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Indigo Airlines Essay

3673 words - 15 pages

Strategic Plan and Focus
To achieve the firm's strategic direction, the firm's objectives, mission, aims, goals and competitive advantage have been created to offer an image and vanguard for the firm's success. In accumulation, to determine the extent of the services and products that are offered by the organisation, and the primary environmental commitment towards nation and the aviation industry, are also important aspects of the company's strategic direction and focus.
Mission Statement
Indigo airlines aims to become the number one leader in the low cost airline industry of India, offering the best service and ensuring highest standards of quality at low cost to the customer.
Goals ...view middle of the document...

This gave a better picture and reputation for the airlines. This scenario helped indigo airlines to invest more in their staff skills and there airline operations team which gave them competitive edge over the competition in the market.
2.4.1 SWOT Analysis
According to the SWOT analysis there are more opportunities and strengths for indigo rather than weaknesses and threats but in order to increase the market share and stabilize the growth it is important to work on the weaknesses first and keep a strong focus on the opportunities.
Strengths
Good reputation in the market
Skilled staff
High profit margin in 2009 as compared to competitors
Lower cost of the product as compared to the competitors
Weakness
Relatively new in the market
Lacks in number of flights as compared to the competitors
Opportunities
High Profit Growth
Rapid increase in the market growth
Product development
Technological advancements
Threats
Threat of a new entrant
Higher growth rate of the market but increase in the competition
Market fluctuation
.
2.5. Industry Analysis
.
The market in India for the aviation industry is a growing market. For years Indian aviation industry was being dominated by air India(Indian Aviation Journal2002)..About 15 years back companies like jet airways, air Sahara, spice jet, kingfisher and a few others came into picture. In 2006 august indigo airlines entered the aviation industry. Mentioned below are the current market statistics.
Total number of domestic flights in India
8600
Total number of seat increase
1.7 million a year
% increase in travellers
12% yearly basis
% increase in flights
25% yearly
(Source Indian aviation journal2010)
2.6. Competitor Analysis
As the airline industry is becoming a big market due to the 12.8% growth of the Indian aviation industry in the last 5 years (Indian Aviation Journal, 2002,).. There are new airlines being introduced as low cost airlines. The biggest competition for indigo airlines is spice jet airlines which have been with indigo for quite some time as the strongest competitor. Spice jet sells more tickets than indigo (Clash of the Titans http://www.articlesnatch.com/topic/Spicejet+Airlines, Date accessed 3rd December 2010). This due to the time span of the two airlines being different, indigo is a 4 year old company where as spice jet has been there for more than 7 years(Spice Jet Industry, http://www.makemytrip.com/flights/spicejet-history.html, Date accessed 3rd December 2010) and is treated as a major in the industry when it comes to low cost airlines. This competition has been going on for quite a lot of time but now as indigo has started making name for itself spice jet is feeling the heat too.
.
2.7. Customer analysis
The current customer is more aware about the services and the rights, the price and the difference between paying for food. The increasing percentage of people travelling via airplanes every year domestically is increasing this gives a slight idea of...

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