IndiGo Airlines: A Comprehensive Analysis of Business Strategies

This report offers a comprehensive analysis of IndiGo Airlines, a prominent low-cost carrier in the Indian aviation market. It begins with an executive summary and an overview of the company, including its operational history and market position. The report delves into a situational analysis, examining both the external environment (political, economic, social, technological, legal, and environmental factors) and the internal environment of IndiGo. It assesses the airline's current performance, including financial metrics and market share, and analyzes the competitive landscape. The report explores IndiGo's current strategies, conducts a SWOT analysis, and identifies strategic objectives. Key value drivers, such as networks, pricing, products, customer service, and loyalty programs, are discussed, along with proposed action plans and a Gantt chart for implementation. The report concludes with future projections, findings, and recommendations, providing a well-rounded assessment of IndiGo's business capabilities and strategic direction. It also includes financial data and market share information in the appendices.

Running head: ANALYSIS INDIGO AIRLINES
ANALYSIS INDIGO AIRLINES
Name of the student:
Name of the University:
Author's Note:

1ANALYSIS INDIGO AIRLINES
Executive summary
This report aims to discuss the business capabilities and strategies of one of the most popular
low-cost airlines of Indian market, IndiGo Airlines. This report has discussed the financial
operation of the company based on its annual report of the current year. The Indian aviation
market where this company operates is developing but has tough competition among the airline
companies of similar strength. The action plan has focused on the six value drivers which include
networks, price of the service, products and packages, customer service and relationships and
distribution with loyalties. Based on this, the Gantt has also been provided.

2ANALYSIS INDIGO AIRLINES
Table of Contents
Introduction:....................................................................................................................................4
Company overview..........................................................................................................................4
Situational Analysis.........................................................................................................................6
External environment Analysis:......................................................................................................6
Internal environment analysis........................................................................................................10
Current Performance..................................................................................................................10
Environment in which it competes............................................................................................11
Market activity...........................................................................................................................12
Competition analysis.................................................................................................................14
Current strategies of Indigo.......................................................................................................15
SWOT analysis:.............................................................................................................................18
Strategic objectives:.......................................................................................................................20
Identification of the Key value drivers..........................................................................................21
Action plans to achieve the value driver........................................................................................23
Value Driver 1: Network...........................................................................................................23
Value driver 2: Distribution.......................................................................................................24
Value driver 3: Price..................................................................................................................25
Value driver 4: Products and Packages.....................................................................................26
Value driver 5& 6: Customer service and relationships with Loyalty awards..........................27

3ANALYSIS INDIGO AIRLINES
Future Projections..........................................................................................................................28
Findings:........................................................................................................................................29
Conclusion:....................................................................................................................................30
References and Bibliography:........................................................................................................31
Appendices:...................................................................................................................................35

4ANALYSIS INDIGO AIRLINES
Introduction:
The aim of this report is to discuss the situation of the Aviation market of India especially
focusing on the company IndiGo Airlines which has been operating in this market for more than
ten years. The aviation industry of India is fast growing and gets the full support from the
government and other stakeholders for which it has become the first choice of the customers
(Jung, Kim & Yoo 2018, p. 110). This airline has been initially working in the domestic market
of India with high quality customer service and low fare. This report will discuss the current
performance of the company, its market activity and the internal as well as external environment
in which it operates. It will also analyze the situation and market condition of the Indian Aviation
market. Along with it, the report will discuss the strategic objectives taken by the company for
next three years with a detailed discussion of key value drivers like Networks, Price of the
service, Products and packages, Customer service and relationships, Customer loyalty and
Distribution. By focusing on these value drivers, the company will be advised with an effective
action plan which will help it to move in a higher position in the global aviation market. These
key value drivers will assist the firm in achieving the objectives and hence, action plans for each
of them with measures and targets with each one of them shall be provided. A Gantt chart
representing the timeline will also be provided.
Company overview
IndiGo entered the Indian market in 2006 and since then the company has been operating
in the domestic market in India. IndiGo is also the largest individual Asian low-cost carrier in the
terms of jet fleet size as well as the number passengers carried (Ibef.org. 2018). This particular
airline operates in 52 destinations from its primary hub situated in the Indira Gandhi
International Airport, New Delhi.

5ANALYSIS INDIGO AIRLINES
Figure 1: Company Facts
(Source: As created by the Author)
Figure 2: The Indigo Airlines Logo
(Source: Goindigo.in 2018).

6ANALYSIS INDIGO AIRLINES
Situational Analysis
External environment Analysis:
Political factors:
India has a fast-growing aviation market which attracts the political attention and hence
they provide it with certain benefits. This stable political system of India allows 100% foreign
direct investment in the Greenfield airports and more than 74% in the existing airports which
enables the airlines to utilize the new routes as well as markets so that they can earn additional
revenue (Kuchhal, Verma& Mandawat 2016). This country has strong and well-organized
regulations under which the airlines must operate. IndiGo mainly operates in the domestic
market hence it has to conform to the 5/20 rule. This regulation mandates that the domestic
airlines must operate for at least 5 years and have 20 carries before they start to operate in the
international market. These lowers the new entrants in the aviation market of India
(Civilaviation.gov.in 2018).Moreover, as the competition has become fiercer, the government of
India has come up with the UDAAN scheme to provide hope to the existing as well as potential
players.
Economic factors:
Economic factors support the developing aviation market of India. This is due to the fact
that the country has been recording a consistent GDP growth and income of the middle class is
also increasing. This hike in average income has enhanced the frequency of tourism for various
regions of the country. Fluctuation in the aviation fuel prices has affected the costs as well as
profitability of the airlines both in positive and negative ways (Kumar, Dash& Sahu 2018, p.19)..

7ANALYSIS INDIGO AIRLINES
Figure 3: The concern of rising fuel prices
(Source: Ibef.org. 2018)
Social factors:
The lifestyle of Indian people is changing gradually to high therefore their demand of
getting comfort and service is also increasing. This is affecting the cost structure of the airlines.
The passenger profile has also changed due to this reason as they are becoming more economical
minded therefore they make the choice for the economy class tickets (Behera 2016, p.58). In
addition to this, the number of foreign tourists is increasing sharply but domestic leisure travel
has also hiked. In India, travelling in air even within a country has become a status symbol for
which the middle-class people are also getting attracted to use the airlines (Jung, Kim & Yoo
2018, p. 112). Hence, the different airlines in the industry come up with various schemes and low
cost models to be the best option for the consumers.

8ANALYSIS INDIGO AIRLINES
Figure 4: The rising occupancy of the airlines
(Source: Financialexpress.com 2018)
Technological factors:
As the government of India has been investing in the development of airlines and
modernizing the airports, it has become easy for the airline companies to operate successfully in
the market (Indiatimes.com. 2018). Despite the fact the video conferencing process have reduced
the number of commuters, the technological development and applications have increased
interest in adopting the satellite-based navigation system to pilot the flights which further
motivates the consumers to travel in the airline (Sanyal& Hisam 2016, p. 156).

9ANALYSIS INDIGO AIRLINES
Figure 5: The application of Indigo airlines
(Source: Indiatimes.com. 2018)
Legal factors:
The regulations of the airlines industry in the Indian market are strict which has increased
the number of legal cases against the companies from both the customers as well as the worker’s
side. The workers are not being paid their salaries on time and the customers are complaining of
poor quality service which is increasing the legal costs of the companies (Prabhu 2016). This is
the reason why the companies are taking measures for adhering to all the regulation thus this
ends up increasing the legal costs for the organization. Moreover, all the airlines are required to
abide by the Aviation Law 2018 along with the guidelines stated by Aviation Security Rules and
Regulations.

10ANALYSIS INDIGO AIRLINES
Environmental factors:
Adverse weather conditions result in the cancellation or delay of the flights that directly
affects the revenue of the airline companies. In order to reduce the carbon footprint, the Indian
airlines companies are participating in various CSR activities and adopting the fly green methods
(Saranga & Nagpal 2016). It is the duty of every airline as present in the industry to ensure that
they spend an adequate amount on Research and development to ensure success.
Internal environment analysis
Current Performance
IndiGo in this 2017 to 2018 annual year has earned 3.6 billion USD as revenue which has
increased by 13.7% in comparison with its revenue in 2017. It has gained 23.1% Increase in
passenger ticket revenue in FY18 Yield is 3.59 which is 2.6% more than the last financial year
(see appendix 1).Indigo’s total cash increased by 46.7% to Rs. 137,082.56 million as of March
31, 2018 (see figure 6). The company’s aircraft ownership cost comprises engine and aircraft
rentals that has increased by 7.7%, employee benefit expenses has increased by 19% and other
expenses by 27.4% from the last annual year (Goindigo.in 2018). It has a 42.1% domestic market
share as of 2018 June in comparison to 38.2% in September 2017 (see figure 8).

11ANALYSIS INDIGO AIRLINES
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
Financial Report IndiGo 2018
(Figure 6. Financial Report IndiGo 2018)
(Source: author’s creation)
Therefore, as the company’s annual report 2018 has stated that the total cash increased by
46.7% and IndiGo has enabled to reduce its debt by 5.5% in this current year. The main
competitors of Indigo airlines are Air India, Jet Airways, Spice Jet and Go Air. All these
companies are fast improving in every aspect by utilizing the external environment present in the
aviation market of India.
Environment in which it competes
The aviation industry of India has registered traffic at a CAGR of 7.08 per cent in the
financial year of 2017. The Indian domestic carrier industry is one of the fastest growing aviation
industries around the globe and can be ranked as the third largest civil aviation market. The
number of air passengers have grown considerably from 14 million at the beginning of the
century to a current rate of 135 million in 2016. It has been estimated that the market shall

12ANALYSIS INDIGO AIRLINES
experience a growth rate to 800 aircrafts by 2020. Moreover, the number of passengers are
expected to increase considerably and the demand for aircraft will touch around 4.3% of the
global volume. Moreover, another facet of the market is that the competition as present in the
market is very fierce in nature.
Figure 7: The freight traffic
Source: Yahoo.com. 2018,
Market activity

13ANALYSIS INDIGO AIRLINES
Figure 8. Indigo’s market shares as of September
(Source: Bureau 2017)
Figure 9: The performance of Indigo shares
(Source: Liveminet.com. 2018)
The market activity and ownership of the shares of the Indigo Airlines can be stated to be
very diverse in nature with around 38.26% of the shares having been owned by the Promoters.
This is followed by ownership of 36% from the side of foreign promoters and the rest of the
shares being owned by the Mutual funds and general public. The airlines company has a market
capitalization of Rs. 34306 crores and as of June, 2018 the company has reported a total investor
income of 28 crores. The management of the company is in the hands of Dr. Anupam Khanna,
Mr.Devadas Mallya, Mr.Rahul Bhatia, Mr.Rakesh Gangwal and Mrs.Rohini Bhatia. The firm has
a total outstanding share base of 384406838 shares.

14ANALYSIS INDIGO AIRLINES
Figure 10: The shareholding structure of Indigo
(Source: Centreforaviation.com. 2018).
Competition analysis
The passenger carrier industry in India is a very competitive industry because of its high
returns and other such factors. The secondary factors can be categorized as follows:
 There exists little scope for expansion which makes the competition cut throat in nature.
 The industry is in a state of maturity with a considerable growth rate and in order to gain
a larger market share, succumbing the rival companies, is the only option.
 The supplier of aircrafts are also same namely, the Airbus and Boeing which makes their
power considerably high and the cost of switching quite low for the customers and this
indicates a lack of brand loyalty.
 The different competitors as present in the Indian airline industry are Jet Airways, Tata
Vistara, Spice Jet, Air Asia, Go Air and others. Their market share has been given in the
following image.

15ANALYSIS INDIGO AIRLINES
Figure 11: The market share of Indian Aviation Market
(Source: Financialexpress.com 2018)
Current strategies of Indigo
The current strategies being adopted by the Indigo Airlines have been stated as follows:
1. The organization ensures that that its average fleet age remains a considerable number of
four years till the year 2032 (Linkedin.com. 2018). This fleet strategy ensures that the
costs of the company are kept low.

16ANALYSIS INDIGO AIRLINES
2. It follows a policy of buy, sell and lease back strategy and in a peak, the airlines has a
maximum of 330 airlines. When their planes are sold at the market, they are leased for a
span of 6 years which ensures that the firm receives a plane every month.
3. In order to curb the fuel problems, the airlines has adopted the efficient A-32- Neo planes
and they result in saving costs (Financialexpress.com, 2018). Moreover, due to the above
strategy, the average fleet age of the planes decrease and this enables a lower cost of
maintenance.
4. It has strategized that by the year 2024, all its flights will be Neos and this will have a
positive impact of 7% on the company profits and also acts as a differentiation strategy as
these plane designs cannot be copied (Ibef.org. 2018).
5. Moreover, it aims to increase its portfolio every year and have a larger presence with
respect to the airports (Yahoo.com. 2018). The airlines adds two to three cities every year
to its basket.

17ANALYSIS INDIGO AIRLINES
Figure 12: The exceptional performance of stocks
(Source: Centreforaviation.com. 2018)
Cost leadership strategy
The generic strategy which is adopted by the organization is the Cost leadership strategy.
Indigo airlines is fairly popular for being one of the cheapest airline brands in India and has
adopted the slogan- No frills. It is a basic airline, which aims to provide affordable pricing
options to the consumers and on time schedules. This strategy has made Indigo the most sought
after option for the public.

18ANALYSIS INDIGO AIRLINES
SWOT analysis:
 Strengths: IndiGo has several years of operation in the aviation market of India thus has
an experience more than many other new entries and strengths to utilize properly.
Positive brand image: IndiGo has a brand image of being one of the most efficient low fare
operators in both the domestic as well as the global market.
Services: the company offers multichannel direct sales, online flight booking, 24/7 customer
support and a user-friendly IndiGo app where the customers can check flight status.
High stakeholder engagement: the employees of the company are provided with stress free
work environment and high efficiency training through real experience of customer service.
Hence it has a highly motivated and self-driven workforce (Walia2018).
Corporate Social Responsibility: the CSR initiative of the airline named Indigo Reach
undertakes several initiatives for the development and wellbeing of the women and children as
well as the environment (Civilaviation.gov.in 2018).
 Weaknesses: the areas need to be improved by the authority of IndiGo
Sustaining profit: IndiGo is a low-cost carrier which mandates that the company must keep its
pricing lower as much as it can be managed so that it can gain the competitive advantage in this
high concentrated aviation market of the country (Nagpal &Saranga 2017).
Over dependence on volumes: for sustaining the profits, IndiGo needs to ensure that the
volumes are always high (Yadav 2017).

19ANALYSIS INDIGO AIRLINES
Safety of the aircrafts: The civil aviation authority of India has made decisions to ground some
of the aircrafts as there were some security issues which affected the company’s trust and
goodwill (Sankaran2017).
Limitation in routes: IndiGo often faces problems with the air routes as the domestic flights
delays or get cancelled as they do not have too many routes which affects the profitability of the
company directly.
International absence: despite the fact that the company has the highest market share in the
domestic aviation market, the international market has remained unexplored (Jung, Kim & Yoo
2018, p. 109).
 Opportunities: the opportunities of Indigo Airlines help to find to the avenues in the
environment which surrounds the business of the company on which it capitalizes for
increasing it returns.
Cargo services and chartered fights services: IndiGo is the most preferred airline by the
customers due to its low price and high quality.
Demand for foreign travels: there has been a surge in the number of Indian passengers to travel
the foreign locations for both pleaser and business (Sharma &Kaur2017, p. 112).
 Threats:
Highly competitive market: IndiGo Airlines though have the highest market share, faces a
tough competition from the reputed brand like Air India, Jet Airways, Spice Jet, Singapore
Airlines and Go Air.

20ANALYSIS INDIGO AIRLINES
Costing: the key components of cost for any airline company is the fuel which has highly
fluctuating cost and in order to manage the pricing in accordance with the dynamics of the fuel
prices in threat today as well as in the future (Purkayastha& Sharma 2016, p.34).
Strategic objectives:
As the data states that the company has been operating in the Indian aviation market and
earned the top position, similarly it has to perform well in the international context (Prabhu
2016).Therefore, it has to operate in an incredible tough trading ambience and compete with
other international airlines so that the Indian customers prefer this company providing the low-
cost yet high quality airline services than its rivals. This is the reason why, it has to have a long-
term vision for business so that this can become one of the most preferred airlines for the
international customers from India (Singh 2016). The strategic of objective of IndiGo for next
three years will have three facets.
 The first one is proving top quality service to the customers on all routes and classes of
travel by improving the online service with a focus on India Gandhi International Airport,
New Delhi;
 key global city growth by continuing to expand the list of top tier cities of the world
through the airline partnership and
 Meeting customers’ need and becoming the airline of choice by exploring the lasts
and best options as well as products so that it can earn the customer loyalty in limited
period of time (Singh, Dalei & Raju 2016, p.120).

21ANALYSIS INDIGO AIRLINES
Identification of the Key value drivers
As stated in the previous section, the objectives of the report are clearly identified and
include objectives like providing top quality service to the different consumers, key global city
growth and meeting the needs of the consumers and thereby becoming the airline of choice. In
order to be able to achieve the objectives, it is important for Indigo to be successfully able to
identify the key value drivers of the business which will help Indigo in the achievement of the
three year long term objective within the span of 2020-2023. Additionally, the organization will
be successfully able to achieve success in the long run and gain a sustainable advantage in the
three year time frame (Taneja, 2017).
The key value drivers which have been identified are as follows:
 Networks: The most important key driver of the airline business is the choice in
networks. Hence, Indigo needs to ensure that it uses the advanced GPRS and Navigation
tools thereby increasing the network security. It needs to ensure that all the airports in the
country where Indigo functions are well connected with one another and that the fastest
network is used. Moreover, it also needs to ensure that its network strategy is different
from that of its competitors and that flying under Indigo is more secure in nature (Lopes,
Ferraz & Rodrigues, 2016).
 Price of the service: The price of the ticket or the service being provided is another key
value driver as a good price base is the main component which attracts the different
consumers in an Airline industry (Calisir, Basak & Calisir, 2016). Hence, Indigo needs to
ensure that the price of the airline ticket needs to be kept competitive in order to ensure a
larger consumer base. In this respect, Indigo can follow a strategy of cost leadership

22ANALYSIS INDIGO AIRLINES
which it has been following since the last few years or it can make use of the strategy of
competitive pricing which will help it to stay ahead of its competitors.
 Products and packages: The different packages and the products which are being sold
by the airline brand, Indigo also act as a key value driver and helps in determination of
the success of the firm in the aviation sector. Hence, Indigo needs to level up its product
strategy in order to ensure that it is successfully able to add certain new destinations
every year and cover a larger portfolio base. As per the rising trend, Indigo can add the
Middle Eastern countries and the countries like Thailand, Malaysia and Singapore under
its basket.
 Customer service and relationships: The customer service and relationships are also
deemed to be of utmost importance and act as a primary value driver in the aviation
sector (Delbari et al., 2016). Hence, Indigo, needs to ensure that it is successfully able to
maintain good relationships with the customers so as to be able to achieve the marketing
strategic objectives. It can engage in this strategy by indulging in Customer Relationship
Management solutions so that each flyer can be made to feel special by the airlines
company.
 Loyalty awards: The customer loyalty needs to be maintained adequately and it is for
this reason, that the organization needs to ensure that it is successfully able to provide
loyalty awards to its customers in order to assist them in choosing the Indigo Airlines as
their choice of airlines (Dolnicar et al., 2011). Free flights, offers, discounts and other
related facilities like unlimited baggage can be provided to the different customers to
improve the loyalty among them.

23ANALYSIS INDIGO AIRLINES
 Distribution strategy: Airline makes use of various distribution strategies like online
booking, direct counter bookings and bookings with travel agency. This way Indigo has a
good distribution strategy in hand which it makes use of (McIvor, O'Reilly& Ponsonby,
2003). However, Indigo can improve this strategy by engaging in channels like mobile
applications or by making extensive use of artificial intelligence.
Action plans to achieve the value driver
Value Driver 1: Network
Key actions involved/ enablers
 Indigo needs to look out for newer facilities to be able to improve the network base
 Make use of better technology to improve network facilities and strength like Navigation
and GPRS
Benefits in line with Strategic objectives
 Indigo will be able to achieve key city growth
 Will be able to provide essential services to the customers and become the airline by
choice.
Measures/ Key Performance Indicators
 Number of flights- increase in the number of flights
 The number of bookings and the increase in their growth rate
 Net profit ratio
 Popularity on social media platforms- can be measured with the help of Analytical tools.
Targets

24ANALYSIS INDIGO AIRLINES
 Expanding the network to at least 15 more cities in India and 5 more international
countries.
 Increasing the revenue by $200000 by 2023.
Time frame
 The given action plan can be achieved in a span of 3 years.
Value driver 2: Distribution
Key actions involved/ enablers
 Indigo needs to ensure that the bookings of Indigo can be made easily by the customers
using online, mobile, direct counter booking and the travel agent channels.
 Make use of better technological solutions to synchronize the bookings and manage the
customers.
Benefits in line with the Strategic Objectives
 Indigo will be able to become the airline of choice and meet the customer needs
 It will be able to provide better services to the customers.
Measures / Key Performance Indicators
 Number of online bookings having been made
 Customer satisfaction Index
 Feedback from customers
 Income from each channel which Indigo has subscribed to in annual terms.
Targets
 Ensuring maximum booking and zero cancellations.

25ANALYSIS INDIGO AIRLINES
 To increase the revenue received from different channels.
Time frame
 The timeframe for the distribution strategy can be taken to be as 12 months
Value driver 3: Price
Key actions involved/ enablers
 Indigo needs to look out for better ways in order to cut down additional costs.
 Make use of better technology to help the company in saving costs and to digitalize the
entire system.
 Indigo needs to outsource the tasks to save costs
 Reducing the redundancy in flight locations and timings in order to ensure that Indigo is
successfully
Benefits in line with the Strategic Objectives
 Indigo will be able to achieve key city growth and will be able to gain customer
satisfaction as well.
 Moreover, it will become more popular for being able to digitalize the entire system
Measures/ KPIs
 Number of flights present
 Costs incurred
 Net profit ratio
 Return on Investment
Targets

26ANALYSIS INDIGO AIRLINES
 To reduce flight prices by 10% due to saved costs
 Increasing the revenue by $100000 by 2023 by saving costs
Time frame
 The given action plan can be achieved in a span of 3 years
Value driver 4: Products and Packages
Key actions involved/ enablers
 Indigo needs to design better packages for its customers
 Use differentiation strategy to imbibe uniqueness.
 Reducing flight hours and less hopping.
 Seeing to it new products are added to the portfolio
Benefits in line with the Strategic Objectives
 Indigo will be able to achieve key city growth by becoming the airline of choice
 Will be able to improve the customer satisfaction
Measures / KPIs
 Number of flights booked
 Revenue incurred
 Return on marketing activities
 Market standing
Targets
 Designing four new routes and adding new destinations
 Ensuring growth of 20% in the operations in the coming 3 years

27ANALYSIS INDIGO AIRLINES
Time frame
 The given action plan can be achieved in a span of 3 years
Value driver 5& 6: Customer service and relationships with Loyalty awards
Key actions involved/ enablers
 Engaging in a continuous feedback and interaction session with the different consumers.
 Designing system of loyalty plans and provide the consumers a chance to win free tickets
 Maintaining a social media account to engage in competitions
 Train the employees to help them to perform better.
 Making use of Customer Relationship Management in order to ensure that each customer
is dealt with personally.
Benefits in line with Strategic Objectives
 Indigo will be able to achieve key city growth and gain customer satisfaction
 Will be able to provide essential services to the customers and become the airline by
choice.
Measures / KPIs
 Return on Investments
 Customer feedback
 Customer satisfaction index
 Popularity on social media platforms
 Increase in sales
Targets

28ANALYSIS INDIGO AIRLINES
 To increase the consumer base by 20%.
 To increase followings on social media platform
Time frame
 The given action plan can be achieved in a span of 1 years
Future Projections
The following future projections have been aimed for by the Indigo management in order to
achieve success in the long run.
 Ensure a growth rate of 20% by the year 2023
 Increase in the number of destinations covered by Indigo
 Increasing the customer base of the organization
 Ensuring higher satisfaction of the customers
 Lastly, the airlines has aimed to increase its marketing activities.
Therefore, from the given analysis and action plan designed, it can be stated that the Key
Value drivers form an essential part of the goal achievement of the organization and that in order
to be able to achieve the strategic objectives of the organization in the long run, Indigo must look
out to achieve these value drivers. Hence, the above section provided the action plan which will
assist in the achievements of the objectives and the time frame (Gantt chart) is being provided in
the following section:
Activity Months
2020
( 6
2021
( 6
2021
(6
2022
( 6
2022
( 6
2023
( 6

29ANALYSIS INDIGO AIRLINES
months) months) months
)
months
)
months
)
mont
hs)
Value driver 1
Value driver 2
Value driver 3
Value driver 4
Value driver 5
Value driver 6
Findings:
From the analysis of the business of IndiGo Airlines it has been established that this
company has a huge experience in operating in the domestic aviation market of India which is
currently flourishing. IndiGo provides high quality service for the lowest price for which it
enjoys high customer satisfaction and revenue than its competitors. However, there are issues
like less product differentiation and availability of routes, high fuel price and competition in the
international market. For these reasons IndiGo needs to have a proper strategic objectives which
focuses on the growth of the company from 2020 to 2023.The third part of the report formulates
certain strategic objectives for the Indigo airlines which are followed by the identification of the
key value drivers. These key value drivers will assist the firm in achieving the objectives and
hence, action plans for each of them with measures and targets with each one of them. A Gantt
chart representing the timeline has also been provided. For entering the international market and
operate there successfully, IndiGo Airlines must follow these measures as these will help it to
overcome odds and utilize all the possibilities.

30ANALYSIS INDIGO AIRLINES
Conclusion:
Therefore, it can be concluded that Indigo has achieved the highest market share in the
Indian market but needs to operate successfully in the international market. For developing the
business in the international market, the company has taken the initiative to provide a top-quality
service to the customers and along with this the company will be developing operations in the
key global cities to cater the demands of the foreign travelers. The action plan has aimed to guide
the company to overcome all the threats associated with the business environment as well as
operation of the firm. This is the reason why the action plan has focused on the six value drivers
like. Thus, the company will be able to enter and sustain the international aviation market.

31ANALYSIS INDIGO AIRLINES
References and Bibliography:
Behera, B 2016, Indian Aviation Industry: Issues and Challenges in Post-Reform Era. Splint
International Journal of Professionals, 3(2), p.58.
Bureau, F 2017, Indigo marketshare rises to 38.2 pct, flies highest number of passengers in
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Appendices:
Appendix1.
Appendix 2.