Previously we looked into the enthralling SWOT Analysis of Delta, one of the world’s leading airlines in the United States. In this case study, we will analyze the SWOT Analysis of IndiGo Airlines.
One of the most affordable airlines in India – IndiGo Airlines is the fourth-largest carrier in Asia. The airlines became the largest Indian carrier by passenger market share in 2012 crossing 64 million customers in the year 2019.
The biggest reason behind the successful growth of this company is the effective implementation of marketing strategies. So, any company needs to stay digital today. So, if you’re interested in keeping up with the latest developments, – check out Free Masterclasses on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before starting with the SWOT analysis of IndiGo Airlines, let’s look into the company’s history, products, and close competitors to get a better understanding.
About IndiGo Airlines
IndiGo Airlines is headquartered in Gurgaon, India. Its main goal is to become the largest, fastest and no. 1 company. Offering the best service and providing high-quality service at a low cost. Rahul Bhatia of Interglobe Enterprises and Rakesh Gangwal both NRI based together founded a private company in the year 2006, that is IndiGo Airlines.
Nearly after one year of placing the order they received their first Airbus on 28th July 2006, it commenced its operations by 4th August 2006. IndiGo Airlines became India’s largest airline by August 2012. Also, the company went public in November 2015.
|Founder||Rahul Bhatia & Rakesh Gangwal|
|No. of Employees||23,711+|
|Market Cap||$9.97 Billion (2021)|
|Annual Revenue||$2.1 Billion (2021)|
|Net Income/ Profit||$770 Million (2021)|
Services of IndiGo Airlines
- Air Transportation
- Online Booking
- Pick Up & Drop Services
- Mobile Booking
- Special meals and mid-flight snacks
- Beverage selections
Competitors of IndiGo Airlines
- Copa Airlines
- SAS (Scandinavian Airlines)
- Norwegian Air Shuttle
Now after knowing IndiGo Airlines briefly, let’s begin with the SWOT analysis of IndiGo Airlines.
SWOT Analysis of IndiGo Airlines
By studying the SWOT analysis of IndiGo Airlines we can identify the company’s strengths, weaknesses, possible opportunities, and threats. It’s an excellent tool to understand a company’s strong points, its shortcomings, what areas it can excel in, and what are its threats.
From the SWOT analysis of IndiGo Airlines, let us first begin by understanding the strengths of IndiGo Airlines.
Strengths of IndiGo Airlines
Strengths indicate what a company excels at and what sets it apart from the competition and how it’s unique in the market. Let’s see what are the strengths of IndiGo Airlines:
- Positive Image: IndiGo Airlines works effectively providing high-quality service with low travelling costs. People choose IndiGo Airlines for the service, cost and constant offers provided by IndiGo Airlines.
- Services: It provides various services that make it easier for customers like: online booking, 24 hours customer support, online flight status checking.
- High Stakeholders Engagement: IndiGo Airlines has a high employee satisfaction rate and it is very transparent to its customers and provides accurate information. They communicate often with their customers and work on customer feedback and the satisfaction of customers.
- Corporate Social Responsibility: IndiGo Airlines not just focuses on business but also participates in social activities through IndiGo Airlines reach, which will benefit the society and the rural areas in upliftment, child education, women empowerment and environmental activities.
- Fleet Strategy: The airline has ensured to purchase its fleet at prices much lower than the actual price that the seller would sell for. This has helped IndiGo Airlines maintain its low costs consistently.
Weaknesses of IndiGo Airlines
- Sustaining Profits: IndiGo Airlines has been termed as a low-cost carrier, as a result, it has to lower the cost of travelling. Due to this reason IndiGo Airlines was unable to generate and sustain profits consistently.
- Over-dependence on Volume: In order to sustain the profits of the company, they should ensure that volumes are high and the business cannot be affected by fluctuations of the demand. The company has to invest more and take measures to manage even during unexpected situations like pandemics, where business goes low. Also must focus on reserves.
- The Grounding of Aircraft: When the incident of the safety of Pratt and Whitney aircraft became questionable, the Civil Aviation Authority, had to decide to ground these aeroplanes brought by IndiGo Airlines. This scandal has affected business operations and goodwill.
Opportunities for IndiGo Airlines
- Growing Demand for Foreign Travel: In today’s generation we have seen people travelling to various foreign countries either for business, education or for holiday. So the demand for foreign travel is huge.
- Globalization: Since there is demand for travel to foreign countries. IndiGo Airlines has a growing opportunity and it increases the network as there is international travel.
- Increase the Demand: The business can make use of the chance by establishing various interactive digital platforms for marketing IndiGo Airlines business and gaining maximum customers.
Online advertising activities of IndiGo Airlines are accomplished by highly skilled professionals who are creative and well versed with digital marketing skills and techniques. These skills are made for smart people like you who can establish a career in digital marketing and find the right job opportunity that will suit your needs.
- Increasing Partnership: Partnerships with international players and trying to reach newer & unexplored destinations have helped IndiGo Airlines to expand its reach worldwide.
- Increase in Domestic Tourism: Since IndiGo Airlines has a low cost for travelling, the middle class and lower middle class will also access the airways which increase the demand.
Threats to IndiGo Airlines
- High Competition: IndiGo Airlines have a series of competition in domestic and worldwide competitors who alter according to the customer’s choice and preferences. This might affect the business of IndiGo Airlines.
- Costing: The main expense of the aeroplane is the cost of fuel. The prices keep fluctuating every day, and IndiGo Airlines charges low prices for travelling, managing these expenses is a serious threat.
- Pandemic Situations: The aviation industry has seen a dramatic drop in demand for air transport from passengers due to the COVID-19 pandemic. Many people’s jobs in the air transport sector were at stake during a pandemic.
- Terrorist Attack: The threat posed by terror groups hangs over all airlines as well as aeroplane manufacturers.
- Government Regulations: Emission regulations and many other government rules directly or indirectly affect the airline company.
This ends our extensive SWOT analysis of IndiGo Airlines. Let us conclude our learnings below.
IndiGo Airlines is a premium airline with high service quality and operated globally through strategic alliances. Despite some ups and downs to date, the company has received overall good customer feedback. Many passengers praise the various onboard services and other perks offered to the regular customers.
IndiGo Airlines is continuously trying to maintain a positive brand image and attract more customers through social media management, advertising via TV commercials, and digital marketing, as everyone is present on digital media nowadays. Do you also want to learn digital marketing? Then check out this 3 Months Advanced Digital Marketing Course by IIDE. As everything is shifting online, this course can be beneficial if you are interested.
We hope this blog on the SWOT analysis of IndiGo Airlines has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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