SpiceJet : The Strategic

As we unfol

The Presentation
Looking over the horizon of 20 year period
10 years of past, 10 years of future
Using models to analyze the present and future with the help of past data,
facts and happenings
Recommendations based on the analysis carried out

Backdrop : A look into the

PAST

The current scenario : Analyzing the

PRESENT

SWOT Analysis

Porters Five Force Theory

Threat of new
entrants

Bargaining
power of buyers

Bargaining
power of
suppliers

Threat of
substitutes

Threat of
Competitors

LOW

HIGH

HIGH

LOW

HIGH

Capital intensive
industry

Low switching
costs

Fuel supply
limited

Indian Railways

Increased price
competition

Long gestation
period

Low price
elasticity

Leased aircrafts

Commodity type
of service

Limited number of
manufacturers

Universe of
customers high
&
resources
moderate

Clearances

PEST Analysis
Political

Economical

Social

Technological

Bureaucracy

Taxes and tarif

Lack of skilled
manpower

Night landing facilities

and weather concerns

Clearance for various

international routes

International issues of
fuel import

Women employment done

Capital intensive
technology

Lobbying

Pricing strategy

Maintenance issues

Social factor - Addressed

Economic factor Needs to be addressed

VRIO Analysis
Resources
Financial

Valuable
Yes

Rare

Difficult to

Exploited by

Competitive

Yes

imitate
Yes

organization
Yes

Implications
Sustained

resources

competitive

Human

Yes

No

advantage
Competitive Parity

Yes

No

Competitive Parity

Yes

Yes

No

Temporary

resource
Physical
Resource
Operationa
l Choices

Competitive
Advantage

Governme
nt

Firm structure,
strategy and
rivalry

Diamond Model Analy

Factor
conditions

Demand
conditions

Related and
supporting
industries

Governme
nt

The Next Steps: Future

Strategies (10 yrs)
SWOT

PEST

VRIO

Futur
e
Porter
s
Diamo
nd

Financial analysis in the FMT 2 assignment to

facilitate and strengthen our Strategic analysis
base
Newspaper reports

Porter
s Five
Force

From interviews of the COO, CEO, stock market

experts

BCG Matrix
Present position of SpiceJet
Cow
Earnings stable till the last
month
Cash flow expected to be
good
Strategy Discussed in further
slides
Desired position Star

Recommendations
Mergers and
Acquisitions
Strategic
Alliances
Operational
Activities

Not required now , time to strengthen management

Lowering the attrition rate among top level employees who
have great work experience
With IRCTC, waitlist passengers
With national food chains
With regular maintenance, for long term fixed price contracts
Ordering of all the aircrafts from the same manufacturer
Quantity : 150
Increase ancillary revenues by increasing cargo, on board
sales, etc.

Nobody wants to lose

out. But when
everybody starts
discounting tickets,
everybody loses. It's a
race to the bottom.
-Sanjiv Kapoor, exCEO SpiceJet

Pricing simulation and on

time service are the two
main bones of
contention.

No airline wants its flight to fly

vacant. Pricing strategies will
take care of this, with the
application of seasonality
considerations.

Booking
ahead of
time
Retaining
market
share

Cash flow
managemen
t

A rupee in hand today is

worth more than a rupee
in hand tomorrow. This
will help in increasing
the stock market
position and also the
working capital position.

Usage of Online Platform

Atmuri Hema Supriya

(15F111)

Thank You

Indrajeet Dawle (15F420)

KV Navya (15F427)
Priyesh Shah (15F434)
Raunak Rajesh
Bhimani(15F437)