Spice Jet Case Study

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1. How did the concept of LCC emerge in India? Which factors encouraged the growth of LCCs? Ans 1.:

The history of aviation industry dates back to 1930 when the Tata group launched the Tata airlines. Though at that time the entry of private firms were restricted but after the liberalization the entry of private owned airlines operators and LCC emerged in the Indian market. By 1994 the government approved the entry of private players in the market. LCC emerged as the main concentration on developing the economy was on infrastructure and the development of the transportation and in particular the aviation industry thus giving more liberal option to private players and expanding the same industry with low cost fair and carriers as a ticket costing the same as first tier ticket of railways thus encouraging people to travel by air reaching their destination in lesser span of time. LCC even lead to more foreign direct investment inflows, higher corporate travel, higher household incomes, sustained business growth and contributing to the government even in may ways for developing of the national economy.

2. What factors should SpiceJet consider before strategizing its operations in India. Use tools such as CPM (Competitive Profile Matrix), EFE Matrix (External Factor Evaluation), & IFE (Internal Factor Evaluation) which serves to identify various factors and forces that are critical in formulating appropriate strategies needed to accomplish the organization's objectives. You can learn this tools from referred books or from online?

ANS2:
Spiceject works on a low cost model and it has to be very careful in matter of operating costs. This model here is to stay for a long term period since it can directly compete with other means of transport. There are certain tools to be discussed below which will give us clear picture of formulation of strategies which can be implemented by Spicejet?

Comprehensive strategy formulation framework is a tool of...
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