Faculty Name: Mr. Anchal Gupta
Subject: Strategic Management
Title of the Case: SpiceJet as a Leader and Looser
Topic Covered: Cost leadership Strategy, Turnaround Strategy, SWOT Analysis
Overview of illustration:
SpiceJet is an Indian low-cost airline and certainly it will guide all MBA students that how a small
company started their business and became fourth largest airline by domestic passenger share.
Here students will learn that how a company which is losing market position but still is holding price
leadership tag (Cost leadership Strategy) and just within short span of time same company is thinking for
coming back strategy. Within the case we will discuss the SWOT analysis of SpiceJet, proper
understanding of the case will help budding entrepreneurs.
SpiceJet has implemented many such strategies in order to stand proactively in innovative and
competitive external environment.
The topics touched are:
1. Cost leadership Strategy
2. Turnaround Strategy
3. SWOT Analysis
About SpiceJet Airline
It is the country’s fourth largest airline by domestic passenger share. The airline operates more than
230 daily flights to 42 destinations, including 34 Indian and 8 international cities using a fleet of Boeing
737 Next Generation and Bombardier Dash 8 Q400 aircraft. The airline began services in May 2005 and
has its corporate office in Gurgaon, Haryana.
In 2004, Ajay Singh raised funds and restarted operations as SpiceJet following the low-cost model.
SpiceJet leased 3 Boeing 737-800 aircraft. On 7 March 2005, the Airports Authority of India approved
three overnight parking slots to SpiceJet, with two in Delhi and one in Mumbai. SpiceJet opened
bookings on 18 May 2005. The first flight was flagged off by then Union Minister of Civil Aviation, Praful
Patel. The first Boeing 737-800 aircraft left Indira Gandhi International Airport, New Delhi for
Chhatrapati Shivaji International Airport, Mumbai on 24 May 2005. By 2008, it was India’s second-largest
low-cost carrier in terms of market share.
Awards and Achievements
India’s Best Low Cost Airline by Outlook Traveller (2008, 2010, 2011 & 2012)
India’s International Low Cost Carrier of the Year– 2012 by Travel Agents Association of India.
(TAAI)
India’s Most Outstanding Airline LCC-Domestic Award, by Travel and Hospitality. (2012)
Best LCC Website at ‘World Low Cost Airlines Asia Pacific Conference’, Singapore. (2010, 2011 &
2012)
