-
Polar opposite airline business models
QUESTION
The two polar opposite airline business models are low-cost (LCC) and full-service network carrier (FSNC). The objective of this assignment is to deepen your understanding of production costs, specifically how various airline business models affect the cost of operation.
| Subject | Business | Pages | 3 | Style | APA |
|---|
Answer
Findings:
The Data duration summary indicate that week 3 had the highest number of visitor visits of 13 followed closely by week 4 with 12 visitors. Week 2 had the lowest visitor count of 9 with week 1 counting for only 11 visitors. The highest number of visited pages was in week 2 with 89 page visits. There is a positive correlation on the time spent on the website and the number of visited pages. The positive correlation is at 0.89 with the highest time spent corresponding to week 3.
The maximum time spent on the drone website was fifty minutes and 4 seconds and the minimum time spent was one minute ten seconds. The average time spent on the website was fifteen seconds and 16 seconds. Highest number of page visits was 27 seconds and average page visits estimated at 6.7.
The numbers added to the favorite section as potential customers accounted for 66.7% of the total visitors (30 visitors) and 33.33% (15 visitors) were not added to the favorite section.
The pivot tables and charts provided a summary based on the type of operating system, browser, site connection, state visit and the average time spent on the website. On type of type of operating system, Linux had the lowest access to visitors (19) while 26 visitors used windows to find the drone website. MS internet explorer is the most widely used browser in Australia with 24 visitors using the browser to access the website. This is followed closely by Firefox with 16 visitors and finally chrome with only 4 visits. WOW has the highest site connection in Australia with 15 visitors followed closely with DuckDucko with 8 visitors. By State, New South Wales and Queensland shared the spoils with highest average time spent on the website with 9 visitors each. South Australia had 4 visitors, Australia Capital Territory and Northern Territory had 5 visitors each, Western Australia (6) and Victoria (7).
Based on the accounting assumptions, the budget summary report indicates that the company would make an estimated profit of $6,649.20 in the month of May. However, inclusion of market campaign is not profitable as it leads to a loss of $737.77. Hence do not undertake the marketing campaign.
Recommendation for Additional Analysis
To improve the business model, it is important to conduct a further cost analysis on other cost elements that influence profits. Apart from the purchase and delivery costs, there are other costs involved such as labor costs, rent, insurance, depreciation costs that are not accounted for in the calculation. The analysis would help to understand the cost per each state in detail which influence the profit maximization.
The visitor data could also be analyzed further in understanding the relationship between sales within different states and why some states have higher delivery costs than others. Visitor data should also be specific to localities.
It is also important to include details of income levels to better analyze the market which can be evaluated from IP Locations which tringualite the localities of the visitors. Certain regions have higher income levels and this information can be used in targeting customers.
Recommendation for Additional Data
Additional data that should be provided include; IP locations of the visitors, Specific locations not categorized by cities but by regions, Keyword data from the search engine, Chat sessions with the website support system, mode of deliveries upon placing orders. The details would help the company to understand the target market and improve on revenue generation