strategy
DESCRIPTION
IndigoTRANSCRIPT
INDIGO AIRLINES
Group A2
OBJECTIVES
• Strategic Analysis- strengths and weakness of strategy, effects of external and internal environment
• Competitor Analysis- determining the current and potential competitors
EXTERNAL ANALYSIS PORTERS FIVE FORCES
Rivalryamong existing
Competitors
BargainingPower of
Buyers
Threat ofSubstituteProducts
BargainingPower ofSuppliers
Threat of New
Entrants
Threat of New Entrants
•Product Differentiation by Inflight Service, Stair Free Ramps and Q-Busters•Government Regulations: Open skies•Setup Costs•Fuel Prices•Pilots
Rivalryamong existing
Competitors
BargainingPower of
Buyers
Threat ofSubstituteProducts
BargainingPower ofSuppliers
Threat of New
Entrants
Bargaining Power of Suppliers
•Two for airplanes- Airbus and Boeing•Four suppliers of ATF: IOC, HPC, BP and ONGC•ATF drives 35-40% of costs as compared to 20-25 globally
Rivalryamong existing
Competitors
BargainingPower of
Buyers
Threat ofSubstituteProducts
BargainingPower ofSuppliers
Threat of New
Entrants
Threat of Substitute Products
•Other LCCs in the fray•Railways – Time consuming•Status symbol
Rivalryamong existing
Competitors
BargainingPower of
Buyers
Threat ofSubstituteProducts
BargainingPower ofSuppliers
Threat of New
Entrants
Bargaining Power of Buyers
•Opportunist behavior•Low switching costs•Backward integration is difficult
Rivalryamong existing
Competitors
BargainingPower of
Buyers
Threat ofSubstituteProducts
BargainingPower ofSuppliers
Threat of New
Entrants
Competitor Rivalry
•Highly competitive•Low differentiation• Imitable Strategies
INTERNAL ANALYSIS-SWOT
STRENGTHS• Only LCC to make continuous profits
• High Brand Awareness and brand equity• High service quality• Efficient Management that ensure on
time arrival• Fuel Efficient aircrafts• Short haul flights• Customer service• Cost leadership: Successful
implementation of low cost strategy• Continuous Innovations to improve non
price factors
WEAKNESS• Scope of product differentiation
is less• Too many players• Untapped domestic cargo
segment• Not present in many domestic
routes• Limited presence in International
Market• No established alliances
OPPORTUNITIES• Freight Market• Increase in domestic
market and hub• Expansion in International
Routes• Chartered Flights• Increasing middle class
population
TREATS• Increased Competition• Economic Slowdown• Government Policies• Scarcity of Trained Pilots• Rising fuel prices
COMPETITOR ANALYSIS
PASSENGER GROWTH
MARKET SHARE
IndiGo32%
SpiceJet17%
Jet Airways21%
Go Air9%
Air India20%
Air Costa1%
Air Asia1%
LOAD FACTOR
ON TIME PERFORMANCE
PASSENGER COMPLAINTS
