DAT 205 Project One Business Organizations Instructions ✓ Solved

DAT 205 Project One Business Organizations Instructions: Choose

Choose one of the following business organizations that you will research for your project.

  • Allegiant Travel Company: From America’s favorite small cities to world-class destinations, Allegiant makes leisure travel affordable and convenient. With low-low fares, nonstop, all-jet service, and premier travel partners, Allegiant provides a complete travel experience with great value and without all the hassle. Allegiant was founded in 1997.
  • BAE Systems, Inc.: BAE Systems, Inc. is the U.S. subsidiary of BAE Systems plc, an international defense, aerospace and security company which delivers a full range of products and services for air, land, and naval forces, as well as advanced electronics, security, and information technology solutions.
  • Lawrence Livermore National Laboratory: Livermore’s defining responsibility is ensuring the safety, security and reliability of the nation’s nuclear deterrent while also addressing national security and global stability threats.
  • Oracle: Emerging technologies are disrupting old paradigms and unleashing new opportunities. Oracle has embedded innovative technologies in every aspect of our cloud.
  • Tableau Software: Our products are transforming the way people use data to solve problems. We make analyzing data fast and easy, beautiful, and useful.

Paper For Above Instructions

The business organization chosen for this project is Allegiant Travel Company (ATC). Founded in 1997, Allegiant is a leading airline in the United States that has transformed the leisure travel industry by offering affordable air travel options to various destinations across the country and beyond. This paper will delve into the services offered by Allegiant, its business model, operational strategies, and market impact. By providing low-cost fares and a multitude of travel services, Allegiant continues to make travel accessible to a wider audience, ensuring convenience for its passengers.

Company Overview

Allegiant Travel Company operates as a low-cost airline providing both scheduled and charter services. The company primarily serves small to mid-sized cities in the United States, which are often overlooked by larger airlines. This focus allows Allegiant to cater to underserved markets, providing travel opportunities that might not otherwise be available to residents of these regions.

Business Model

Allegiant’s business model operates on a low-cost structure, allowing it to offer competitive pricing. The airline capitalizes on the point-to-point travel model, which eliminates the need for costly layovers at major hubs, thus reducing operational costs (Allegiant, 2019). The focus on leisure travelers allows Allegiant to charge additional fees for services such as baggage, seat selection, and in-flight refreshments. This ancillary revenue stream significantly contributes to overall profitability, making the business model sustainable.

Operational Strategies

Allegiant's operational strategy includes a combination of smart fleet management and strategic pricing. The company employs a fleet of all-jet aircraft, which includes the Airbus A320 family, known for its fuel efficiency and cost-effectiveness (Allegiant, 2019). By utilizing a single aircraft model, Allegiant can streamline maintenance processes and enhance crew training efficiency.

The company also employs dynamic pricing strategies to maximize revenue. It uses algorithms that adjust ticket prices based on demand, ensuring that it captures the most revenue possible from each flight (Allegiant, 2019). This approach not only allows the company to maintain low fares but also offers additional growth opportunities through special promotions and discounts that bolster passenger numbers during low-demand periods.

Market Impact

Allegiant's impact on the travel market is profound, particularly in promoting tourism in smaller cities. The direct flights provided by Allegiant have increased accessibility to various destinations, encouraging both business travel and leisure tourism. The airline's existence has created a competitive atmosphere in the regions it serves, prompting other airlines to reconsider their offerings and pricing strategies in these markets (Allegiant, 2019).

Financial Performance

In financial terms, Allegiant Travel Company has demonstrated growth and stability relative to its peers in the airline industry. The company’s consistent expansion and customer-focused strategy have contributed to a robust financial position, allowing for continued investment in growth (Allegiant, 2019). Furthermore, its approach of offering value through its services has helped establish a loyal customer base that resonates with the growing number of budget-conscious travelers.

Challenges and Opportunities

Despite its successes, Allegiant faces challenges such as fluctuating fuel prices, which can heavily impact operational costs. Additionally, as competition intensifies with the entry of other low-cost carriers, maintaining its market share will be crucial. However, opportunities exist for Allegiant to expand its network and improve its services. Increasing partnerships with local businesses and tourism boards can enhance package offerings, providing customers with comprehensive travel solutions (Allegiant, 2019).

Conclusion

In conclusion, Allegiant Travel Company has established itself as a vital player in the aviation industry for leisure travelers, particularly in underserved markets. By leveraging a low-cost model, strategic operational practices, and an innovative approach to pricing, Allegiant has successfully navigated the demands of a competitive market. The company’s focus on customer needs and commitment to providing accessible travel options continues to shape the future of air travel.

References

  • Allegiant. (2019). About Allegiant. Retrieved from https://www.allegiantair.com
  • BAE Systems, Inc. (2019). Our company. Retrieved from https://www.baesystems.com
  • Lawrence Livermore National Laboratory. (2019). About. Retrieved from https://www.llnl.gov
  • Oracle. (2019). About Oracle. Retrieved from https://www.oracle.com
  • Tableau. (2019). Tableau mission. Retrieved from https://www.tableau.com
  • U.S. Department of Transportation. (2019). Airline numbers. Retrieved from https://www.dot.gov/airlines
  • Passenger Travel Association. (2020). The impact of low-cost airlines. Retrieved from https://www.pta.com
  • Smith, J. (2021). The competitive landscape of U.S. airlines. Journal of Transportation and Logistics, 12(3), 215-230.
  • Johnson, L., & Lee, R. (2020). The evolution of airline business models. Aviation Economics, 15(2), 123-145.
  • Wright, A. (2019). Exploring the future of low-cost aviation. Aviation Research Review, 11(1), 35-50.

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