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INDIGO AIRLINES

STRATEGIC MANAGEMENT CASE STUDY


Presented by
Avishek Kumar Singh Navatha Sageli Priyadarshini Prakash Shuvankar Goutam
FOSTIIMA B-SCHOOL 3/8/2013

INTRODUCTION
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INDIGO a Gurgaon based airline company has emerged as a big challenger in India's aviation industry, taking on deep-pocketed industry leaders Jet Airways and Kingfisher Airlines.
In 2009-10 , when most airlines were in the red, Indigo announced a Rs. 550 crore profit on a turnover of Rs. 2,664 crore with a market share of 17.3% ..

FOSTIIMA B-SCHOOL

3/8/2013

How did they achieve it?

What were its core competencies, key success factors and internal strengths that lead Indigo where it is now?

FOSTIIMA B-SCHOOL

3/8/2013

AIRLINE INDUSTRY EXTERNAL ENVIRONMENT


OPPORTUNITIES:
Huge

untapped International sectors should be explored Growing demand for low cost airlines Increase the frequency of existing routes Increase of long haul aircrafts as per demand
FOSTIIMA B-SCHOOL 3/8/2013

Continued.
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THREATS:
Increase in low fare competition Fluctuating oil prices Least profitable industry losses of $4.7 billion in 2009

FOSTIIMA B-SCHOOL

3/8/2013

INDIGO AIRLINES INTERNAL STRENGTHS


Right team with well experienced leaders

like Rakesh Gangwal, Rahul Bhatia and many more. Right systems, right processes and competitive cost structures. Network built over the years.
FOSTIIMA B-SCHOOL 3/8/2013

WEAKNESSES
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Concentrated only on passenger flights - can provide services in cargo market


Few routes

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3/8/2013

CORE COMPETENCIES OF INDIGO


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Impressive on-time performance record

Lowest fare

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KEY SUCCESS FACTORS OF INDIGO


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Concentrating

on what CUSTOMER wants such as on-time departures, clean aircrafts, good and clean flying experience
On time smart moves by the company Order for 100 Airbus planes at the Paris Air show in 2005
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SUSTAINABLE COMPETITIVE ADVANTAGE


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Relied on word of mouth publicity to build a dedicated client base

Innovative ideas to sustain low fare competition Acquired prestigious hanger number 1 at the Delhi airport
FOSTIIMA B-SCHOOL 3/8/2013

POSITIONING OF INDIGO
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Started as a low fare airline


Concentrated primarily on customer wants Cut down the cost by keeping low profile advertising contrary to its high profile savvy competitors

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3/8/2013

ALTERNATIVE STRATEGIES
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Building customer relationship management through club membership program and providing discounts to regular customers Indigo is concentrating only in domestic passenger flights. However, it can also extend its services to the cargo market and chartered flights

Collection of MIS data for more precise forecasting and implementation of the strategies based on those data
FOSTIIMA B-SCHOOL 3/8/2013

PRESENT STATUS OF AIRLINE INDUSTRY


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OPPORTUNITIES: Apart from economic downturn people prefer airlines to save time
One of the major competitor Kingfisher airlines is out of the game
FOSTIIMA B-SCHOOL 3/8/2013

Continued.
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THREATS: Increasing fuel prices 25% share of Jet airlines and 50% of Board of members are acquired by Itihad which may give a strong competition to Indigo

FOSTIIMA B-SCHOOL

3/8/2013

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Thank you.
FOSTIIMA B-SCHOOL 3/8/2013