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StrategicmanagementPresentation
Welcome to Indigo Airlines
Submittedby:
Abinav Kumar
Indra Jain
Ivy Chakraborty
Ruma halder
INDIANAVIATIONINDUSTRY
 The Indian aviation industry is one of the fastest growing aviation
industries in the world.
 India ranks fourth after US, China and Japan in terms of domestic
passengers volume.
 The domestic aviation sector is expected to grow at a rate of 9-10
per cent to reach a level of 150-180 million passengers by 2020.
 Aviation Industry in India holds around 69% of the total share of the
airlines traffic in the region of South Asia By 2020, Indian airports are
estimated to handle: 100 million passengers Including 60 million
domestic passengers Cargo in the range of 3.4 million tonnes per
annum
Company Information
• Parent company-Inter Globe Enterprises
• Sector-Airlines Tagline/Slogan-Go India
• Segment-Cost Conscious Passenger
• Target group-Lower Middle class/Middle class
Location
Indigo route map
Introduction
• IndiGo is India’s largest passenger airline with a market
share of 38.5% as of May, 2016. IndiGo is a Low cost
airlines, headquartered at Gurgaon,Haryana, India.
• The airline was founded as a private company, by Rahul
Bhatia of InterGlobe Enterprises; and Rakesh Gangwal,
a United States-based expatriate Indian; in 2006.
• Since thier inception in August 2006,they have grown
from a carrier with one plane to a fleet of 131 aircraft
today. A single aircraft type, high operational reliability
and an award winning service make us one of the most
reliable airlines in the world. We currently operate
flights connecting to 46 destinations – 39 domestic and
6 international.
PESTLE ANALYSIS
Political Factor:
 Open sky policy _____(+)
 Low Entry Barriers ___(+)
 FDI limits __________(+)
• 49% for airlines
• 100% for airport
Economic Factor:
 Growing income of middle class _____(+)
 Consistent GDP Growth ____________(+)
 Increase of average income _________(+)
 Growth in Tourism ________________(+)
 Rising ATF Price ___________________(-)
Cont…….
Social Factor:
 Growing Middle Class __________(+)
 Domestic Lesiure Travel_________(+)
 Foreign Tourist ________________(+)
 Status Symbol _________________(+)
 Security issues & terrorism _______(-)
Technological Factor:
 Modernized Airports ___________(+)
 Better handling of Aircrafts,
Passengers & Cargo _______________(+)
 Video-conferencing ______________(-)
External Analysis- Five Forces Model
Competitiv
e rivalry
Threat of
new entry
Bargaining
power of
Customer
Threat of
Substitutes
Bargaining
Power of
Suppliers
Threat of new
entrants
 Product differentiation
 Switching cost
 Government regulations
 Setup Costs
 Fuel Prices
 Resource
Bargaining Power of
Suppliers
 Duopoly in aircraft market
 Switch cost to other suppliers is
high
 Shortage of Commercial Pilots in
India
 Limited Suppliers of ATF in India
Bargaining Power of buyers
 High number of buyers
fragmented- lowers their power
 With high number of buyers,
growth opportunities are also
high.
Competitive Rivalry
 Very little product differentiation
in Services
 Mature Industry- Only scope for
growth by gaining other people’s
market share
 High bargaining power of
suppliers
 No sense of brand royalty
amongst customers and can easily
switch to other airlines
Threat Of Substitutes
 Indirect Substitutes are railways-
but not powerful as airlines, score
highly in travel time
 However direct substitutes are
other Low Cost Carriers –since
switch cost is low, threat of
substitutes is high
Strategic
orientation
Defender
(INDIGO)
Prospectors
(JET AIRWAYS)
Analyzers
(VISTARA)
Reactors
(AIR INDIA)
Strategic Orientation
INTERNAL
ANALYSIS
Resources
Capabilities
Core
competencies
Competitive
Advantage
Resources
Tangible Intangible
Tangible resources
Aircraft Fuel Human
Resource
Intangible resources
Brand
Equity/Reputation
Social Capital
Brand Awareness Employee
Relationship
Core Competencies ( VRIO Framework)
Recourse &
competencies
Values Rarity Imitability Organization
Low Fares Yes Yes No Yes
Single type of
Aircraft
Yes Yes Yes Yes
Turn around time Yes No Yes Yes
Brand Name Yes Yes Yes Yes
Strategy
 One type of airplane –brand-new
Airbus A320
 One type of fare-low
 One type of customer services-
professional
 One way to deal with delays and
cancellations-honesty
 Go local-connect with the middle
class
 Focus on core competencies
 Synergies in offering value added
services-Holiday packages/visa
services
Position in BCG matrix
premium services
like Indigo CarGo,
Indigo
Experience
No-frill segment
with no meal and
no entertainment
options
Pricing strategies
• Low cost and high quality of service
• Price to be differentiated with
respect to days before the travel.
• High seating density and load factor
• Being a low-cost carrier, none of
Indigo's flights have Business class or
First class sections. It offers only
Economy class seating.
• To keep fares low, Indigo does not
provide complimentary meals in any
of its flights, though it does have a
buy-on board in flight meal
programme.
• Targeting segments locally based on
seasons and festivals
Advertisement
Strategy
 Hoarding at airports.
 Social networking medium-
Facebook, Twitter, YouTube
 Multi- storied building and
offices.
 Magazines.
 Sponsoring fashion shows, talent
hunts, new year parties etc.
STRATEGIC
OBJECTIVES
 Increase number of destinations /
frequencies served resulting in
market leadership
 Top/ of the mind brand in Indian
aviation industry for AFFORDABLE
QUALITY SERVICES
 MARKET LEADER in terms of share
in the travel industry
 Introduce and sustain business
travel segment for cost conscious
and young professionals
Competitors
www.goindigo.com
Address
Banglore
G17/20, Richmond Towers,12
Richmond Road, Bangalore-560025
Tel:080-22219810, 22219820,22126879
CHENNAI
144/145, Malavika Center,
Kodambakkam High Road,
Nungambakkam Chennai – 600034
Tel : 044-65272262, 65272272
DELHI - NCR ( GURGAON)
Level -3, Tower-C, Global Business
Park,12, M.G. Road, Gurgaon – 122002
Tel :0124: 4352500
Goa
City Business Centre, Coelho
Pereira , Opp. The Jumma Majod,
Dada Vaidya Road, Panjim, Goa -
403001, Tel : 0832- 2235115
Thank
You

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Indigo airlines

  • 1. StrategicmanagementPresentation Welcome to Indigo Airlines Submittedby: Abinav Kumar Indra Jain Ivy Chakraborty Ruma halder
  • 2. INDIANAVIATIONINDUSTRY  The Indian aviation industry is one of the fastest growing aviation industries in the world.  India ranks fourth after US, China and Japan in terms of domestic passengers volume.  The domestic aviation sector is expected to grow at a rate of 9-10 per cent to reach a level of 150-180 million passengers by 2020.  Aviation Industry in India holds around 69% of the total share of the airlines traffic in the region of South Asia By 2020, Indian airports are estimated to handle: 100 million passengers Including 60 million domestic passengers Cargo in the range of 3.4 million tonnes per annum
  • 3. Company Information • Parent company-Inter Globe Enterprises • Sector-Airlines Tagline/Slogan-Go India • Segment-Cost Conscious Passenger • Target group-Lower Middle class/Middle class
  • 6. Introduction • IndiGo is India’s largest passenger airline with a market share of 38.5% as of May, 2016. IndiGo is a Low cost airlines, headquartered at Gurgaon,Haryana, India. • The airline was founded as a private company, by Rahul Bhatia of InterGlobe Enterprises; and Rakesh Gangwal, a United States-based expatriate Indian; in 2006. • Since thier inception in August 2006,they have grown from a carrier with one plane to a fleet of 131 aircraft today. A single aircraft type, high operational reliability and an award winning service make us one of the most reliable airlines in the world. We currently operate flights connecting to 46 destinations – 39 domestic and 6 international.
  • 7. PESTLE ANALYSIS Political Factor:  Open sky policy _____(+)  Low Entry Barriers ___(+)  FDI limits __________(+) • 49% for airlines • 100% for airport Economic Factor:  Growing income of middle class _____(+)  Consistent GDP Growth ____________(+)  Increase of average income _________(+)  Growth in Tourism ________________(+)  Rising ATF Price ___________________(-)
  • 8. Cont……. Social Factor:  Growing Middle Class __________(+)  Domestic Lesiure Travel_________(+)  Foreign Tourist ________________(+)  Status Symbol _________________(+)  Security issues & terrorism _______(-) Technological Factor:  Modernized Airports ___________(+)  Better handling of Aircrafts, Passengers & Cargo _______________(+)  Video-conferencing ______________(-)
  • 9. External Analysis- Five Forces Model Competitiv e rivalry Threat of new entry Bargaining power of Customer Threat of Substitutes Bargaining Power of Suppliers
  • 10. Threat of new entrants  Product differentiation  Switching cost  Government regulations  Setup Costs  Fuel Prices  Resource
  • 11. Bargaining Power of Suppliers  Duopoly in aircraft market  Switch cost to other suppliers is high  Shortage of Commercial Pilots in India  Limited Suppliers of ATF in India
  • 12. Bargaining Power of buyers  High number of buyers fragmented- lowers their power  With high number of buyers, growth opportunities are also high.
  • 13. Competitive Rivalry  Very little product differentiation in Services  Mature Industry- Only scope for growth by gaining other people’s market share  High bargaining power of suppliers  No sense of brand royalty amongst customers and can easily switch to other airlines
  • 14. Threat Of Substitutes  Indirect Substitutes are railways- but not powerful as airlines, score highly in travel time  However direct substitutes are other Low Cost Carriers –since switch cost is low, threat of substitutes is high
  • 16.
  • 21. Core Competencies ( VRIO Framework) Recourse & competencies Values Rarity Imitability Organization Low Fares Yes Yes No Yes Single type of Aircraft Yes Yes Yes Yes Turn around time Yes No Yes Yes Brand Name Yes Yes Yes Yes
  • 22. Strategy  One type of airplane –brand-new Airbus A320  One type of fare-low  One type of customer services- professional  One way to deal with delays and cancellations-honesty  Go local-connect with the middle class  Focus on core competencies  Synergies in offering value added services-Holiday packages/visa services
  • 23. Position in BCG matrix premium services like Indigo CarGo, Indigo Experience No-frill segment with no meal and no entertainment options
  • 24. Pricing strategies • Low cost and high quality of service • Price to be differentiated with respect to days before the travel. • High seating density and load factor • Being a low-cost carrier, none of Indigo's flights have Business class or First class sections. It offers only Economy class seating. • To keep fares low, Indigo does not provide complimentary meals in any of its flights, though it does have a buy-on board in flight meal programme. • Targeting segments locally based on seasons and festivals
  • 25. Advertisement Strategy  Hoarding at airports.  Social networking medium- Facebook, Twitter, YouTube  Multi- storied building and offices.  Magazines.  Sponsoring fashion shows, talent hunts, new year parties etc.
  • 26. STRATEGIC OBJECTIVES  Increase number of destinations / frequencies served resulting in market leadership  Top/ of the mind brand in Indian aviation industry for AFFORDABLE QUALITY SERVICES  MARKET LEADER in terms of share in the travel industry  Introduce and sustain business travel segment for cost conscious and young professionals
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  • 31. Address Banglore G17/20, Richmond Towers,12 Richmond Road, Bangalore-560025 Tel:080-22219810, 22219820,22126879 CHENNAI 144/145, Malavika Center, Kodambakkam High Road, Nungambakkam Chennai – 600034 Tel : 044-65272262, 65272272 DELHI - NCR ( GURGAON) Level -3, Tower-C, Global Business Park,12, M.G. Road, Gurgaon – 122002 Tel :0124: 4352500 Goa City Business Centre, Coelho Pereira , Opp. The Jumma Majod, Dada Vaidya Road, Panjim, Goa - 403001, Tel : 0832- 2235115