Corporate strategy.

INDUSTRY ANALYSIS OF
INDIAN AVIATION.

By
1.Abhishek Gupta 2018007690
2.Aryan kumar 201807787
3.Gaurav Khokher 2018009125
4.Malik Musharaf Abrar 201800781
5.Jalil kakroo 2018004898
 MACRO ENVIRONMENT
• The market environment or business
environment is a marketing term and refers to
factors and forces that affects a firm ability to
build and maintain successful customer
relationships.
• The Pestel Analysis is employed to identify
macro-environment influences of the airline
industry.
 .
• Political: Government wants to strengthen the
economy and, consequently, will support local
airlines by setting rules, such as preferential
rights.
• Economic: This is identified as the most crucial
factor to airline companies, especially to budget
airlines. The influences refer to the
macro-economic factors such as the national
growth rates and the exchange rates. As budget
airlines, they will pay more attention to the
operation costs such as fuel cost.
• Social: With the development of Asian
countries in particular China, there are more
and more people deciding to study or travel in
Europe.
• Technological: The innovation of technology
helps the airline companies reduce costs and
carry out tasks more effectively.
 .
• Environmental: European countries pay more
attention on environmental issues, especially
greenhouse gases from carbon emissions.
Moreover in terms of the case, airline
companies have to pay the environmental
taxes for the contributions they make to
global warming
EVOLUTION OF THE AVIATION
INDUSTRY
EVOLUTION AND GROWTH OF THE
AVIATION INDUSTRY.
Aviation in India, broadly divided into military and civil
aviation, is the fastest-growing aviation market in the world
according to the International Air Transport Association
(IATA). The hub of the nation's aviation manufacturing
industry is at Banglore which has a 65% share of this
economic sector. The government's UDAN (regional
connectivity scheme) is driving the growth of civil aviation
and aviation infrastructure in India
.India had the world's third-largest civil aviation market in 2017.
. It recorded an air traffic of 131 million passengers in 2016.
 .
The IAF is the world's fourth-largest air force. In
2015, Flightglobal estimated that it had 1,820
aircraft in service: 905 combat planes, 595 fighters
and 310 attackers.The defence sector – consisting
chiefly of IAF and state-owned HINDUSTAN
AERONAUTICS LIMITED (HAL) – are developing
numerous indigenous fighter aircraft and new
technologies for the aviation industry. These efforts
produced the HF-24 MARUT and HAL Tejas
supersonic fighters.
IS INDUSTRY ATTRACTIVENESS:
PORTER’S MODEL
 PORTERS 5 MODELS
1.COMPETITION IN THE INDUSTRY.
2.POTENTIAL OF THE NEW
ENTRANTS IN THE INDUSTRY.
3.POWER OF SUPPLIERS.
4.POWER OF CUSTOMERS.
5.THREAT OF SUBSTITUTE
PRODUCTS.
 BARGAINING POWER OF BUYERS
• Buyers in airlines industries is large in no. and
highly fragmented , thus lowering their power
with the growing Indian economy.
 Availability of the substitutes
• Many customers use airlines as a status
symbol. So if we consider Indigo airlines, the
direct substitute are the other low cost carrier
like Spice Jet and Go Air.
 BARGAINING POWER OF SUPPLIERS
• Indigo fleet compromise of Airbus-320 and the
switching cost is high due to the limited
number of the suppliers.
• The brand value of the suppliers is high due to
their less number and results in higher
bargaining power for them.
 COMPETITIVE RIVALRY

• Suppliers of aircrafts are the same i.e Boeing

and Airbus. Hence suppliers bargaining power
is high.
• Very little scope for differentiation between
competitors product and services.
VALUE CHAIN OF INDUSTRY
 DIGITALISATION OF THE AVIATION
INDUSTRY
• In the aviation sector today ,an effective digital
strategy is critical for long.
• The role of the digital technology has changed
from being a source from being a source of
marginal efficiency gains to becoming the
foundation for transformation and increasingly
companies are recognizing the need to innovate
both to stay ahead of legacy competitors and to
pre-empt the disruption of the established
business models by ambitious and humble digital
natives.
 THEMES OF THE DIGITAL DIGTAL
TRANSFORMATION I THE AVIATION
SECTOR
• 1. REDESIGN CUSTOMER INTERACTION
• 2.BUSINESS SYSTEMS AND PROCESS
• 3.NURTURING INNOVATIONS
• Thus aviation industry is going through an era
of transformation using digital technology to
improve efficiency and safety , reduce costs
and provide the best possible experience for
the passengers.
 INDUSTRY LIFE CYCLE
• The life cycle of the stages of aviation industries break
down as follows :
• 1.Stage of design
• 2.Stage of definition
• 3.Stage of development
• 4 Stage of production
• 5.Stage of testing
• 6.Stage of operation
• 7.Stage of support
• 8.Stage of modernization
• 9.Stage of decommissioning
 KEY SUCCESS FACTORS OR THE
CRITICAL SUCCESS FACTORS OF THE
AIRLINE INDUSTRIES
• SECRETS TO THE SUCCESS IN THE AIRLINE INDUSTRIES ARE
AS FOLLOWS:
• SECRET NUMBER 1 – STICK TO WHAT YOU ARE GOOD AT
• SECRET NUMBER 2 – KEEP IT SIMPLE
• SECRET NUMBER 3 – KEEP FARES LOW , COSTS LOWER
• SECRET NUMBER 4 – TREAT CUSTOMERS LIKE GUESTS
• SECRET NUMBER 5 – NEVER STAND STILL
• SECRET NUMBER 6 – HIRE GREAT PEOPLE
• SECRET NUMBER 7 – DEAL WITH PEOPLE VERY CAREFULLY
 ANALYSING COMPETITORS :
BRIEF ABOUT MAIN
COMPETITORS-THEIR WEAKNESS
AND STRENGTHS
.There are many competitors as far the aviation
sector is concerned.
.And keeping in view the weakness and
strength of the competitors is very important.
Strengths of the competitors
include :
High Income

One thing we all know that airlines are one of the profitable companies, and their income level must be
very high.

Continued Growth

If we look at the graph of airline growth, then except for a few downturns, it has been moving upward
consistently. It is due to the number of factors like growth in population, and increased businesses.

Safe & Speedy

One thing that we all agree on that airplanes are the fastest mode of transportation. But when it comes to
safety, aviation engineers are working on the research and development to make it the safest
transportation mode.
 WEAKNESS OF THE COMPETITORS
Slow Rate of Infrastructure

Slow infrastructure is the major problem in the airline industry. If you look at the technological
development, the engineers are building new big and sophisticated airplanes. But on ground infrastructure
is the same old airports.

High Spoilage Rate

Spoilage rate means that the passengers miss their flights. If the passengers miss their flight, then they
would have to refund their fare, and the company would losses the income. If you compare the spoilage
rates with other transportation means, then it’s very high among airlines.

Competitive Market

The airline industry is also getting very competitive. In the off-seasons, small airline companies have to
reduce the traveling fare.
 OVERALL SCENARIO FOR THE
INDUSTRY IN THE NEAR FUTURE
.On January 15, 2019, the Ministry of Civil Aviation (MOCA)
released a report titled ‘Vision 2040’, outlining a roadmap for the
future of civil aviation in India. The report projects that air
passenger traffic will increase six-fold to 1.1 billion passengers by
2040 and by then 2,359 passenger aircraft would be required. Air
cargo movement will quadruple to 17 million tonne by 2040. The
number of airports in India would rise to around 200. The
government proposed creating a $2-billion fund to help support
low-traffic airports. India targets to establish an aircraft
manufacturing base by 2040.
.The government will build 100 new airports by 2024 to improve regional
connectivity and corporatise a major port that will be later listed, finance
ministers
 ANY OTHER ASPECT THAT WE
CONSIDER RELEVANT.
AEROSPACE ENGINEERING
AIR TRAFFIC CONTROL
AVIATION MANAGEMENT
AVIATION SAFETY
CABIN CREW
CIVIL AND MILITARY AVIATION
PILOT TRAINING
AVIATION MAINTENANCE
KEY RESOURCES OF PLAYERS TAHT
GIVES THEM COMPETITIVE
ADVANTAGE
As far as the aviation industry is concerned A competitive
advantage may include access to natural resources such
as low-cost power source, highly skilled labor, geographic
location, high entry barriers, and access to new
technology.
Competitive advantage is the leverage a business has
over its competitors. This can be gained by offering clients
better and greater value.
The 5 competitive advantages of Airline industry are as
follows :
1. Boost your marketing efforts through effective
personalisation
 .
2. Good advertising is a resource which can be
used for competitive advantage.
3. Offer the right price at the right time through
Revenue Management.
4. Guarantee air safety and stay ahead of
airplane maintenance.
5. Launch digitalization and boost operational
efficiency