External Factor Evaluation Matrix

Key External Factors Weight

Opportunities
• Innovation in keeping up pace with global airport standards 0.10
• Upgrade to faster and better services at airport and customer handling 0.10
• Faster Response from Internal Shared Services 0.03
• Strive for automation 0.06
• Expand towards better international connectivity 0.25
• Improvement in training of Cabin Crew 0.10
• Improvement in Quality Feedback of all Functional Domains 0.08
Threats
• Rise of Cheaper Competitors in Airline Industry( Spice Jet and Go Air) 0.15
• Current economic Situation of GST and impact on ticket pricing 0.05
• Scarcity of Pilots 0.06
• Fluctuating ATF(Air Turbine Fuel) 0.02
TOTAL 1.00
 4: Response is Superior
Rating Score
3: Response is above average
2: Response is average
2 0.2 1: Response is poor
2 0.2 S
1 0.03 T
3 0.18 A
4 1 G
E
2 0.2
2 0.16 1

3 0.45
2 0.1
3 0.18
2 0.04
- 2.74
 Competitive Performance Matrix(CPM) - STAGE 1
Parameters Godrej Industries HP adhesive Galaxy Surfacta

Critcial Success Factors Weights Rating Score Rating Score Rating Score

Brand 0.03 4 0.12 4 0.12 3 0.09

Market Share 0.40 4 1.6 2 0.8 3 1.2
Product Integration 0.04 3 0.12 3 0.12 2 0.08
Management Competancy 0.03 4 0.12 2 0.06 1 0.03
Diversification 0.03 3 0.09 2 0.06 2 0.06
Low Cost Structure 0.04 4 0.16 2 0.08 3 0.12
Customer Loyalty 0.03 3 0.09 2 0.06 3 0.09
Online Presence 0.01 2 0.02 1 0.01 2 0.02
Technological Competanc 0.01 3 0.03 2 0.02 2 0.02
Customer Services 0.08 4 0.32 2 0.16 2 0.16
Product Quality 0.10 3 0.3 4 0.4 2 0.2
Skilled Workforce 0.03 3 0.09 4 0.12 2 0.06
R&D 0.05 4 0.2 4 0.2 3 0.15
Financial Position 0.05 4 0.2 2 0.1 3 0.15
Organization Culture 0.02 3 0.06 2 0.04 2 0.04
Distributors 0.05 3 0.15 2 0.1 2 0.1
TOTAL 1.00 - 3.67 - 2.45 - 2.57
TAGE 1
Asrti Surfactan Vishnu Chemical

Rating Score Rating Score

4: Major Strength
2 0.06 3 0.09 3: Minor Strength
2 0.8 3 1.2 2: Minor Weekness
1 0.04 4 0.16 1: Major Weekness
1 0.03 4 0.12
2 0.06 3 0.09
2 0.08 1 0.04
1 0.03 2 0.06
1 0.01 3 0.03
2 0.02 3 0.03
1 0.08 2 0.16
2 0.2 3 0.3
2 0.06 3 0.09
2 0.1 4 0.2
2 0.1 2 0.1
2 0.04 1 0.02
1 0.05 3 0.15
- 1.76 - 2.84
 Internal Factor Evaluation Matrix

Key Internal Factors

Strengths
• Customer Centric Business Model
• Hassle Free Service
• Low Fares- Best LCC
• Always on Time – Less delays in flying
• Ensure cost leadership strategy
• Operational Efficiency is high
Weakness
• Rise of Cheaper Competitors in Airline Industry( Spice Jet and Go Air)
• Lack Product Depth
• Less exposure to International Market
• Untapped Domestic Cargo Market
TOTAL
atrix
4: Major Strength
Weight Rating Score
3: Minor Strength
2: Minor Weekness
0.28 4 1.12 1: Major Weekness
S
0.07 4 0.28
T
0.07 4 0.28 A
0.07 4 0.28 G
0.15 4 0.6 E
0.07 4 0.28
1
0.15 1 0.15
0.05 2 0.1
0.05 1 0.05
0.04 1 0.04
1.00 - 3.18
EFE IE Matrix
Score
4 Strong Average Weak

I II III
High
3
2.74
IV V VI
Medium

2
VII VIII IX
Low

14 3.18 3 2 1
IFE Score
Build & Grow Integration Strategy, Mkt Penetration,
Mkt Development, Product Development
Hold & Maintain Mkt Penetration, Product Development

Harvest or Divest Retrenchment, Divestiture

 OPPORTUNITIES

TOWS • Innovation in keeping up pace with global airport standards

• Upgrade to faster and better services at airport and customer
handling
MATRIX • Faster Response from Internal Shared Services
• Strive for automation
STAGE 2 • Expand towards better international connectivity
• Improvement in training of Cabin Crew
• Improvement in Quality Feedback of all Functional Domains
• Customer Centric Business Better User Experience must be obatined by means of giving hassle free
Model service even at the airport operations(O2S2)
S
T
R • Hassle Free Service The low fares LCC concept must be implemented at the international level to
E garner better outputs(O4S3)
N
G • Low Fares- Best LCC
T
H • Always on Time – Less
MAX MAX Strategy
delays
• Ensurein cost
flying
leadership
strategy
• Operational Efficiency is high
• Rise of Cheaper Competitors
in Airline Industry Rise of Cheap competition could be done away with by automation(W1O3)
W
E
A • Lack Product Depth Lack fo product depth could be improved by expansion
K internationally(W2O4)
N
E • Less exposure to International Less exposure globally can be delat with expansion over international market;
S Market Air india Acquisition plan(W3O4)
S
• Untapped Domestic Cargo
MIN MAX Strategy
Market
 OPPORTUNITIES THREATS

ion in keeping up pace with global airport standards • Rise of Cheaper Competitors in Airline
Industry( Spice Jet and Go Air)
e to faster and better services at airport and customer

Response from Internal Shared Services • Current economic Situation of GST and impact on
or automation ticket pricing
towards better international connectivity • Scarcity of Pilots
ement in training of Cabin Crew • Fluctuating ATF(Air Turbine Fuel)
ement in Quality Feedback of all Functional Domains
As Indigo has customer centric model and gives hassle free service at
Experience must be obatined by means of giving hassle free
low costs/without delay it will be able to resist competitive
n at the airport operations(O2S2)
threat(S1T1)

es LCC concept must be implemented at the international level to

er outputs(O4S3)

MAX MIN Strategy

MAX MAX Strategy

Lack of product depth due to fluctuating price of ATF and current

ap competition could be done away with by automation(W1O3)
economic Situation. So action plan needed(W2T2,4)

oduct depth could be improved by expansion Untapped cargo and weak international leading to less pilots and
ally(W2O4) more competion. Action plan needed(W3,4T 1,3)
ure globally can be delat with expansion over international market;
cquisition plan(W3O4)
MIN MIN Strategy
MIN MAX Strategy
IndiGo --> STAR Relative Market Share

BCG-Stage 2 High Low

H
M
k i
STARS QUESTION ?
t g
h
G
r
o
w L
t o CASH COW DOGS
h w
SPACE Internal Strategic Position External Strategic Position
Competitive Advantage(CA) Industry Strength(IS)
(-6 Worst,-1 Best) (+1 Worst, +6 Best)
-2 Product Quality 3 Entry Barriers
-1 Market Share 5 Growth Potential
X Axis
-1 Brand & Image 6 Access to financing
-2 Prod Life Cycle 5 Consolidation
-1.5 Average 4.75 Average
TOTAL X AXIS Score: 3.25
Financial Strength Environmental Stability
(+1 Worst, +6 Best) (-6 Worst,-1 Best)
5 Return -4 Inflation
4 Leverage -2 Technology
Y Axis
6 Liquidity -4 GST
6 Cash Flow -4 Demand Elasticity
5.25 Average -3.5 Average
TOTAL Y AXIS Score: 1.75
 4
Conservative Aggressive
3

2
1.75

1
0 3.25
-3 -2 -1 1 2 3
1

3
Defensive Competitive
4

Aggressive: Integration Strategy, Intensive Strategy

Conservative: Intensive Strategy (Only related diversification)

Defensive: Retrenchment, Divestiture, Liquidation

Competitive: Forward Integration, Backward Integration, Horizontal Integration, Mkt Penetration,

on, Mkt Penetration, Mkt Development, Product Development
 QSPM (Quanititative Strategic Planning Matrix) for IndiGo Airlines
Option 1 Option 2
Key Factors Acquiring Air India Domestic Expansion
International Ops
Weights Score TAS Weights Score TAS
Strengths
Unique Service 0.11 3 0.33 0.07 2 0.14
Customer Centric Biz Model 0.15 4 0.6 0.13 2 0.26
Low Costs 0.12 4 0.48 0.15 2 0.3
Opertaional Efficiency 0.1 4 0.4 0.06 2 0.12
Weakness
Untapped Cargo Market 0.15 2 0.3 0.25 4 1
Lack product Depth 0.13 3 0.39 0.12 2 0.24
Negative Sense of Globalization 0.12 2 0.24 0.05 2 0.1
Marketing and Financial Issues 0.12 2 0.24 0.17 2 0.34
Opportunities
Increased Market Growth 0.15 4 0.6 0.15 2 0.3
Diversfied Sales 0.17 4 0.68 0.12 3 0.36
Organizational Culture 0.12 3 0.36 0.1 2 0.2
Alliance or Memberships 0.13 4 0.52 0.13 2 0.26
Threats
Price War 0.15 2 0.3 0.2 3 0.6
Competitor Oligopoly 0.13 3 0.39 0.15 3 0.45
Pilots Scarcity 0.15 2 0.3 0.15 3 0.45
Total Attarctiveness Score 6.13 5.12
Strength+ Weakness =1

4: highly attractive
3: reasonable attractive
2: somewhat attractive
1: not attractive
Opportunity+ Threats =1
Divisions Revenues % Revenue Profits % Proft % Mkt Share
1 60000 37 10000 39 80
2 40000 24 5000 20 40
3 40000 24 2000 8 10
4 20000 12 8000 31 60
5 5000 3 500 2 5
165000 100 25500 100
% Growth Rate
15
10
1
-20
-10
 1 0.5 0
Relative Market Share

20 BCG High Low

H
M 1 2
i
k STARS QUESTION ?
t
g
h
0 G 3
r
o
w L
t o CASH COW DOGS
h w
-20
Question Mark Market Penetration, Mkt
Development, Product
Development, Divestiture

Stars Market Penetration, Mkt

Development, Product
Development, Forward
Integration, Backward
Integration, Horizontal
Integration

Cash Cows Product Development,

Diversification,
Retrenchment, Divestiture

Dogs Retrenchment, Divestiture,

Liquidation
Divisions Sales % Sales Profits % Proft IFE Score EFE Score
1 100 25 10 50 3.6 3.2
2 200 50 5 25 2.1 3.5
3 50 12.5 4 20 3.1 2.1
4 50 12.5 1 5 1.8 2.5
400 20
EFE IE Matrix
Score
4 Strong Average Weak

I II III
3

IV V VI

2
VII VIII IX

14 3 2 1
 High

Medium

Low

IFE Score

Build & Grow Integration Strategy, Mkt Penetration,

Mkt Development, Product Development
Hold & Maintain Mkt Penetration, Product Development

Harvest or Divest Retrenchment, Divestiture

Segments Revenue % % Proft IFE Score EFE Score
Western 31 25 3 2
Central 48 50 3 3
Eastern 19 21 2 2
South 2 4 2.5 2.5
Segments Revenue % % Proft IFE Score EFE Score
Casinos 76 69 2.5 3
Rooms 7 10 2 2
Food and Beverage 13 12 3 3
Managed Properties 1 4 2.5 2.5
Others 3 5 3 2