Spice Jet Case

Analysis
Submitted By
33 Manika Rohra 15216
34 Simran Jena 15217
35 Sitesh Parida 15218
36 Manoj Kumar 15219
37 Abhinav Khare 15220
38 Neelam Kumari 15221

Vision & Mission

Vision:
To be a low cost carrier with excellent service
and enhancing stake holders value.
Mission:
Indias preferred airline with highest
consumer value through honest and ethical
conduct of business.

Red Ocean Strategy

Spice Jet was trying to revive itself in order to

compete in the existing market (competitors being

Go Air, Air Costa, Air Asia, etc).
It wanted to beat the competition by maximizing its
efficiency in the following ways:
Concentrating on the profitable routes
Flying to international routes but did not exceed 4

hours of flying time

It was more focused on the punctuality of its flight

and cheap air tickets in order to meet the existing

demands of the consumers
It wanted to follow a low cost strategy by minimizing
the unit cost so as to sustain and gain market share
as they were into deep losses

Porters Five Forces Model

Negatives
Spice-Jet plans to raise a low-cost debt of Rs

300 crore as part of recapitalisation.

Adding seven and returning three leased
Boeing planes by October.
SpiceJet Q1 net highest-ever at Rs 72cr.

Q1. Do you think, all the signals point to a failure of

the company's strategy? If
Yes, why and if not why not?

Q2) Whether Ajay Singh new leadership

team will succeed or not? Justify.

Q3) Based on your analysis do you think Ajay Singh will be able
to nurture Spice Jet to good health? What are your expectations
of the results to beannounced for 2nd quarter of F.Y 2015-2016?

Q4) Do you think Spice Jet will be able

to turn a new leaf in 2015-2016 by
adopting strategy of focusing on
efficiency? Even though the company
will have to battle with existing players
like Indigo, Go Air, Air Asia, Jet Lite,
Air Costa who pursue volumes over
margins? Justify your answer

Q5) Can the new entrant Turbo Aviation with its brand
TrueJet alter Spice Jet
fortunes?