INDIGO AIRLINES

Group A2

OBJECTIVES

• Strategic Analysis- strengths and weakness of strategy, effects of external and internal environment

• Competitor Analysis- determining the current and potential competitors

EXTERNAL ANALYSIS PORTERS FIVE FORCES

Rivalryamong existing

Competitors

BargainingPower of

Buyers

Threat ofSubstituteProducts

BargainingPower ofSuppliers

Threat of New

Entrants

Threat of New Entrants

•Product Differentiation by Inflight Service, Stair Free Ramps and Q-Busters•Government Regulations: Open skies•Setup Costs•Fuel Prices•Pilots

Rivalryamong existing

Competitors

BargainingPower of

Buyers

Threat ofSubstituteProducts

BargainingPower ofSuppliers

Threat of New

Entrants

Bargaining Power of Suppliers

•Two for airplanes- Airbus and Boeing•Four suppliers of ATF: IOC, HPC, BP and ONGC•ATF drives 35-40% of costs as compared to 20-25 globally

Rivalryamong existing

Competitors

BargainingPower of

Buyers

Threat ofSubstituteProducts

BargainingPower ofSuppliers

Threat of New

Entrants

Threat of Substitute Products

•Other LCCs in the fray•Railways – Time consuming•Status symbol

Rivalryamong existing

Competitors

BargainingPower of

Buyers

Threat ofSubstituteProducts

BargainingPower ofSuppliers

Threat of New

Entrants

Bargaining Power of Buyers

•Opportunist behavior•Low switching costs•Backward integration is difficult

Rivalryamong existing

Competitors

BargainingPower of

Buyers

Threat ofSubstituteProducts

BargainingPower ofSuppliers

Threat of New

Entrants

Competitor Rivalry

•Highly competitive•Low differentiation• Imitable Strategies

INTERNAL ANALYSIS-SWOT

STRENGTHS• Only LCC to make continuous profits

• High Brand Awareness and brand equity• High service quality• Efficient Management that ensure on

time arrival• Fuel Efficient aircrafts• Short haul flights• Customer service• Cost leadership: Successful

implementation of low cost strategy• Continuous Innovations to improve non

price factors

WEAKNESS• Scope of product differentiation

is less• Too many players• Untapped domestic cargo

segment• Not present in many domestic

routes• Limited presence in International

Market• No established alliances

OPPORTUNITIES• Freight Market• Increase in domestic

market and hub• Expansion in International

Routes• Chartered Flights• Increasing middle class

population

TREATS• Increased Competition• Economic Slowdown• Government Policies• Scarcity of Trained Pilots• Rising fuel prices

COMPETITOR ANALYSIS

PASSENGER GROWTH

MARKET SHARE

IndiGo32%

SpiceJet17%

Jet Airways21%

Go Air9%

Air India20%

Air Costa1%

Air Asia1%

LOAD FACTOR

ON TIME PERFORMANCE

PASSENGER COMPLAINTS