Indigo Airline.pptx

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    INDIGO AIRLINE

    Founded 2005

    Commenced operations August 2006

    Company slogan Ours punctuality yours destination

    Web site www.goindigo.in

    Market sare 2!"

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    MANAGEMENT HEAD OF INDIGO

    AIRLINE

    Aditya #os$ %resident &aul'atia$M(

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    )*+*O, - M*++*O,

    Mission

    /o proide 1uality and reliable air trael acilities to

    young $ price conscious$ irst time traelers.

    )ision

    /o be *ndia3s largest and astest growing airline

    troug tree tings aordable ares$ on4time

    perormance and assle4ree trael eperience

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    COMPETITORS

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    PESTAL FRAMEWORK

    /is model proposes tat te releant actors sould be diided into te

    political$ economic$ social$ tecnological and enironment.

    %O*/*CA

    7. Open sky policy and deregulation ae impact.

    2. 89" F(* is permissible in domestic airlines under te 700" e1uity

    ownersip by ,&* permitted.

    :. Airport *nrastructure Mumbai and (eli airports ae already beenpriati;ed and are being upgraded at estimated inestment.

    8. Oer te net 5 years$ AA*:.0! billion 8:" o wic will be or te tree metro

    airports in ?olkata$ Cennai$ /riandrum and rest will go into non metro

    airport.

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    @CO,OM*C

    7. /e rising income o *ndian will see a rise in air traellers.2. %eriods o economic stagnation see a signiicant slowing o

    te rate o increase in demand.

    . +OC*A

    7. Cange in liestyle te canging demograpy ae proound

    eect on marketing strategies o te airlines.

    2. /e *ndian population is going troug transition pase.

    :. +tatus symbol to trael in planes.

    8. /e ig percentage o yout coupled wit increasing ob

    aenues certainty ints at growing income and aspiration.

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    /@CB,OO#*CA

    7. #rowt o e4commerce and e4ticketing internet as enabled to proide real time

    inormation o ligt scedules and aailability.

    2. Moderni;ation and %riati;ation o airport4te CA/ tecnology employed ininternational airports o te country as elped te pilots to take4o and more in een

    during te low isibility ours.

    . @,)*&O,M@,/

    7. *ncrease te global warming.

    2. +udden and unepected beaiour o atmospere and te dependency on atmospere.

    :. +ortage o inrastrural capacity.

    . @#A

    7. F(* limits.

    2. 'ilateral +trategies.

    :. Airlines ac1uisition and leasing costs.

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    SWOT ANALYSIS

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    PORTERS FIVE FORCESSTRATEGY FOR AIRLINE

    INDUSTRY

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    SUPPLIERS

    Indigo feet comprise o Airbs!A"#$ %nd t&e

    s'itc&ing cost is &ig& de to t&e (imited nmbero spp(iers)

    T&e br%nd *%(e o spp(iers is &ig& de to t&eir(ess no) %nd res(ts in &ig&er b%rg%ining po'er ort&em)

    BUYERS

    'uyers in airlines industries is large in no. and igly

    ragmented $tus lowering teir power wit te growing

    *ndian economy - increasing low cost carriers$ buyers ae

    increased - so ae te growt opportunities.

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    THREAT OF NEW ENTRANTS

    %roduct dierentiation ow cost carrier

    +witcing cost *ts not Big. #ot. &egulation 89" F(*$700" to ,&* inestment$ Open

    sky policy.

    +et up cost Big$ during peak season leased aircrat or

    surplus gien on lease. Fuel %rice *ncreasing

    &ecourse %oor training$ labour orce costly.

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    COMPETITIVE RIVALRY

    +uppliers o aircrats are te same ..i.e. 'oeing and

    Airbus . Bence suppliers bargaining power is ig.

    )ery little scope or dierentiation between competitors

    product - serices.

    AVAILABLITY OF SUBSTITUTES Many customers use airlines as a status symbol. +o$

    trains cannot substitute prestige . +o i we consider indigo

    airlines $ te direct substitutes are te oter low cost

    carrier like spice et and #o air..so in tis case $ treat osubstitutes is ig as te switcing cost between low cost

    carrier is low.

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    E+tern%( F%ctor E*%(%tion ,EFE- M%tri+

    /reats posed by te eternal enironmental actors suc as

    economic$ social$ cultural$ demograpic$ enironmental$

    political$ goernmental$ legal$ tecnological$ and competitie

    inormation

    @

    Factor Weigtage

    Maor /reat 42

    Minor /reat 47

    Minor Opportunity D7

    Maor Opportunity D2

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    SR.NO.

    KEY EXTERNAL FACTOR WEIGHTAGE

    RATING

    WEIGHTATED SCORE

    . Incre%se t&e g(ob%( '%rming) $)#/ !# !$)/

    # S&ort%ge o inr%strr%( c%p%cit0 $)./ !. !$)./" T&e rising income o Indi%n 'i(( see

    % rise in %ir tr%*e((ers)$). . $).

    1 2ro't& o e!commerce %nd e!tic3eting internet &%s en%b(ed topro*ide re%( time inorm%tion ofig&t sc&ed(es %nd %*%i(%bi(it0)

    $)./ . $)./

    / O*er t&e ne+t / 0e%rs4 t&e t&reemetro %irports in Ko(3%t%4 5&enn%i4Tri*%ndrm %nd rest 'i(( go into nonmetro %irport)

    $)#/ # $)./

    6 5&%nge in (iest0(e t&e c&%ngingdemogr%p&0 &%*e proond e7ecton m%r3eting str%tegies o t&e%ir(ines)

    $). . $).

    TOTAL WEIGHTATED SCORE . !$)./

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    5onc(sion

    *t is obsered rom te eibit tat te company as scored

    D0.25 wic is well aboe D0.70

    /ereore$ it can be concluded tat te company as a strong

    eternal strategic position.

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    5ompetiti*e Pro8(e M%tri+ ,5PM-

    C%M identiies a irms maor competitors and teir strengts

    and weaknesses in relation to a irms strategic

    positions.

    *t *ncludes

    7. Critical success actors

    2. relatie importance o actor to success in industry:. companys strengtEweakness regarding eac success actor

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    CPM IN INDIGO & SPICE JET

    *ndigo +pice et

    'ased on *ndia *ndia

    /ype o Airlines *nternational *nternational

    ,umber o (estination :6D 58D

    Continents +ered Asia Asia

    Bubs 'ombayCalcutta(eli

    'angalore'ombay(eliBakimpetMadras

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    Indigo Spic !"

    On time perormance

    On time 700" 7.9!"

    75429 min ate 4 !.:"

    :0488 min late 4 :"

    More tan 85 min ate 4 !.27"

    (ierted 4 0"

    Cancelled 4 9.:!"

    Fre1uent Flyer %rogram 4 +piceetMAG

    Airline %artners 4 utansa

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    *ndigo +pice et

    Carry On +pecial FoodMobility or Assistie(eice+troller

    Food

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    Indigo Spice 9et

    Aerage Age o Fleet 2. yrs 8.5 yrs

    Fleet +i;e ! 56

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    CONCLUSION

    'ot te competitors are ery strong

    'ut *ndigo is proiding better acilities tan +pice Jet

    *ndigo runs on te On4/ime %erormance wereas +pice et

    ails to delier tis acility sometimes.

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