Spice Jet Case AnalysisSubmitted By

33 Manika Rohra 15216 34 Simran Jena 15217 35 Sitesh Parida 1521836 Manoj Kumar 15219

37 Abhinav Khare 1522038 Neelam Kumari 15221

Vision & MissionVision:To be a low cost carrier with excellent service

and enhancing stake holders value.

Mission:India’s preferred airline with highest

consumer value through honest and ethical conduct of business.

Red Ocean StrategySpice Jet was trying to revive itself in order to

compete in the existing market (competitors being Go Air, Air Costa, Air Asia, etc).

It wanted to beat the competition by maximizing its efficiency in the following ways:Concentrating on the profitable routesFlying to international routes but did not exceed 4

hours of flying timeIt was more focused on the punctuality of its flight

and cheap air tickets in order to meet the existing demands of the consumers

It wanted to follow a low cost strategy by minimizing the unit cost so as to sustain and gain market share as they were into deep losses

Porter’s Five Forces Model

NegativesSpice-Jet plans to raise a low-cost debt of Rs

300 crore as part of recapitalisation.Adding seven and returning three leased

Boeing planes by October.SpiceJet Q1 net highest-ever at Rs 72cr.

Q1. Do you think, all the signals point to a failure of the company's strategy? IfYes, why and if not why not?

Q2) Whether Ajay Singh new leadership team will succeed or not? Justify.

Q3) Based on your analysis do you think Ajay Singh will be able to nurture Spice Jet to good health? What are your expectations of the results to beannounced for 2nd quarter of F.Y 2015-2016?

Q4) Do you think Spice Jet will be able to turn a new leaf in 2015-2016 byadopting strategy of focusing on efficiency? Even though the companywill have to battle with existing players like Indigo, Go Air, Air Asia, Jet Lite,Air Costa who pursue volumes over margins? Justify your answer

Q5) Can the new entrant Turbo Aviation with its brand TrueJet alter Spice Jetfortunes?