Capstone Business Simulation

Strategy Capsule
Group 9
P21006 Akshara Gupta
P21009 Ananya Gupta
P21010 Ananya Khare
P21011 Ankit Gupta
P21016 Biswadeep Roy
P21022 Harshhil Bhatnagar
P21181 Sanskar Sahu
P21054 Shubham Mathur
Lets start with a Quiz!!
 Strategy

Came from the greek word strategos - meaning general.

This idea is predominantly related to wars, where either of the
of the sides wields some form of idea to attack or defend to
gain advantage over other.

Professor Costas Markides, of the London Business School, put it well: “strategy is about
making choices; about ‘who, what, how’: who is our chosen customer; what are we going
to sell; and how are we going to deliver that value proposition”. It should lead to a
coherent set of mutually reinforcing choices.

Mintzberg initially wrote about the five pillars of strategy in 1987. The five Ps each stand
for a different method of strategy. Plan, Ploy, Pattern, Position, and Perspective fall under
this category. These five factors make it possible for a business to create a more effective
plan.
 What is not a strategy
Strategy word is easily used in every circumstance, but it is not what it says
Action is not a strategy
Until:
Where/Who
Leads to destination, the end they seek
How
Selected defined paths to achieve the defined end result
and not SOP
What
Prescribes activities

Strategy is never a secret.

Top management definitely has access to strategy, but - the formulation should also
involve the ground management team too.
Also strategy can never be a secret from the competitor - Competitors in this world of
network reach have the same capacity of information and, resources and
opportunities.
But actions or defined short term objective could be a secret.
 Porters 5 forces
To discover the economic factors affecting your sector and the competitive
position of your organization, use Porter's Five Forces as a strategic planning tool.

Rivals existing - Your industry's profitability—the potential to provide

a high return on investment—and, consequently, its capacity to draw
new players, are greatly influenced by competition.
New entrants -New competitors can sell their minimal viable product
if they can swiftly and affordably join your market. Just enough
functionality are there in this product to please its early adopters.
Suppliers - The capacity of your business to regulate pricing is
directly impacted by the quantity of suppliers or rivals in your
market. Suppliers control price when there is little or no rivalry. You
and your fellow suppliers can quickly find someone else who will
accept your pricing if a customer refuses them.
Buyer - Their capacity to manage pricing is directly impacted by the
amount of clients in your sector. If your sector has a small number of
clients, those clients have the lion's share of the power.
Substitute - Products from other sectors that customers may use
interchangeably as substitutes, such as coffee and tea, have a huge
impact on your industry.
 Competitors
Nike, Puma, New Balance, and
Asics are some of Adidas' key
rivals. Nike and Under Armour,
who jointly own 62% of the US
Buyers
Supplier sports footwear market, are
the company's primary rivals
Department shops, specialty
Asia is where Adidas's in the footwear sector.
stores, and direct buyers make

PORTER 5
suppliers produce their goods. up the majority of Adidas'
As a result, the firm must pay clients. Adidas still generates
higher rates for its products, the majority of its income from
making it challenging to brick-and-mortar stores, with

FORCES control expenditures while

maintaining acceptable profit
margins.
brick-and-mortar stores
accounting for 58 percent of its
overall revenue, despite the

EXAMPLE
surge in online sales.

New Entrants
Substitutes
The requirement for a robust
distribution network and a high
It's not always possible to
degree of brand recognition are
swap sportswear with
the key entrance obstacles for
garments from other brands or
Adidas. Additionally, if Adidas
even from different sports
doesn't keep up with emerging
producers.
trends, its competitors may gain
market share.
 PESTEL Analysis

P Political

E Economic

S Social

T Technological

E Enviornmental

L Legal
 POLITICAL ECONOMIC SOCIAL
Management teams may face
significant risks and Economic aspects are
opportunities as a result of the Economic typically easier to measure
looming threat of trade wars or considerations often than social ones. They relate
antitrust problems. The to changes or evolutions in
management team of a company
have a financial focus
stakeholders' perspectives
may find the run-up to elections and are related to the on life and leisure, which
to be particularly difficult due to overall economy. might have an influence on
opposing parties' positions on
important platform issues. business operations.

Technology is pervasive in As the business community

started to understand that
A legal factor is one that
today's corporate
changes to our physical results from changes in the
environment and is
environment might create regulatory environment
evolving quickly. Both
material dangers and and may have an impact on
management teams and possibilities for firms, the overall economy, a
analysts need to be aware environmental considerations particular industry, or even
of potential technology started to make sense as an
a single firm within a given
effects on an industry or addition to the original PEST
framework.
sector.
business.

TECHNOLOGICAL ENVIRONMENTAL LEGAL

P Political - sourcing the raw materials

E Economic - economic recession

Social - cheaper products but it might

S have to sacrifice the quality.

Technological - enjoy benefits of the

T emerging mobile wave

Environmental - business practices concern

E activists and international advocacy groups

Legal - laws and regulations in the home

L market and countries from where they buy raw
materials
 Internal Analysis
It is a method for determining a company’s assets, opportunities, and threats. It’s
useful for identifying what has worked well and what could be modified to create a
better result in the future.

Objectives
Find Strengths and weaknesses
Analyze internal factors that are controllable
Identify Area of Growth and Opportunities
 Strategic frameworks for internal Analysis

VRIO
Value Chain Analysis
BCG Matrix
MsKinsey 7S Model
 VRIO Framework
Resource Based View
This tool is used to examine an organization’s internal resources to achieve sustained competitive
advantage.

Valuable Rare Inimitable Organization

Resource that is Reasons:- Does organization have
Can be quantified the internal, structures,
uncommon and not Unique historical
using Net Present conditions systems, and processes
possessed by most
Value Method Causal Ambiguity to exploit this
organizations is rare advantage
Social Complexity

Firm Resources VRIO Sustained

Competitive
Advantage
VRIO Analysis - Starbucks
 Value Chain Analysis

Value chain analysis is a means of evaluating each of the activities in a company’s

value chain to understand where opportunities for improvement lie. Conducting a
value chain analysis prompts you to consider how each step adds or subtracts value
from your final product or service.

This help one realize some form of competitive advantage, such as:
Cost reduction - by making each activity in the value chain more efficient and,
therefore, less expensive
Product differentiation - by investing more time and resources into activities like
research and development, design, or marketing that can help your product stand
out
 Benefits- Value Chain Analysis

Reduce cost and Improves customer Standardizes and

Optimizes Inventory
delivery times relationships optimizes processes

Helps gain Competitive Better Vendor

Edge Management
BCG Matrix
Star
Highly Competitive
On Maturity - can become Cash Cows
With changing technology - can also become a Dog

Cash Cows
Generates profit with low cost support
Need to be managed for continuous growth
Profit can be used to support other products

Question marks
Require huge investments
Could become Stars/ Cash cows or Dogs

Dogs
Products at declining stage of product lifecycle
Should be liquidated
BCG Matrix - Apple
Relative Market Share

High Low

iPhone Apple TV, Airpods

High
Market Growth Rate
iTunes, ipad, iWatch iPods

Low
 McKinsey 7S Framework

Easily identifiable and influenced

by leadership and Management

Intangible and culture driven

 McKinsey 7S Framework
Strategy - Organization's plan for building and maintaining competitive advatage over
competitors

Structure- How the company is organised, structure of department and teams etc.

Systems- Daily Routine activities that staff use to get the job done

Shared Values- Core values of the organization that reflects its work ethics

Style - Management style prevalent in a company that decides the level of

employee productivity and satisfaction.
Intangible and culture driven
Staff- The talent pool required, the size of the existing workforce, and their
motivations including the reward system

Skills- The abilities of employees to complete tasks

 Business Strategy
Essentially, a business plan is a long-term sketch of the desired strategic
destination for a company.
What is business strategy?
A business-level strategy is an innovative way for a company to showcase its unique assets, increase its competitive
edge and help the individual components of its company function as one whole unit.

This strategy focuses on how corporate aspirations will be implemented within individual company settings.

This long-term sketch will contain an outline of the strategic, as well as tactical decisions a company must take to
reach its overall objectives.

Why is a business strategy important?

The reason why having a strategy is so important is that it gives the business time to get a sense of how they are
performing, what its capabilities are, and if these capabilities are able to help them grow.

Listed below are some reasons why having a business strategy is important:
Guide
Trends
Vision
Competitive Advantage

.
 Cost Leadership
What is Cost Leadership?
Cost leadership occurs when a company is the category leader for low pricing.

To successfully achieve this without drastically cutting revenue, a business must reduce costs in all other areas of the
business, such as marketing, distribution, and packaging.

A cost leadership strategy is a company’s plan to become a cost leader in its category or market.

How can a company become a cost leader? How to develop a cost leadership strategy?

Increasing the production scale Analyze the existing operations

Implementing advanced technology Research competitors

Sourcing raw materials Identify strategies to reduce costs

Limiting products and services Keep track of progress

Cost Leadership - Walmart
Save Money. Live Better.

Walmart is a US multinational retail corporation that operates

11,484 supermarkets and discount stores across 27 countries.
Its competitive advantage strategy is based on selling branded
products at low costs, attracting the largest number of
customers possible.

The company has established a competitive advantage in costs

in multiple ways:

Automation & Technology

Minimized spending on human resources
Working closely with suppliers
Cutting on outsourcing costs
Meeting with vendors to help them cut their own costs
 Differentiation
A differentiation strategy is an approach businesses develop by providing customers with something unique, different,
and distinct from items their competitors may offer in the marketplace.

The main objective of implementing a differentiation strategy is to increase competitive advantage.

A business will usually accomplish this by analyzing its strengths and weaknesses, the needs of its customers, and the
overall value it can provide.

Benefits of creating a differentiation How to create a differentiation strategy?

strategy
Decide what you want to be known for
Reduced price competition
Research your target audience
Unique products
Develop differentiators
Better profit margins
Create a brand image
Consumer brand loyalty

No perceived substitutes
Differentiation - Coca Cola
Things go better with Coke
Coca-cola is a clear example of how to stand out across multiple
areas. The coca-cola company is one of the most powerful
brands in the world and a good example of product
differentiation.

Trademarks
Name
Bottle Shape
Graphic Representation

Patents
The formula for the soft drink

Unique Campaigns
Carefully positioned advertising
Special packaging
 Blue Ocean Strategy
BLUE OCEAN STRATEGY is the simultaneous pursuit of differentiation and low cost to open up a new market space and
create new demand.

It is about creating and capturing uncontested market space, thereby making the competition irrelevant.

It is based on the view that market boundaries and industry structure are not a given and can be reconstructed by the
actions and beliefs of industry players.

Blue oceans vs Red Oceans

BLUE OCEANS, in contrast, denote all the industries RED OCEANS are all the industries in existence today
not in existence today – the unknown market space, – the known market space.
untainted by competition.
Industry boundaries are defined and accepted, and
Demand is created rather than fought over. the competitive rules of the game are known.

There is ample opportunity for growth that is both Companies try to outperform their rivals to grab a
profitable and rapid. greater share of existing demand.

In blue oceans, competition is irrelevant because As the market space gets crowded, profits and
the rules of the game are waiting to be set. growth are reduced.
 Blue Ocean - Marvel
Today we don't fight for one life, we fight for all of them

We can understand the blue ocean strategy of marvel through a

quick video:
https://www.youtube.com/watch?v=wJ2a9H3sSSo

Thoughts of Mr. Peter Cuneo:

https://www.youtube.com/watch?v=QHvPxIggCX4
Get Ready for Another Quiz!!
 Corporate Strategy

Corporate strategy concerns itself with the entirety of the organization, where
decisions are made about a company's overall growth and direction. It aims to
achieve the most profitable allocation of resources and organizational structure and
to create the most value.

Corporate
Strategy
Components of Corporate Strategy:
Business
Vision Strategy
Organizational Structure
Allocation of Resources Functional
Strategic Tradeoffs Strategy
 Why is it important?
"If a man does not know what port he is steering for, no wind is favorable."
- Roman philosopher Seneca

Corporate Strategy provides the vision for its businesses.

It allows a corporation to focus multiple resources on a single objective.
It provides management with a benchmark to measure a company's success or failure.
A well-thought-out corporate strategy also helps organizations to grow even in the
everchanging market and economic conditions.
 Types of Corporate Strategy

Growth Strategy Stability Strategy

(Facebook, Google)

Retrenchment Strategy
 Stability Strategy
The stability strategy focuses on maintaining the growth, earnings, and current
position of the company in the market.
It only focuses on the existing product portfolio, there is no expansion, no new
product development or invention of any kind.
Generally, small and mid-sized company follows the stability strategy.
Large organizations also follows the strategy in case of recessions or downturn of
economy to save its reources.

Types
No Change Strategy - Running as it is
Profit Strategy - Cost Cutting, Price Increase, Decreasing Investments
Pause Strategy - Hold after rapid growth (Dell after e-retail)
 Stability Strategy
Advantages Disadvantages
Regular Work No increase in output
No External Analysis No Innovation
Low Risk Not Suitable for Long Term
Satisfaction in Performance Not for Large Scale Companies

Examples

SAIL - Over- Capacity in the Industry

Bata - Focus only on Footwear without any expansion.
 Retrenchment Strategy
The retrenchment strategy focuses on scaling back one or more of its
company operations to cut down expenses or reach a better and
stable financial position.
It eliminates all the goods or services that are not
beneficial/profitable to the company.

Types
Turnaround Strategy - Reversing declining patterns (Dell D2C)
Divestment Strategy - Selling a division, business, or unit of the
company.
Liquidation Strategy - Selling off the complete resources and
closing the commercial operations
 Retrenchment Strategy

Advantages Disadvantages
Cost Efficient Losing Employees
Improved Performance Criticism

Examples

Ford - Leaving the Indian Market

P&G - Divested 100 of its product categories to focus on core
Steve Jobs and Apple - Steve Jobs returned to Apple in 1997 and
saved the company from bankruptcy.
Growth Strategy
Ansoff Matrix
Ansoff Matrix for Coca Cola
Mergers and Acquistions
 Mergers and Acquistions Examples

Successful Merger & Acquisition: Disney, Pixar and Marvel

Mass media conglomerate Disney found enormous success with two

very famous acquisitions; first, of animation heavyweight Pixar, then
Marvel Entertainment.

Walt Disney Co. acquired Pixar in 2006 for $7.4 billion, and has since
seen tremendous success with films like WALL-E, Finding Dory and Toy
Story 3 – each of which have generated billions of dollars in revenue for
the company.

Shortly after, Disney acquired Marvel Entertainment, paying $4 billion

for the entertainment company in 2009.
 Failed Merger & acquisition: eBay and Skype

eCommerce giant eBay purchased Skype for $2.6 billion back in 2005,
thinking that buyers and sellers could better connect with their video
communication tools.

The acquisition was a major flop, with users continuing to prefer email to
organize and execute their transactions. Skype’s management team was
reportedly changed four times in four years by eBay in an attempt to salvage
the acquisition, before they finally sold off 65% of the company in 2009.
 Strategic Alliance

A strategic alliance exists when two or more independent organizations cooperate

in the development, manufacture, or sale of products or services. Strategic
alliances can be grouped into three broad categories

❖ Nonequity Alliance
❖ Equity alliance
❖ Joint Venture
Balanced Scorecard
Balanced Scorecard
 Why go Global ?

New Sales Accessing New Fostering Global Lowering Labor Cost

Resources Brand Awareness
 Why go Global ?

Creating Economies of Diversifying Risk

Operation Flexibillity
Scale
 HOW TO GO GLOBAL ?

Exporting
Licensing
Franchising
Establishing joint-venture with host-country firm
Wholly-owned subsidary in host-country
Types of Global Strategy

STANDARDIZATION

MULTINATIONAL INTERNATIONAL
WHAT IS It is the practice of organizations hiring third-party

STRATEGY companies to identify and develop strategic

directions, business models, and capabilities that will
enable them to achieve their objectives

CONSULTING? Involves the use of research, analysis, and problem-

solving techniques to develop a robust set of plans
from the side of the consulting firm

The purpose of using a strategy consultant could also

be to identify an organization’s strengths and
weaknesses, create a viable plan for the future, and
even devise the best approach for the business

Common Types of Strategy Consulting:

Corporate Functional
Growth Digital
Operational
STRATEGIC LEADERSHIP
What is Strategic Leadership?
Ability to anticipate, envision, maintain flexibility, and
empower others to create strategic change as
necessary
It is the process of providing direction and inspiration
necessary to create or sustain an organisation

Important components of Strategic Leadership TYPES OF LEADERSHIP

High-level cognitive ability
Multiple inputs to strategy formulation
High Relationship
Anticipating and creating a future AUTHORITARIAN TEAM LEADER

Revolutionary thinking, and Task

IMPORVERISHED COUNTRY CLUB
Creating a Vision
Low High
 PROVIDE CREATE DEVELOP
ACCESS TO MULTIPLE PATHS OPPORTUNITIES FOR
OTHER FOR RAISING EXPERIENCE-BASED
STRATEGISTS AND TESTING LEARNING
IDEAS

DISTRIBUTE HIRE FOR

RESPONSIBILITY TRANSFORMATION
PRINCIPLES OF
STRATEGIC
LEADERSHIP
BRING YOUR
MAKE IT SAFE
WHOLE SELF TO
TO FAIL
WORK

RECOGNIZE
BE HONEST AND LEADERSHIP
FIND TIME TO
OPEN ABOUT DEVELOPMENT AS AN
REFLECT
INFORMATION ONGOING PRACTICE
 STRATEGIC DECISIONS
They are major choices of actions
STRATEGIC and influence whole or a major part
of business enterprise. These

DECISION MAKING decisions are taken at higher level

of management.

TACTICAL DECISIONS
These decisions relate to the
implementation of strategic
decisions.These decisions are
taken at middle level of
management.

OPERATIONAL DECISIONS
These decisions relate to day-to-day
op­erations of the enterprise. These
decisions are taken at lower level of
management.
STRATEGY IMPLEMENTATION
CHALLENGES

Lack of Unrealistic and or People drive Inability to

commitment to Inadequate Goal personal Track Progress
the strategy Setting Agenda There is old proverb, “You
Strategic goals have organization wide Non-synchronized effort manage what you measure,”
If you don’t approach your
effect and require many resources among leaders, functional is paramount to strategy
strategy with complete
scattered across many departments heads and there sub- execution. Without
conviction, you can’t expect
and locations to accomplish them. To ordinates can very well fail measurement, how do you
anyone else within the
achieve these goals requires extreme great strategic plans. manage the people and
organization to believe in it
clarity across teams which will result issues can derail to strategy
either.
in more clarity on priorities and journey.
responsibilities.
AMUL's STRATEGY DURING
CRISIS
Overview
OUTCOME
In 2020 when the lockdown was announced in India because of Minimized losses and
COVID 19 many organisations decreased their production increased revenue by
expecting a fall in demand
The same was with the case with the Milk and Dairy products
industry 700 Cr.
But AMUL did the opposite and increased their production

AMUL's Strategy
Number of new products
Identifying the change in the consumer behaviour during crisis launched in the market
Digital transformation of operations
Third-Party collaboration
Incentivising the frontline workers (farmers and labours) 33
Strategic Marketing Initiatives
Last Chance!! Get ready to win !!!
Indigo's Journey
Indigo's Journey
Entered Indian Aviation Space in 2005
Was dominated by Jet Airways, Deccan Airways
and Air India at that time.
Kingfisher also started their operations at the
time.
Indigo's Journey
Entered Indian Aviation Space in 2005
Was dominated by Jet Airways, Deccan Airways
and Air India at that time.
Kingfisher also started their operations at the
time.

Let's look at some numbers

Indigo's Journey
Entered Indian Aviation Space in 2005
Was dominated by Jet Airways, Deccan Airways
and Air India at that time.
Kingfisher also started their operations at the
time.

First Profit in Profit increase

just 2 years by 489%
Let us understand the Indian Aviation Industry
India Aviation industry is still small in India compared to US with just a size
of $900mn as compared to $106.5 bn.
Let us understand the Indian Aviation Industry
India Aviation industry is still small in India compared to US with just a size
of $900mn as compared to $106.5 bn.
Airlines as a way of transport is barely affordable for many a customers in
India.
Let us understand the Indian Aviation Industry
India Aviation industry is still small in India compared to US with just a size
of $900mn as compared to $106.5 bn.
Airlines as a way of transport is barely affordable for many a customers in
India.
Customer behavior- To go for low cost airline even at odd hours.
Let us understand the Indian Aviation Industry
India Aviation industry is still small in India compared to US with just a size
of $900mn as compared to $106.5 bn.
Airlines as a way of transport is barely affordable for many a customers in
India.
Customer behavior- To go for low cost airline even at odd hours.
Largest cost factor in the balance sheet of airlines? No Control
Let us understand the Indian Aviation Industry
India Aviation industry is still small in India compared to US with just a size
of $900mn as compared to $106.5 bn.
Airlines as a way of transport is barely affordable for many a customers in
India.
Customer behavior- To go for low cost airline even at odd hours.
Largest cost factor in the balance sheet of airlines? No Control

Very difficult to have profits in India!!

Let us understand the Indian Aviation Industry
India Aviation industry is still small in India compared to US with just a size
of $900mn as compared to $106.5 bn.
Airlines as a way of transport is barely affordable for many a customers in
India.
Customer behavior- To go for low cost airline even at odd hours.
Largest cost factor in the balance sheet of airlines? No Control

Very difficult to have profits in India!!

Objective:- Have profit margins by keeping your prices very low.

Indigo's Cost Cutting Strategies
Indigo's Cost Cutting Strategies

#1 Ordered 100 Airbus airplanes and that too

in first year of its operations which amounted to around $6-7 billion
Indigo's Cost Cutting Strategies

#1 Ordered 100 Airbus airplanes and that too

in first year of its operations.

Genius deal because of 3 major reasons:-

Airbus wanted to enter the Indian Market
Mr. Rakesh Gangwal
New Airbus aircrafts were far more efficient than Boeings.
Co-founder of Indigo Airlines
Sales and Lease Back Model

"Chance favors the prepared mind"

-Louis Pasteur
Sales and Lease Back Model
Lets Assume an aircraft costs $100 Million

After discount it becomes $60 Million

Sales and Lease Back Model
Lets Assume an aircraft costs $100 Million

After discount it becomes $60 Million

Airbus Indigo
Sale
$60 Million
Sales and Lease Back Model
Lets Assume an aircraft costs $100 Million

After discount it becomes $60 Million

Airbus Indigo BOC Aviation

Sale Sale
$60 Million $65 Million
Sales and Lease Back Model
Lets Assume an aircraft costs $100 Million

After discount it becomes $60 Million

Lease

Airbus Indigo BOC Aviation

Sale Sale
$60 Million $65 Million
Sales and Lease Back Model
Lets Assume an aircraft costs $100 Million

After discount it becomes $60 Million

Lease

Rent

From Operational Revenue

Airbus Indigo BOC Aviation

Sale Sale
$60 Million $65 Million
Sales and Lease Back Model Terms of lease
1. 6-8 week delivery gap
2. Any technical glitch or issues with
Lets Assume an aircraft costs $100 Million engine is to be taken care ohf by Airbus
or Engine Supplier
After discount it becomes $60 Million

Lease

Rent

From Operational Revenue

Airbus Indigo BOC Aviation

Sale Sale
$60 Million $65 Million
Sales and Lease Back Model Terms of lease
1. 6-8 week delivery gap
2. Any technical glitch or issues with
Lets Assume an aircraft costs $100 Million engine is to be taken care ohf by Airbus
or Engine Supplier
After discount it becomes $60 Million
Benefits
1. $5 million upfront profit
2. Way more aircrafts with Lease
very less capital.
3. Rent from operations

Rent

From Operational Revenue

Airbus Indigo BOC Aviation

Sale Sale
$60 Million $65 Million
Sales and Lease Back Model Terms of lease
1. 6-8 week delivery gap
2. Any technical glitch or issues with
Lets Assume an aircraft costs $100 Million engine is to be taken care ohf by Airbus
or Engine Supplier
After discount it becomes $60 Million Benefits
1. Indigo as a customer
Benefits
base.
1. $5 million upfront profit
2. Recurring revenue as
2. Way more aircrafts with Lease rent.
very less capital. 3. $100 million aircraft
3. Rent from operations at just $65 million

Rent
From Operational Revenue

Airbus Indigo BOC Aviation

Sale Sale
$60 Million $65 Million
Kingfisher used the same Sales and Lease Back Model, then why they had
so much losses?
Kingfisher used the same Sales and Lease Back Model, then why they had
so much losses?

#2 No Frills Strategy
Kingfisher used the same Sales and Lease Back Model, then why they had
so much losses?

#2 No Frills Strategy

-They understood the consumer behavior which was

"Indian Customers loved living king size but don't like paying king size"

-
Kingfisher used the same Sales and Lease Back Model, then why they had
so much losses?

#2 No Frills Strategy

-Understood the consumer behavior which was

"Indian Customers love living king size but don't like paying king size"

-Followed no frills strategy and removed inflight entertainment, meals etc.

-Reduced operational costs due to less fuel usage and equipments.
-More control over efficiency.
Kingfisher used the same Sales and Lease Back Model, then why they had
so much losses?

#2 No Frills Strategy

-Understood the consumer behavior which was

"Indian Customers love living king size but don't like paying king size"

-Followed no frills strategy and removed inflight entertainment, meals etc.

-Reduced operational costs due to less fuel usage and equipments.
-More control over efficiency.

#3 Hub and Spoke Model

https://youtu.be/E4iZ7HYerIo?t=34
Kingfisher used the same Sales and Lease Back Model, then why they had
so much losses?

Here comes another cost cutting strategy of Indigo.

-Understood the consumer behavior which was

"Indian Customers love living king size but don't like paying king size"

-Followed no frills strategy and removed inflight entertainment, meals etc.

-Reduced operational costs due to less fuel usage and equipments.
-More control over efficiency.
Benefits:-
More occupied flights.
#3 Hub and Spoke Model Easy Maintenance
https://youtu.be/E4iZ7HYerIo?t=34 Very easy to expand
Lets Become a CEO for 5 minutes!!

Assume you are the CEO of a company which manufactures F-35 jets and sell to
the government. You are on a customer visit and got the news that the new
president has tweeted saying "F-35 costs being out of control and that taxpayer
dollars would be spent better when he took office."

Your market cap swept cutting $4 billion of market cap in a day.

What would you do?

Thank You !