Alternate Strategies

Strength Weakness
TWOS Matrix  Highest market share  High cancellation rate
with 39.8% (0.98%) compared to
 Low cost airline suitable other airlines.
for highly price sensitive  Just 3.5% share on
Indian population International traffic routes
 High brand awareness (Air India-16.6%)
and brand equity
Opportunities  Collaboration with MNCs  Specially designed
 Second Highest customer satisfaction with 0.3 and big brands. customer retention
complaints per 10000 passengers carried  Form a strategic program
(Vistara 0.1) alliance with
 Second Highest on time performance with 71.2% logistics/cargo
flights on schedule (SpiceJet 71.6%) companies.
 IndiGo’s capacity on international routes
increased by 76.1% in July 2017 over the year-
ago period
Threats  Cadet pilot program Tie  Break the low cost carrier
 Entry of new competitors in both low cost (Air up with Flight Training image by dedicating a sub-
Asia) and premium (Vistara) segment Adelaide, Australia brand to premium
 Rising fuel cost segment
 Shortage of trained pilots and ground staffs

Data Sources: Bloomberg | Quint

Alternate Strategy Program Procedure Budget
Collaboration with MNCs Collaboration with MNCs 1. Create and train a 50 Crore
and big firms. and big brands to become corporate sales team
their official airline partner. 2. Identify the companies
Targeting IT companies with frequent flying
that have frequent trips for employees for work
their employees would related issues
ensure a steady inflow of
business all around the
year.
Form a strategic alliance Form a strategic alliance IndiGo CarGo is India only 100 Crore
with logistics/cargo with logistics/cargo profitable cargo carrying
companies companies such as airline. The backward
Maersk, UPS to attain integration in terms of
strategic alliance will
access to specific
provide a broad market
markets and gain
sector and vertical
valuable insights of expansion in logistic
freight market. business.
Specially designed 1. Frequent Flier Program 1. Analyze the past data 10 Crore
customer retention 2. Frequent Route of all travel history.
program Program 2. People should be
categorized into two
segments- Frequent
flier and frequent route
3. Provide benefits and
customized offerings to
those fliers
Cadet pilot program Tie up To tackle the problem of 1. Comprehensive 24 Self-Financed for cadets
with Flight Training incompetent pilots and skill months’ plan
Adelaide, Australia gap IndiGo should 2. People who have prior
collaborate with third party experience as ground
Flight training institutes. staff or cabin crew
This program can be should be given
extended to cabin crew preference for pilot
members and ground staffs program
Break the low cost carrier IndiGo Elite Program 1. Market research for Rs 150 crore campaign and
image by dedicating a sub- customers who are market research
brand to premium segment willing to pay more for
better benefits offered
2. Create a new brand
awareness campaign
for elite class segment
3. This strategy is a long
term strategy and will
take 2-3 years to
develop.