Another social backlash against Indigo.
Indigo needs to amend before its too late. Frequent such issues can create a sticky negative impression that would be hard to rub off at later stage. At any point in time when Indians might have choices, indigo will lose in all those occasions. Three imminent dangers visible right now:
- Spicejet revival. Multiple firms are keenly interested in resurrecting spicejet. If things do go right, it would be just matter of months before it can snatch as much as 10-15% of market share, the share that it had lost.
- Lack of visible govt backing. Indigo doesnt seem to be dear to govt just as Adani, Ambani stocks are. The ruling party friendship equation doesnt exist to act as a veto for its growth.
- People’s Fav Tata may change the game. From bringing connected perks to increasing luggage limits to perceived empathetic customer service, Tata group can bring up any ball game to toss of indigo into a different battlefield. The way they did for tata motors by shifting the battlefield from features and price points to safety rating to gain a traction and reach #2 spot in the Cars market share.
Although indigo knows very well the business, it seems to take word of mouth and customer satisfaction absolutely for granted. This is not the strategy that a long term vision perhaps could sustain.
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