bcg matrix of indigo airlines

Once the above strategy is successful and results in promising revenue growth, IndiGo cause extension to freight and chartered services as the next objective for further expansion INDIGO AIRLINES www.goindigo.in Toll Free : 18001803838 ( MTNL & BSNL) Call Center : 09910383838 BANGALORE G17/20, Richmond Towers, 12, Richmond Road, Bangalore560025 Tel: 080-22219810, … as possible. For example why the change effort failed in the case and what can be done to rectify it. SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Should Indigo Aviation enter new market or launch new product (Opportunities & Threats from SWOT Analysis) for FY17. By using the above frameworks for Indigo Airlines case study solutions, you can clearly draw conclusions on the following areas – BCG matrix is designed by a private consulting management firm, for those companies, which have multiple profit centers. However, it focused on the efficient delivery of certain services or experiences that it believed mattered most to its customers, a strategy that resulted in it becoming a market leader. (shahabhashmi2012@gmail.com) See our Privacy Policy and User Agreement for details. The case also explores whether the profits earned by Indigo are sustainable in the long run and focuses on the changes in the competitive positioning of Indigo Airlines as it switches from the position of a low cost player to a hybrid player in the aviation industry. British Airways was found in 1974 after the merger of four airlines in the United Kingdom and was owned by the British government until 1987 when it was privatized. Our work is always 100% customized to a client’s unique needs, and BCG’s airline consulting teams have a strong suite of proprietary tools to support our analysis and strategic approach. It also touches upon business topics such as - Value proposition, . This gives an insight in the promotion and marketing strategy of the airline’s marketing mix. Company needs to implement efficient strategies for retaining the position, and to increase the growth rate. The first, Machine Learing2 demand forecast, with more than 90% … Or how the marketing budget can be better spent using social media rather than traditional media. IndiGo airlines should focus on long haul aircrafts both for domestic and international sectors. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. Markets New & Product Market New BCG is a firm by the name of Boston Consulting Group, which provides consulting services to various businesses. The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. Market growth rate 2. Indra Jain The Cash Cow of Emirates is Economy flights; this is the foundation of the company. • To keep fares low, Indigo … It can further impact the cost of doing business in certain markets. It has to come from the data provided within the case study rather than data from outside world. The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following: 1. The case demonstrates how a firm incorporating innovative business practices can not only survive but also earn abnormal profits. It has always had a large market share, but there is no growth. - Consumer buying behavior and consumer buying process – Indigo Aviation should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Indigo Aviation wants to enter. Now customize the name of a clipboard to store your clips. But because of the options available, competition is high as well. Feel free to connect with us if you need business research. Global opportunities 7. Almost all of the case studies contain well defined situations. Status : Active. it all British Airways (BA) is the flag carrier airline of the United Kingdom and its biggest airline based on fleet size, international flights and international destinations. Analysis of market performance … You can use Porter Five Forces to analyze the industry in which Indigo Aviation operates in and what are the levers of profitability in those segments – differentiation, . On a simple grid, they plot where some of the world’s best-known airlines lie in terms of financial risk and level of government or shareholder support. A number of Indigo Aviation competitors have lost money in countries such as Brazil, Argentina, and Venezuela due to volatile forex market. Why you choose one course of action over the other. Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Strategy & Execution field, and broaden their skill set. Bcg Matrix. If you continue browsing the site, you agree to the use of cookies on this website. Ansoff Matrix of British Airways. Baggage facility is the cash cow for the Jet Blue Airline, as irrespective of other rivals, it offers more baggage capacity i… - Political consensus among various parties regarding taxation rate and investment policies. Based on this assessment, the Boston matrix helps in the long-term strategic planning of the company’s portfolio, as it indicates where to invest, to discontinue or develop products. Indigo Aviation needs to adjust its marketing strategy accordingly. IndiGo Airlines ist eine indische Billigfluggesellschaft mit Sitz in Neu-Delhi und Basis auf dem Indira Gandhi International Airport. It helps in communicating the points directly and the direction one took. (signaturesolutions@gmail.com) ***Dr. Syed Shahabuddin, Assistant Professor, FUUAST, Karachi-PAKISTAN. BCG Growth Share Matrix of Indigo Airlines BCG Growth Share Matrix is very valuable tool to analyze Indigo Aviation strategic positioning in various sectors that it … We write Indigo Airlines case study solution using Harvard Business Review case writing framework & HBR Strategy & Execution learning notes. In 2011, IndiGo placed an order for 180 Airbus A320 aircraft in a deal worth US$15 billion. Relative Weighted Average Market Share Vs Largest Competitor. The brand uses undifferentiating targeting strategy due to which it is losing out marketsshare in the competitive industry. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Conclusions – MBA & EMBA professionals should state their conclusions at the very start. The Indigo Airlines (referred as “Indigo Aviation” from here on) case study provides evaluation & decision scenario in field of Strategy & Execution. What are the resources needed to increase profitability (VRIO Analysis) BCG analysis should comprise not only growth share of industry & Indigo Aviation business unit but also Indigo Aviation - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. The BCG matrix is a strategic management tool that was created by the Boston Consulting Group, which helps in analysing the position of a strategic business unit and the potential it has to offer. BCG created advanced revenue management solutions to overcome to challenges posed by Covid-19. MKM versus BCG Matrix. Reasons – At the second stage provide the reasons for the conclusions. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently. Indigo Airlines has one of the major airlines in India in terms of market share. The industry attractiveness then is calculated as follows: Ansoff Matrix. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share). You can change your ad preferences anytime. Today, many people use Emirates Airlines, particularly the Economy seats on the flight. Not only this, 14 codeshare destinations beyond Istanbul are also open for sale on our website and app. StrategicmanagementPresentation BCG Matrix in the Marketing strategy of Indigo Airlines: No-frill segment with no meal and no entertainment options are stars in BCG matrix as due to affordable & low-cost option it has high demand in the market. According to Arpita Agnihotri, Saurabh Bhattacharya , Indigo Aviation needs international talent to penetrate into developing markets. According to Arpita Agnihotri, Saurabh Bhattacharya of Indigo Airlines case study, Indigo Aviation can use this trend to expand in adjacent areas . - Consumer activism is significantly impacting Indigo Aviation branding, marketing and corporate social responsibility (CSR) initiatives. Looking at the South Asian audience, Emirates Economy needs to milk its cow further; the performance … - Leisure activities, social attitudes & power structures in society - are needed to be analyzed by Indigo Aviation before launching any new products as they will impact the demand of the products. Once all the factors mentioned in the Indigo Airlines case study are organized based on SWOT analysis, just remove the non essential factors. Social media growth can help Indigo Aviation to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget. Strengths and Weaknesses are result of Indigo Aviation internal factors, while opportunities and threats arise from developments in external environment in which Indigo Aviation operates. Only LCC to make consistent profits. What is BCG matrix? The growth–share matrix (BCG Matrix) was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business units and to help the company allocate resources. Before Emirates Economy came into play, other airlines such as Qatar Airways had the most success in the industry. The BCG matrix, also known as the Boston growth-share matrix, is a tool to assess a company’s current product portfolio. With the help of this comprehensive study, we have suggested recommendations that can be adopted by IndiGo to sustain … These first of these dimensions is the industry or market growth. It offers only Economy class seating. The process can also be done to competitors to understand their competitive advantages and competitive strategies. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Indigo Aviation. with your market segmentation and defines your target markets. - Property rights are also an area of concern for Indigo Aviation as it needs to make significant infrastructure investment just to enter new market. Indigo Airlines case study is a Harvard Business School (HBR) case study written by Arpita Agnihotri, Saurabh Bhattacharya. Two key considerations while using BCG Growth Share Matrix for Indigo Airlines case study solution - The strategies adopted by Indigo Airlines to reduce its operational cost and enhance its revenue are discussed in the case. - Political and Legal Structure – The political system seems stable and there is consistency in both economic policies and foreign policies. BCG Growth Share Matrix is very valuable tool to analyze Indigo Aviation strategic positioning in various sectors that it operates in and strategic options that are available to it. See our User Agreement and Privacy Policy. Owned by InterGlobe Enterprises, IGO operates 896 daily flights to 44 destinations including 6 abroad of Bangkok, Dubai, Kathmandu, … Indigo Airlines has entered international markets has boosted its brand value The case focuses on the profitability of the Indian aviation industry and explains how Indigo Airlines, a new entrant in the Indian aviation space, registered profits within three years of its inception while its competitors continued to struggle with losses. - Environmental regulations can impact the cost structure of Indigo Aviation. Abinav Kumar With a vast network and … It provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates. Emirates Economy Class is the cash cow of Emirates Airline. Evidences – Finally you should provide evidences to support your reasons. - Inflation rate is one of the key criteria to consider for Indigo Aviation before entering into a new market. Factors like age, gender, income, and psychographics play an important role in grouping the population on the basis of similar characteristics in the service industry. When measured by passengers carried it is second-largest, behind easy Jet. - Experienced and successful leadership team – Indigo Aviation management team has been a success over last decade by successfully predicting trends in the industry. If you continue browsing the site, you agree to the use of cookies on this website. SWOT analysis will help us in not only getting a better insight into Indigo Aviation present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage. These two dimensions reveal likely profitability of the business portfolio in terms of cash needed to support that unit and ca… We try to cover all the bases in the field of Strategy & Execution, and other related areas. Indigo got permission to launch international flights after being 5 years in service and then launched international services in September 2011. According to the ansoff matrix indigo airlines will target the potential customer which is travelling through trains and at the same time the current customer database to penetrate the market.The scope of marketing current product in the new market is considered to be high risk however by adding value in the current product reduces the risk. Authors Arpita Agnihotri and Saurabh Bhattacharya are affiliated with IBS, Hyderabad. They consume less investment as compare to the profits they generate. Strategic Management INDIGO AIRLINES Europe Asia Business School 3 Executive Summary Objectives The objective of this report is to study the external environment of the Aviation Industry in India. Market (Industry) attractiveness replaces market growth as the dimension of industry attractiveness. Web site : … The airline continued to grow and acquire various smaller airlines in the United Kingdom and various other nations in Europe. Demand variability 4. Evidences should be both compelling and consistent. 3. Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. - Artificial intelligence and machine learning will give rise to importance of speed over planning. - Customers are moving toward mobile first environment which can hamper the growth as Indigo Aviation still hasn’t got a comprehensive mobile strategy. As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Indigo Aviation relative cost and value structure. Airline data analysis companies ISHKA and OAG have combined their brainpower to come up with an airline vulnerability matrix. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case. In order to create a distinctive image in the mind of customers it uses mascot as stimuli for creating a brand image of hosp… How to calculate Weighted Average Market Share using BCG Growth Share Matrix IndiGo Airlines, which commenced its flight services in 2006, did not offer free food onboard or entertainment on-board, unlike full-service carriers. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. Ruma halder. What are the strength and weaknesses of Indigo Aviation (SWOT Analysis) - Indigo Aviation business model can be easily replicated by competitors – According to Arpita Agnihotri, Saurabh Bhattacharya , the business model of Indigo Aviation can be easily replicated by players in the industry. Market size 3. - Health and safety norms in number of markets that Indigo Aviation operates in are lax thus impact the competition playing field. By this matrix, the company can decide whether to invest in products or stop producing the product. Arpita Agnihotri, Saurabh Bhattacharya provides extensive information about PESTEL factors in Indigo Airlines case study. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Welcome to Indigo Airlines • High seating density and load factor • Being a low-cost carrier, none of Indigo's flights have Business class or First class sections. The airline is based in Waterside near its main hub at London Heathrow Airport. BCG matrix has been a tool for Malaysian brands to classify and evaluate the products and services of a business. Pricing strategies • Low cost and high quality of service • Price to be differentiated with respect to days before the travel. IndiGo is an Indian low-cost airline headquartered in Gurugram, Haryana, India.It is the largest airline in India by passengers carried and fleet size, with a 59.24% domestic market share as of August 2020. Clipping is a handy way to collect important slides you want to go back to later. Indigo Airlines collaborates with bank for its promotions, for example the Indigo-ICICI bank promotion where one would get a cashback if one books the tickets using a ICICI debit or credit card. 1 Strategic Management of Multinational Companies: Case of Hilton *Lubna Ahsan, Assistant Professor, Hamdard University, Karachi-PAKISTAN. Indigo Airlines has strong backing promoters and is one of the largest low cost carriers in India 2. Blockchain + AI + Crypto Economics Are We Creating a Code Tsunami? Macroenvironmental factors (PEST) Each factor is assigned a weighting that is appropriate for the industry. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Air India uses a mix of demographics, psychographics, and geographic segmentation strategy. BCG’s Airline Industry Tools, Centers, and Solutions. BCG Matrix in the Marketing strategy of Indigo Airlines No-frill segment with no meal and no entertainment options are stars in BCG matrix as due to affordable & low-cost option it has high demand in the market. What are external factors that are impacting the business environment (PESTEL Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) - Age and life-cycle segmentation of Indigo Aviation shows that the company still hasn’t able to penetrate the millennial market. This is my one of the best project...its give me a good way to learn strategic management... Looks like you’ve clipped this slide to already. Industry rivalry 6. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) You can download Excel Template of Case Study Solution & Analysis of Indigo Airlines, Copyright © Executive MBA Pro Resources 2019, PESTEL /PEST / STEP Analysis of Indigo Airlines Case Study, 5C Marketing Analysis of Indigo Airlines, 4P Marketing Analysis of Indigo Airlines, Porter Five Forces Analysis and Solution of Indigo Airlines, Porter Value Chain Analysis and Solution of Indigo Airlines, Case Memo & Recommendation Memo of Indigo Airlines, Blue Ocean Analysis and Solution of Indigo Airlines, Marketing Strategy and Analysis Indigo Airlines, VRIO /VRIN Analysis & Solution of Indigo Airlines, PESTEL / STEP / PEST Analysis of Indigo Airlines, SWOT Analysis and Solution of Indigo Airlines, Milango Financial Services Case Study Solution & Analysis, Mabe: Learning to Be a Multinational (A) Case Study Solution & Analysis, Competing with Social Networks: Overview, Course Overview Note Case Study Solution & Analysis, Getty Images Case Study Solution & Analysis, Unilever's New Recipe for Growth Case Study Solution & Analysis, Home Plus: Riding the Korean Retailing Rollercoaster Case Study Solution & Analysis, International Oncology Services Private Limited Case Study Solution & Analysis, Quimera: Making Sustainability Happen Case Study Solution & Analysis, Estonia: Transition, EU Membership, and the Euro Case Study Solution & Analysis, New York City: Bloomberg's Strategy for Economic Development Case Study Solution & Analysis, Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles, Yes, it is one of the most diversified companies in its industry, Access to Critical Raw Material for Successful Execution, Yes, as other competitors have to come to terms with firm's dominant market position, Providing Sustainable Competitive Advantage, Product Portfolio and Synergy among Various Product Lines. Barney, J. Kellogg’s is the world’s largest cereal maker since 1906 and is located in the United States. Most of the competitors are trying to enter the lucrative segments, The firm has used it to good effect, details can be found in case exhibit, Provide short term competitive advantage but requires constant innovation to sustain. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Published by HBR Publications. by adamkhankasi | Jan 5, 2020 | Ansoff Matrix - Companies. Industry profitability 5. Yes, it is valuable in the industry given the various segmentations & consumer preferences. APIdays Paris 2019 - Innovation @ scale, APIs as Digital Factories' New Machi... Mammalian Brain Chemistry Explains Everything. Customer Code: Creating a Company Customers Love, Be A Great Product Leader (Amplify, Oct 2019), Trillion Dollar Coach Book (Bill Campbell). Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). A British Airways Board was established by the United Kingdom government in 1972 to manage the two nationalized airline … Ivy Chakraborty Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Indigo Aviation can be market leader in the industry without being a dominant player or segment leader in any of the segment. • The chartered flight services still remain an area not exploited by Indian aviation industry and IndiGo airlines can play a major role in tapping the potential in that particular market. Codes: QR QTR. The matrix consists of 4 classifications that are based on two dimensions. However, because of the options available, competition is high as well. Customers of Kellogg’s consists of B2C and B2B. BCG Matrix ApparelFor 2009-2014, theestimated growth rate is 2%Target’s sales in 2009 were6.7B, representing a 4%market shareTarget’s market share in theindustry is notdominant, but the market isfragmented BCG Classics Revisited: The Growth Share Matrix. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. It has also failed in the attempts made at innovation by research and development teams. Indigo Aviation should closely consider the forex inflow and outflow. They have devised a matrix, the growth share matrix, which helps the company to carry out portfolio analysis. Country : Qatar. At EMBA PRO, we provide corporate level professional case study solution. Date : 1994 -. VRIO stands for – Value of the resource that Indigo Aviation possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Indigo Aviation. The three step case study solution approach comprises – Michael Porter Five Forces of Strategy are –. (lubnaahsan12@gmail.com) **Burhan Qazi, Research Director, Signature Solutions, Dubai-U.A.E. In February 2012, IndiGo took delivery of its 50th … resp. IGO’s revenue and profit were Rs 19,370 crores and Rs 1,659 cr. Callsign : Qatari. The MKM is more sophisticated than the BCG Matrix in three aspects: 1. - Increase in Consumer Disposable Income – Indigo Aviation can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. - Foreign Exchange movement is also an indicator of economic stability. 1. Subsequently, internal environment analysis is conducted for IndiGo Airlines. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. 4. - Little experience of international market – Even though it is a major player in local market, Indigo Aviation has little experience in international market. It is a decision making tool in order to balance the activities of a company among those which make profits, those who ensure growth, those which constitute the … PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Indigo Aviation operates in. Registration : A7-BCG. Diese steht in keiner Beziehung zum US-Investor Indigo Partners, der die Billigfluggesellschaften Frontier Airlines (USA), JetSmart (Chile), Volaris (Mexiko) und Wizz Air (Ungarn) betreibt. Indigo Aviation needs to build strategies to operate in such an environment. Arpita Agnihotri, Saurabh Bhattacharya (2018), "Indigo Airlines Harvard Business Review Case Study. It is the most renowned corporate portfolio analysis tool. Below are the Strengths in the SWOT Analysis of Indigo Airlines: 1. Market share based on passenger volume was 40.4% in FY17 for the domestic market. Airline Qatar Airways. No public clipboards found for this slide. Position in BCG matrix premium services like Indigo CarGo, Indigo Experience No-frill segment with no meal and no entertainment options 23. IndiGo is a low-cost carrier airline based in Gurgaon, India in operation since 2006,. In December 2011, the DGCA expressed reservations that the rapid expansion could impact passenger safety. Boeing 787 - MSN 38325 - A7-BCGAirline Qatar Airways. You can choose from our domestic flights to 63 destinations in India or book cheap air tickets to 24 international destinations around the world. Products in this quadrant are found with high market share, and low market growth rate, which means they bring more cash in the company because of grabbing the large volume of sales portion of the industry. This will help in answering – the related costs and various sources of competitive advantages of Indigo Aviation in the markets it operates in. VRIO and VRIN analysis can help the firm. It gives some indication of how well-positioned airlines when it comes to surviving COVID-19. Over the years the country has progressively worked to lower the entry of barrier and streamline the tax structure. Market Attractiveness includes a broader range of factors other than just the market growth rate that can determine the attractiveness of an industry / market. Submittedby: - Strong Balance Sheet – The financial statement of Indigo Aviation looks strong and will help the company going forward. Market Present & Product Market Present Promoting its low cost airlines aggressily & increase its market Share Market New & Product Market Present Promoting Indigo Airlines to new International Destinations Market Present & Product Market New Promote loyalty programs for frequent flyers. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. - E-Commerce and Social Media Oriented Business Models – E-commerce business model can help Indigo Aviation to tie up with local suppliers and logistics provider in international market.