Value Chain Method for Indigo Airlines.

 Primary Activities
Inbound Logistics

These activities of Indigo Aviation are associated with receiving, storing and disseminating
the inputs of the products. It can include warehousing of physical products, material
handling, as well as architecture to receive and store customer information for digital media
company. Indigo Aviation at present has outsourced most of its inbound logistics activities.

Operations

Activities that help the organization to transform raw material into finished products. For
the purpose of this article the definition is broad – it can mean moulding plastic to make
products, using customer data to serve advertisements based on usage behaviour to clients
etc.

Outbound Logistics

Indigo Aviation under takes these activities to distribute the finished products to channel
partners and final buyers. Outbound logistics activities include – warehousing, scheduling,
wholesalers and retailers order fulfilment, distribution network, and processing.

Marketing and Sales

These activities are undertaken by Indigo Aviation to create means through which the buyer
can buy a firm’s products. These activities include – marketing, sales force management,
advertising and promotion, pricing, channel selection etc.

Services

Indigo Aviation needs to provide after sales services and maintenance for successful usage
of the product. Service activities of Indigo Aviation can include – training, part supply, post
sales maintenance, installation services, and product forward and backend alignment of
software.
Support Activities 
Firm Infrastructure

Firm infrastructure support activities at Indigo Aviation consists activities such as – finance
and accounting, planning, quality management, legal services and general management.
Firm infrastructure activities at Indigo Aviation supports entire value chain though the scope
varies given that Indigo Aviation is a diversified company even within the industry. For
example, the finance and planning at Indigo Aviation are managed at corporate level while
quality management, accounting and legal issues are managed at business unit level.

Human Resources Management

In an environment where each organization is striving to become a learning organization,

Human Resources Management is key to the success of any organization. HRM support
activities include – Recruiting, Selection, Hiring, Skill Assessment, Training & Development,
People Planning and Compensation at both business unit level and corporate level.
Human resource management affects competitive advantage in any firm, but in some
industries, it is defining factor. For example, in the consulting companies HR is the main
source of competitive advantage.

Technology Development

Technology supports almost all activities in modern day organization. In the technology
industry, technology development has become a source of competitive advantage.
Technology development at Indigo Aviation may include activities such as - component
design, technology selection, process engineering, feature design, and field-testing.

Procurement Activities at Indigo Aviation

Procurement activities at Indigo Aviation include activities that are undertaken to purchase
inputs that are used by Indigo Aviation’s value chain. It doesn’t include purchase inputs
themselves. Purchased inputs may include - raw materials, supplies, machinery, laboratory
equipment, office equipment, and buildings.
Like all other value chain activities procurement also employs technology for things such as
– procedures, vendor management, information system, and supply chain partner
qualification rules and ongoing performance evaluation.
Generic Growth Strategy
Cost leadership
This strategy allows Indigo Airlines to expand the market share by targeting the middle class,
which makes the largest proportion of overall consumer market mix in most of the
countries. Middle class consumers generally place high importance to the pricing factor and
cost leadership is the best strategy to cater the needs of this consumer segment.
Indigo Airlines focuses on affordability and easy accessibility of its produce across the globe,
which leads towards high brand awareness and high sales growth and provides a strong
competitive advantage basis.

Differentiation
The adoption of differentiation as a secondary generic strategy allows Indigo Airlines to
expand the customer base by emphasizing over the unique product features. Through
differentiation generic strategy, Indigo Airlines positions its product offerings in a way to
stand out and be different from the available alternatives. Being the experienced brand with
strong foothold, the company uses differentiation as a tool to reduce the pressure by other
brands. Heavy investment in marketing, advertisement and celebrity endorsement is made
just to differentiate the Indigo Airlines from other brands.

Focus
Indigo Airlines adopts the focus strategy both in terms of low cost and offering the best
value. The low-cost focus strategy is adopted by serving the needs of a niche market
segment at the lowest possible price. While, best value focus strategy is adopted by
emphasizing over the taste, size and design of the product that could best match the
customers’ needs and requirements. By focusing on product attributes, Indigo Airlines
revises its branding strategies and brings continuous changes in the product designing and
packaging to satisfy the customers’ psychological expectations and maximize value for
money.