This document provides an overview and strategic analysis of IndiGo Airlines, India's largest passenger airline. Some key points: - IndiGo has a 38.5% market share and operates flights to 46 domestic and international destinations with a fleet of 131 aircraft. It is a low-cost airline headquartered in Gurgaon. - A PESTLE analysis identifies opportunities like growing middle class and GDP but also threats like rising fuel prices. Porter's five forces analysis finds high competitive rivalry and bargaining power of suppliers. - IndiGo's core competencies include low fares, operating a single aircraft type, quick turnaround times, and its brand. Its strategy focuses on these competencies through

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

4. Location

5. Indigo route map

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

15. Strategic
orientation
Defender
(INDIGO)
Prospectors
(JET AIRWAYS)
Analyzers
(VISTARA)
Reactors
(AIR INDIA)
Strategic Orientation

17. INTERNAL
ANALYSIS
Resources
Capabilities
Core
competencies
Competitive
Advantage

18. Resources
Tangible Intangible

19. Tangible resources
Aircraft Fuel Human
Resource

20. Intangible resources
Brand
Equity/Reputation
Social Capital
Brand Awareness Employee
Relationship

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

28. Competitors

30. www.goindigo.com

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

32. Thank
You