SpiceJet SWOT analysis – SWOT analysis of SpiceJet: A well-known low-cost airline, SpiceJet was established in the year 2005. It is located in Haryana, India. SpiceJet is the 4th biggest airline in India that has a large number of domestic passengers. It boasts an estimated market share of around 13.3 percent as of the year 2017.
The company’s slogan is “flying to everyone’. SpiceJet offers 312 flights per day to 55 destinations which include 47 Indian and seven international destinations that originate from cities like Delhi, Mumbai, Kolkata, and Hyderabad. It was initially founded to serve as an air-traffic service provider ModiLuft in 1994. The company was later acquired by Indian businessman Ajay Singh in 2004 and recommenced its operations under the name SpiceJet.
The airline also has an array comprised of Boeing the 737 as well as Bombardier aircraft. SpiceJet provides premium services under its name SpiceMax which allows passengers to enjoy additional benefits such as seats that are assigned with extra legroom priority check-in, free meals on board, and additional benefits.
Being a well-known low-cost airline for a while, let’s look at what is the SWOT of SpiceJet.
SpiceJet fun facts: SpiceXpress began services between Guwahati and Hong Kong on 19 January 2019 becoming the first airline to operate freight services between Northeast India and Southeast Asia.
About SpiceJet – SWOT analysis of SpiceJet
Company: Spicejet Ltd.
CEO: Ajay Singh
Founder: Ajay Singh | Bhupendra S. Kansagra
Year founded: 9 February 1984
Annual Revenue: INR6,072.55 crore
Profit | Net income: -INR1,029.89 crore Loss
Number of employees: 14,578
Products & Services: SpiceJet is an Indian low-cost airline headquartered in Gurgaon, Haryana. It is the second largest airline in the country by number of domestic passengers.
Competitors: Flyglobespan | Jet2.com. | Air Arabia | Wizz Air | Ryanair | easyJet | JetStar | AirAsia Group Berhad | Indigo Airlines | Go Air
SWOT analysis of SpiceJet – SpiceJet SWOT analysis
SWOT Analysis Of SpiceJet is brand-based. SWOT Analysis of SpiceJet evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing SpiceJet’s SWOT Analysis. Below is the detailed SWOT Analysis of SpiceJet.
Let’s talk about SpiceJet’s SWOT assessment.
Strengths of SpiceJet – SpiceJet SWOT analysis
The ability to fly: The management team of SpiceJet is all experienced senior executives and professionals with an extensive amount of international experience operating and creating low-cost airlines. With a lot of man-hours spent in the business and a strong commitment by the management to providing the customers of India the advantages from the worldwide revolution that is taking place in the skies. The airline offers a relaxing flight that is cheap and refreshing.
Security features: This airline puts a significant amount of money into the safety and maintenance of its aircraft with experts of the highest caliber of personnel. The maintenance staff, pilots as well as engineers receive a rigorous education and are carefully selected for their knowledge and experience in the field. So, the passengers can relax when traveling.
Flexible fare structure: with the ability to change its fare structure on the fly it offers prices that are reasonable and, in comparison, lower than other airlines. With modern interiors, vivid colors, and modern designs, SpiceJet most fits the contemporary consumer.
Great reachability: Good reachability SpiceJet is able to reach approximately 55 destinations. The traveler can fly directly to these destinations.
A good Market presence: Good market presence SpiceJet has a solid presence in the marketplace as it has maintained a strong marketing plan. Because of this, it has a strong branding worth.
An Interactive Website: A website that is interactive SpiceJet offers an interactive site that allows customers to book tickets on their site. This way, customers are able to book tickets and check-in online.
Tourism partnership: SpiceJet has signed a partnership with Tripfactory for the purpose of selling holiday packages using the platform. This will boost the revenue of their business.
The Rs. 99 fare was introduced. It started with an initial Rs. 99 far for the initial 99 days to entice passengers. The airline has attracted a lot of passengers to the airline in those first days in order to improve its visibility of the airline.
Weaknesses of SpiceJet – SWOT Analysis Of SpiceJet
A high level of competition: High competition SpiceJet is in strong competition with other companies due to its low market share.
Limited destinations: The number of destinations that are served by this airline is limited in comparison to other services offered by airlines. This is to limit access for passengers traveling to destinations that are not included as SpiceJet destinations.
Unwise choices: In 2014 SpiceJet offered a 50% discount because the airline was faced with an influx of competition. Because of this, it canceled many domestic flights throughout the country, causing an immense amount of confusion for the passengers.
Regular offers: Frequent offers SpiceJet giving out frequent offers to passengers isn’t the best way to increase customers. This could impact the revenue they earn, resulting in some losses in their business.
The high cost of fuel and airport costs: All airlines, including SpiceJet, are impacted by being in an expensive atmosphere that is prevalent in the aviation sector. This is likely to be a major portion of their earnings, which can lead to lower revenue.
A dip in their profits: In the last few months, the airline reported a loss of the sum of Rs. 38 crore, in comparison to a profit of 175.2 crores in the previous year. 175.2 crores in the prior year.
Opportunities of SpiceJet – SpiceJet SWOT analysis
Low cost of airfare, which means more customers: Because SpiceJet is known for its low-cost flights, many middle-class people who want to travel via airline utilize SpiceJet to travel.
Additional routes and locations: more destinations and routes SpiceJet has more chances to increase its revenue by adding more locations and routes. SpiceJet can expand its destinations to places that can attract more travelers.
International partnerships: A partnership with international markets could improve their visibility and brand image.
The growing attraction to tourist attractions: since SpiceJet has joined forces with the tourism industry, there is an enormous potential to profit from it. Tourism is growing within India and this is helping the company to expand.
Tax holiday on the leasing of aircraft: India’s Union Budget Government of India has announced a five-year tax holiday on the occasion of renting an aircraft.
Threats of SpiceJet – SWOT analysis of SpiceJet
A strong competition: Strong competition SpiceJet is facing many challenges from its competitors, which is an extremely serious threat to airlines’ services.
Fuel price increase: The increasing cost of fuel could pose an issue for their economy. It will reduce the margins of the airline.
The change in the policies of the government: Regular changes to government policies and international market pressure will impact the operation of the brand and the image of the business.
Overview Template of SpiceJet SWOT analysis
SpiceJet is India’s most preferred low-cost airline. As we have seen earlier, the social media campaigns run by the brand were a great success. It had its unique marketing strategies.
SpiceJet has received many awards and achieved great heights. But besides that in some areas, there is a need for improvements like airline punctuality, greeting at the airport, welcoming of passengers, seats, and call centers.
This is the SWOT analysis of SpiceJet. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.