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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 .

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The current scenario : Analyzing the PRESENT .

SWOT Analysis .

Porter’s 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 .

for long term fixed price contracts • Ordering of all the aircrafts from the same manufacturer – Quantity : 150 • Increase ancillary revenues by increasing cargo. . etc. 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. on board sales.Recommendations Mergers and Acquisitions Strategic Alliances Operational Activities • Not required now .

everybody loses. Pricing strategies will take care of this. with the application of seasonality considerations.“Nobody wants to lose out. It's a race to the bottom. . exCEO SpiceJet Pricing simulation and on time service are the two main bones of contention. But when everybody starts discounting tickets. 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. No airline wants its flight to fly vacant. This will help in increasing the stock market position and also the working capital position.” -Sanjiv Kapoor.

Usage of Online Platform .

Atmuri Hema Supriya (15F111) Thank You Indrajeet Dawle (15F420) KV Navya (15F427) Priyesh Shah (15F434) Raunak Rajesh Bhimani(15F437) .