Final Indigo Ppt

7/27/2019 Final Indigo Ppt

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Mihir HombalkarPrathamesh KulkarniPrachi VajaniDeepesh Chhabra

Pranil DeoneAnand Lihinar


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Indian airlines lost an estimated USD1.65 billion on revenueof USD 9.5 billion in FY2013

India is currently the 9th largest aviation market handling121 million domestic and 41 million international passengers

The air transport in India has attracted foreign directinvestment (FDI) worth US$ 456.84 million from April 2000to July 2013

Foreign Equity & Untapped Potential of Tourism


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29.7

25.3

19.2

17.5

8.3

Market Share of players in Aviation Industry (As of July

2013)

IndiGo

Jet Airways-Jet lite

Air India Domestic

Spice JetGo Air


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Indias largest low fare Carrier

IndiGos Technical Dispatch Reliability is 99.91% making

it the airline with the least number of cancellations inIndia

447 daily flights connecting 34 destinations

Six-fold increase in its net profit to Rs 787 crore for theyear ending March 2013


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PORTERS Five Forces ModelPESTLE AnalysisSWOT Analysis


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Threat of New Entrants1. Government Regulations2. Product Differentiation

3. Set Up Costs4. Resources

Bargaining Power of Suppliers1. Duopoly of the two major Suppliers2. Only 4 suppliers for ATF3. Threat of forward integration


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Bargaining Power of Buyers1. Highly Fragmented Industry2. Not much Product & Service Differentiation

Competitive Rivalry1. Mature Industry with very little growth2. No Customer Loyalty3. Limited Scope of Product & Service Differentiation4. Exit Barriers

Availability Of Substitutes1. Railways but not a very powerful Substitute2. Other low Cost Airlines


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Political/Legal factors 49% FDI in domestic airline sector Slow growth of airport infrastructure, Lack of government

initiatives stalling the growth AAI plans to invest massively in next 5 years up to US $ 3.07

billion in metro and non metro airports

Economic factors Business cycles impact airline industry( treated as luxury

during economic downturn) High fuel prices and surging taxes Industry operates under High Cost of Capital Slowing of the economy leading to underutilized capacity


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Social factors Indian population is going through a transition phase Rise in income level of Tier 2 & 3 cities Status symbol

Significant rise in number of tourists Technological factors Growth of e-commerce & e-ticketing Reduced check in time, helping aircrafts achieve maximum air time The CAT technology has helped pilots to take off even during low

visibility hours Environmental factors Increase in global warming Dependency on atmosphere & Climatic condition


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Turnaround time 31 minutes

Load factor Highest of 89.40%

Low frills Low operating cost structure

Hub and spoke model for flights

Highest no. of seats and light in weight


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High safety Record Brand Awareness

Well trained staff

Backing from promoters

Successful implementation of low cost strategy

Highly efficient on-time arrivals (86%)

Tie-up with hotels

Indigo ramp

Elimination of middlemen i.e. Ticket agents


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Scope for differentiation is low Services can be quickly imitated

Not much international flights Do not have as many routes as competitors Have not explored cargo market


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Increasing middle classpreferences

Domestic cargo high

demand Only domestic player

to show positive signs

Increase frequency

THREATS

Fuel price hike

Increase in taxes

Economic slowdown

Advancing technology Poaching of work force

High exit barriers

OPPORTUNITIES


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Tangible Resources

Physical Resources

Human Resources

Technology

Resource Financial Resource

IntangibleResources

Reputation

Social capital

Brand Awareness

EmployeeRelationship


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Financial Health

High Cash Flow

Fourth Indian low costcarrier to operateoverseas

Profitable airlinecompany in India - Orderof 180 new aircrafts A-320 USD 15 Billion

Low-Fare Flight

Best low cost airline ofIndia & Central Asia

Scored a hatrick atSKYTRAX World AirlineAwards 2012

Cost Effectiveness

Operating on secondaryairport

E-ticketing

Fewer employees peraircraft

More seats per aircraft

Selling and leasing backplane

On-time flights

Always on time andoften before time

Low Turnaround Time

Turnaround time forIndigo is less than 30minutes

No complimentary

meals


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One type of airplane- brand new Airbus A320s One type of fare low One type of customer service professional One type of routes serving destinations within India One type to deal with delays and cancellations - honestly


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Be visible go all out to project yourself as future MarketLeader

Go Local Connect with middle class Focus on core competencies and market them Aim to compete with Railways in the long run


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Indigo purchased the aircrafts, then sold them to intermediary and thenhire the fleet on lease from then on contractual basis.

Use single configuration aircraft. Indigo preferred airbus over Boeing as the fuel efficiency of the former is

greater than the latter

Advertising Strategies Airport Hoardings Social Media

Collaboration with Multiplexes Magazines Sponsoring Events Use of Regional Languages


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Low cost and High Quality ServicePrice to be differentiated with respect to days before the travelNo frills such as free food/ drinksTargeting segments locally based on seasons and festivals


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Diversification Indigo which began its services in 2006, has started its preparation for

international expansion. In January 2011, Indigo signed a majorprocurement deal with Airbus to buy 180 A320s in one of the largest everdeals of its kind

IndiGo Airlines offering a diverse array of packages for its passengers:Holiday packages, business packages, religious packages, God's OwnCountry, hill station trips and Goa's sun & sand.

Recently launched EMI options for consumers thereby expanding the

potential customer base

Mergers and Acquisition Indigo bought Republic Airways Frontier for $36 Million


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Threat of ImitationImitation of business modelEconomies of ScaleImitation of aircrafts Human Resource imitation-Cat 3 compliant pilotsCost Leadership rises threat of

retaliationHigh Imitation Lag

High power of aircraft

suppliers- Boeing and AirbusLimited number of suppliersfor ATF

Government InterferenceHigh power of supplier ofpilots due to shortage ofpilots

Railways

Technological

Advancement

Premium Airlines like Air

India, Jet Airways

Either of the LCC likeSpicejet, GoAirAdded Value

AppropriatedValueTraining

Strikes

BenchmarkingSustaining cost leadershipby maintaining economies ofscale and resources

Payment System-incentives

Threat of SlackThreat of Hold Up

Threat of Substitution


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Final Indigo Ppt

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