Allegiant Air SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 12, 2020

SWOT analysis of Allegiant Air analyses the brand by its strengths, weaknesses, opportunities & threats. In Allegiant Air SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Allegiant Air to benchmark its business & performance as compared to the competitors. Allegiant Air is one of the leading brands in the airlines sector.

The article below lists the Allegiant Air SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Allegiant Air SWOT Analysis:

SWOT Analysis of Allegiant Air

For Allegiant Air, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Allegiant Air Strengths

The strengths of Allegiant Air looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Allegiant Air :

1. Cost advantage due to high operational efficiency

2. Very high passenger load factor – average > 90%

3. Travel packages and deals with restaurants, tourist destinations
4. Revenue from ancillary services as food & drinks services on flight, advance seat bookings etc.

5. Nearly 100 destinations across USA are covered

Allegiant Air Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Allegiant Air SWOT Analysis:

1. No bookings through travel agencies or presence on internet

2. No frequent-flier programs or on-board entertainment


Allegiant Air Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Allegiant Air SWOT Analysis:

1. Expansion into regions with lower (80%) load factor

2. Tie-ups with major airlines to increase reach of customer bookings

3. More visibility through loyalty programs and ads

Allegiant Air Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Allegiant Air are as mentioned:

1. Increased employee unrest due to cost-cutting measures
2. Rising fuel and labour costs a challenge to low-cost business model

3. Unfavorable govt policies in the aviation sector


Allegiant Air Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Allegiant Air:

1. Southwest Airlines
2. Frontier Airlines
3. Spirit Airlines

Hence this concludes the Allegiant Air SWOT analysis.

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About Allegiant Air

Allegiant Air Overview
Parent Company

Allegiant Travel Co

Category

Domestic

Sector

Airlines

Tagline/ Slogan

Travel is our deal

USP

Travel packages and economical flight fares

Allegiant Air STP
Segmentation

Customers looking for cheap fares

Target Market

Leisure tourists/Middle income group

Positioning

Low-cost airlines

 

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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