Strategy Indigo Report Group 7 (1)

A STUDY OF THE COMEPTITIVE STRATEGY ADOPTED BY INDIGO AIRLINES

Group 7 Section A

Ankit Goyal(M007-15) Nikhil Dalal(M018-15) Prabhat Kerketta(M039-15) Shila !an"on(M0#9-15) Shrini"hi K$"i(M0%8-15) & & ' Satyanarayana (M058-15)

A St$"y  !he *o+etiti,e Stratey A"ote" 'y .n"io Airline/

%

Eecuti!e Su""#r$ O%&ecti!e'

!he obeti,e o thi/ reort i/ to /t$"y the "etaile" /t$"y o the o+etiti,e /tratey a"ote" by .n"iGo airline/ an" al/o to i"entiy 2hat ha/ hele" .n"iGo o$teror+ it/ o+etitor/ riht ro+ it/ inetion Met(o)'

!o $n"er/tan" the i+ortant ator/ re/on/ible or the or+$lation o ororate /tratey4 2e ha,e $tilie" Stratei Manae+ent tool/ like Porter6/ i,e ore/ +o"el4 &al$e *hain analy/i/4 S! +atri4 P:S! an" the &.; ra+e2ork Li"it#tion'

D$e to oni"entiality la$/e an" ororate oliie/ o the o+any4 ri+ary "ata o$l" not be /o$re" ankan la arrier Sri>ankan Airline/ reently 2on the ontrat o eror+in hea,y +aintenane hek/ on %= o the 50

A St$"y  !he *o+etiti,e Stratey A"ote" 'y .n"io Airline/

=

Airb$/ A3%0-%00 oerate" by .n"iGo Sri>ankan ha/ been reei,in ontrat/ or the a/t # year/ to eror+ +aintenane hek/ on .n"iGo airrat .n"iGo i/ belie,e" to o$t/o$re it/ airrat to Sri>ankan bea$/e o the $nbearable ta i+o/e" on the loal M; ro,i"er/ +akin the+ $na,orable 2hen o+are" to the M; ro,i"er/ in Sri >anka A%out In)i+o

.n"ia i/ one o the a/te/t ro2in a,iation in"$/trie/ in the 2orl" 'ea$/e o the intro"$tion o liberaliation oliy in the .n"ian a,iation /etor4 the in"$/try ha/ 2itne//e" "ierene 2ith the entry o the ri,ately o2ne" $ll /er,ie airline/ an" lo2 o/t arrier/ .n %00=4 the ri,ate arrier/ ao$nte" or aro$n" 75C /hare o the "o+e/ti a,iation +arket 'e/i"e/4 there 2a/ /iniiant inrea/e in the n$+ber o "o+e/ti air tra,el a//ener/ So+e o the ator/ that ha,e re/$lte" in hiher "e+an" or air tran/ort in .n"ian l$e" the ro2in $rha/in o2er o +i""le la//4 lo2 airare/ oere" by lo2 o/t arrier/ an" the ro2th o the to$ri/+ in"$/try in .n"ia .n a""ition to the liberaliation oliy4 the "ere$lation oliy ha/ al/o laye" a +aor role to eno$rae ri,ate layer/ in the a,iation in"$/try 'elo2 rah /ho2/ the ra"$al ro2th in the "o+e/ti air traiF !he ro2th in the a,iation in"$/try looke" ro+i/in an" hene attrate" +any lo2 o/t arrier/ like Sie Eet4 Go Air an" .n"iGo ater the /$e// o Air Dean in %003 n one han"4 the boo+in oort$nitie/ eno$rae" layer/ to ean" aaity b$t on the other han"4 ri/in $el o/t/ an" taation rate/ inrea/e" the oerational o/t/ !h$/ the lo2o/t layer/ o$n" it "ii$lt to +aintain their o++it+ent .n their $re to /$r,i,e4 they 2ere o+elle" to inrea/e rie/4 a"" ree rere/h+ent/ an" be,erae/ on-boar"4 et So+e layer/ /o$ht re$e in +erer/4 2herea/ /o+e /$r,i,e" by +o"iyin their b$/ine// +o"el o2e/tPrie

Se+ent

*o/t*on/io$/Pa//ener/

Taret Gro$

>o2er Mi""le *la// H Mi""le *la//

Po/itionin

>o2*o/tNorill/ Go Air Sieet

*o+etitor/ EetKonnet (lo2 o/t bran" o Eet Air2ay/) Air A/ia

In)u'tr$ An#,$'i'

A St$"y  !he *o+etiti,e Stratey A"ote" 'y .n"io Airline/

8

A%out t(e In)u'tr$

.n"ia $rrently rank/ 9th in the a,iation +arket in the 2orl" 2ith a /ie o aro$n" ?SI 1= bn >ookin at the $t$re4 .n"ia a,iation in"$/try ro+i/e/ a h$e ro2th otential bea$/e o ro2in +i""le la// o$lation4 rai" eono+i ro2th4 hiher "i/o/able ino+e/4 ri/in a/iration/ o the +i""le la// an" o,erall lo2 enetration le,el/ !he *i,il A,iation in"$/try in i/ ainin ro2th 2hih i/ "ri,en by ator/ /$h a/ lo2 o/t arrier/4 +o"ern airort/4 orein "iret in,e/t+ent/ in "o+e/ti airline/4 $ttin e"e inor+ation tehnoloy inter,ention/ an" ro2in e+ha/i/ on reional onneti,ity !otal a//ener/ arrie" in Sete+ber %015 inrea/e" 13%# er ent year-on-year to 873 +n ro+ 771 +n in Sete+ber %01# .nternational an" "o+e/ti a//ener trai re2 == er ent an" 155 er ent in Sete+ber %015

So+e +aor initiati,e/ $n"ertaken by the o,ern+ent areF •

•

!he Airort/ A$thority o .n"ia (AA.) lan/ to re,i,e an" oerationali/e aro$n" 50 airort/ in .n"ia o,er the net 10 year/ to i+ro,e reional an" re+ote air onneti,ity !he Go,ern+ent o .n"ia4 in it/ "rat i,il a,iation oliy relea/e" or in$t/ ro+ /takehol"er/4 ha/ roo/e" rai/in orein Diret .n,e/t+ent (D.) li+it in "o+e/ti airline/ ro+ the $rrent #9 er ent to o,er 50 er ent4 alon 2ith other reor+/ /$h a/ ta inenti,e/ or airline/4 inenti,e/ or tra,eller/ to ly to /+all to2n/ at aor"able rate/

M#-e In In)i# Gro.t( )ri!er' •

•

•

•

•

i,e international airort/ (Delhi4 M$+bai4 *ohin4 ak o oo" B$ality ilot/ +ake/ the+ ,ery o2er$l to hoo/e their o+any nly o$r /$lier/ o a,iation $el to airline/ in .n"ia !h$/ oil o+anie/ ha,e a h$e barainin o2er A e2 n$+ber o B$ality /$lier/ kee/ the+ in o++an"in o/ition 2ith re/et to • the airline/ they hoo/e to /$ly the art/ 2ith B#r+#inin+ po.er o* %u$er' '$yer/ in airline/ in"$/try are lare in n$+ber an" hihly ra+ente" th$/ lo2erin their • o2er !he /2ithin o/t/ or the b$yer/ i/ ,ery le// an" hene they ha,e a lot o o2er o • 2ho+ to hoo/e to ly 2ith 'ak2ar" interation 2ith the b$yer/ i/ ,ery "ii$lt •