabilities are the skills a firm
uses to bring its resources to bear. Part of the tangible resources also are all
of the supplies, food, drinks and duty-paid products company holds in inventory,
as well as fuel.

Intangible resources contain bigger part of the business.


AIRPORT VALUE CHAIN 2

They include all the intellectual capital, like expertise and accumulated
knowledge, experience, skills, abilities and talents that every employee in
Rayanair possesses. The lowest airfare rates, simple processes no frills , large
brand awareness, clear offer focuses on particular market segment , the
innovative strategies on cost cutting, and quick turnaround time.

The company ability to bargain and get beneficial deals with suppliers; the
efficiency and high turn-around rate, fast luggage handling and high
punctuality. Ryanair Holdings PLC, From this financial analysis, I could
conclude that costs are increasing, but profit is also increasing leading to
gains in the company. Strengths and weaknesses are the major internal
characteristics of firms, derived from the SWOT analysis. Firms within an
industry generally have different strengths and weaknesses, and those
differences often have a strong bearing on which firms win competitive
interactions.

Eliminates the need of travel agents. Modernized fleet which leads to less
expensive maintenance: Will become more uniform with only one model Boeing ,
also newer planes will require less maintenance. High aircraft utilization:
Ryanair flies its planes for longer thus generating more revenue from its
assets. Prone to bad press: Rayanair is perceived as arrogant and the slightest
incident with the scandal commercial gets a lot of press coverage.

Distance of some regional airports from advertised destination: Over time
customers may find this a big inconvenience.


RYANAIR AIRLINES

Poor service: Ryanair decreased the number of flight attendants per flight,
which decreased the service quality. In conclusion I would like briefly to
summarize the strengths and weaknesses I mentioned above. One technique
developed to aid the process of allocating costs to the appropriate value chain
activities cost is activity-based costing ABC. The third one is to develop
sustainable competitive advantage.

Firms achieve a competitive advantage by managing the value chain better than
other firms in their industry.

Managing the value chain implies increasing the quality of products and
services, while reducing the firm's costs and increasing revenue, thus
increasing competitive advantage. In controlling costs in a value chain,
managers try to answer the questions given below. Costs for an activity can be
reduced only if the reduction does not adversely affect strategic advantage. The
bottom line about internal value chain analysis makes one thing clear that value
chain activities are interrelated, and no activity should be managed
independently without considering its impact on all other activities.

Findings from the analysis of Ajax Airlines Financial Statement In this case
determines the difference between the traditional management analysis and the
value change analysis. It also shows two different pictures in the same
situation of this company by using these two different analyses. Ajax Airlines
used few sets of information and based on these information Exhibit: 2, 3, and 4
for traditional management analysis and Exhibit: 5 for value chain analysis well
be used to evaluate the findings.

In the exhibit: 2, it clearly tells very good and strong position about the
company, but which is not enough.

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It does not show anything about the value chain activities. How and where it got
those figure and what is their strategy- these answers are missing. On the other
hand, financial leverage remains constants and they are also holding financial
risk constant, which is very good for the company. Again it fails to provide all
others supporting information and their strategy. Exhibit: 4, the company
provides some additional information, but still they are ignoring the value
chain, as a result of that they could not indentify the high fixed cost.

Thus, here it shows that they charged more for each seat mile flown left behind
improving utilisation of the available seat miles. It creates more conflicts by
finding that asset utilisation remained constant in exhibit-4 and in exhibit -3
shows it improved.

A value chain analysis shows in exhibit- 5 that Ajax has heavily invested in
ticketing and reservations- this gives an idea that what strategy they are
following. Its also shows that operating an aircraft is not fully a fixed cost,
as it shown in the exhibit

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