Competities And Capabilities And Opportunities For Indigo Airlines

975 Words 4 Pages
Opportunities

1. Opening up of International routes can boost business of IndiGo. IndiGo airlines have not ventured into the huge air freight market which can contribute a sizeable portion of the revenue.

2. The flight density of IndiGo airlines is still limited in domestic market; hence there is a big scope to increase the flight frequency

3. Largest market share among LCCs in Indian Market

4. IndiGo currently does not have too many long-haul aircrafts and as per CAPA study by 2020, Indian Airports are expected to handle more than 100 million passengers. IndiGo airlines should focus on long haul aircrafts both for domestic and international sectors.

5. Middle class considering air travel can be a huge opportunity for IndiGo airlines.
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Plenty of new LCCs to compete with for IndiGo airlines.

4. The shortage of trained pilots, co-pilots and ground staff is severely limiting the growth prospects of all the airline companies.

5. Rising labour costs and changing governance policies.

6. Barriers to exit in aviation industry are quite high because of high capital investment.

7. Social media has its effects on customers. Any unpleasant incident will be known to all population which can lead to lowering your potential customer and increased churn rate.

INTERNAL ANALYSIS

Core competence, Capabilities and Resources are the key elements of any internal resources. We can describe these as below-
Resources
We can categorize the resources in 2 broad scenarios as –
1. Tangible
2. Intangible

Tangible Resources

1. Human Resource
Human resources consist of pilots, crew-members and ground staff. It is not possible for any airline to recruit any trainee pilot and send him to fly an aircraft carrying 300 passengers. The work-force has to be trained and can only assign after the careful evaluation.
A strong recruitment process across departments thus plays a very critical role. IndiGo has had a loyal team so far and continues to take pride in its entire staff.

2.
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Reputation/Brand Equity

i) On-time arrival is the strength and also a point of differentiation for the IndiGo Airlines

ii) IndiGo allows passengers to carry their own eatables and snakes inside the flight

iii) Implementation of innovative ideas viz. “check-in” customers with only cabin luggage can check-in with the IndiGo employee carrying hand-held device rather than standing in queue for the boarding pass

iv) IndiGo has been able to offer the lowest fare in comparison to its competitors like SpiceJet, GO etc.

v) Since its inception, IndiGo has been successful in maitaining a positive brand image, even in its commercials it pitches itself as a low-cost carrier and “every time on time” arrival.

2. Marketing Mix of IndiGo Airlines

i) Product
The core product of IndiGo airlines is indirectly Air travel. Passenger traveling is absolutely IndiGo’s core however; the cargo line of IndiGo airlines is growing as rapidly. IndiGo airlines, being the country’s largest low-cost carrier offers one of the best airline services in the country. For the past three years, IndiGo has managed to create profit whereas its competition has been making loses. This has largely been due to the fact that the airline increased its capacity and efficiency in its services while containing costs. As a way of increasing capacity, new flights have been introduced in order to get more

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