Essay about Business Analysis: Lufthansa Airline

The author of this paper’s intention is to present and examine a multi-national corporation. Dissect the how’s and what’s about it, and simply discuss its processes. The author will be giving a brief background on the company to easily elaborate how it is that the company is successful compared to its past. Its products and services will be conversed and the company’s industry will be discussed as well as its competitors and its market. Basically everything that has to do with the company will be

An example in aviation industry that has successfully employed a strategic alliance is Qantas Airlines, who entered into a non-equity strategic alliance with the large Middle-Eastern airline Emirates. Strategic alliances are evident

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

Cooperation within alliances poses several challenges to managers: the size of the alliance, the need to intensify cooperation and the harmonization and standardization of common processes, and the search for synergies to reduce costs. However, in times of crisis, alliances do not necessarily prevent stiff competition between the partners. At present, five alliances – One World, Star, Wings, Sky Team and Qualiflyer stand out as the core groupings around which other airlines with strong regional networks will come together to form worldwide networks and can be described as global alliances. But they remain fragile creations subject to competing attractions and economic forces. Over the years, several companies have switched from one alliance to another. Austrian Airlines, for example, moved from the Qualiflyer to the Star alliance. Air France has recently floated the idea of creating a Mediterranean alliance with Alitalia and Iberia. To make this three-way deal possible, Iberia would have to leave the OneWorld alliance.

Lufthansa is the largest airline in Europe in terms of passengers carried. By 2002, Lufthansa had become of the strongest airlines and top aviations groups in the world. Lufthansa had undergone a decade of fundamental change. Lufthansa was transformed from a state-owned, unprofitable national airline into one of the most profitable, privately owned aviation groups in the industry. The group turned a record loss of €350 million in 1992 into a pre-tax profit of €952 million in 2002. This financial result reflected Lufthansa’s major competitive advantage-its ability to respond rapidly, act flexibly, and withstand crises. Lufthansa proved its unique change management competence when it coped with September 11th, the

The risk of entry into the airline industry by potential competitors is low due to the “liberalization of market access, a result of globalization. According to the IATA (International Air Transport Association), about 1,300 new airlines were established in the last 40 years,” (Cederholm, 2016). The cost structure of businesses in an industry is a determinant of rivalry. In the Airlines Industry, fixed costs are high, because before the organization can make any sales, they must invest in air crafts, fuel and service employees. These items come attached with hefty price tags. Industries that require such enormous amounts of start-up capital as predicted by many analysts

Those who travel through the skies using the different airline companies, choose their carrier for various reasons. Some consumers are loyal to one airline, others may choose the airline due to price, and then others may choose it based on takeoff and land times, and then there are those who do not have a choice as only one airline services the location they need to arrive at. Regardless of the reason, when we all choose our next airline to travel, the majority of travelers will not choose Southwest Airlines for their heart shaped logo being installed on the seats of their latest 737-800 aircraft built by Boeing (SOUTHWEST, 2016). Southwest employees commit themselves to their jobs and are proud to put on their newest uniform with a heart logo to show every passenger the love they have for their employer. Companies with a good culture can change an employee’s behavior and attitude due to their surroundings and be far more successful, than a company who does not value the work or personal sacrifices their employees make. Sometimes a company’s success can draw attraction from another company looking for a takeover with the intension of increasing their bottom line. When this type of action occurs; they may be two different in the type of industries, just as night is to day, both organizations need to share a common ground to be as successful as they are separately. Nonetheless, there are some investors who would have expected Southwest to buy one the

Since the merger of U.S. Airways and American Airlines, most people would now agree we are living in the age of airline oligopoly. Oligopolies form when there’s a state of restricted competition, and new companies cannot break into the industry for reasons like high-entry costs or government restrictions. This is the condition of the airline industry, today. In order to breach the oligopolistic nature of the airline industry, airlines must be able to break through high barriers to entry such as: retaining substantial capital requirements, having the need for technical and technological ingenuity and jurisdiction of patent rights. In addition, airplanes must be purchased, employees must be trained and facilities must be procured. Even after all these expenditures, some airlines still experience substantial financial losses. As a result, most of these airlines experiencing a financial hardship are subject to an airline merger. For this reason, the major airlines in the United States now consist of four competing large carriers: American Airlines, Delta Airlines, United Airlines and Southwest Airlines. These companies have survived the deregulation of the airline industry and sustained their places at the top of the industry. In an effort to stand out in an oligopolistic industry, airlines must experience: economy of scale, growth through merger, mutual dependence and price rigidity and non-price competition.

In 2003, Lufthansa was facing intense competition from low-cost airline on short-haul domestic flights. In the fight for domination in the German skies, Lufthansa intend to match the low-cost rivals by expanding its own network of cut-price domestic and European services.

1) Introduction to airline industry 2) Drivers of globalisation using yip’s model 2.1 Market globalisation 2.2 Cost globalisation 2.3 Globalisation of government policies 2.4 Globalisation of competition 3) Localisation- arguments against globalisation 4) Pestle Analysis 5) Porter’s 5 forces analysis and their application to Airline industry 5.1 Rivalry amongst Existing Firms 5.2 Threat of substitution 5.3 Threat of new entrants 5.4 Power of customers 5.5 Power of buyers 6) Opportunities and Threats of Airline industry 7) Internal analysis of Virgin Airlines: Strengths and Weakness 8) Financial Statics of Virgin Atlantic Airline 9) Strategic Changes of Virgin

Deutsche Lufthansa AG, also known as Lufthansa (sometimes also as Lufthansa German Airlines), is the largest German airline and, when combined with its subsidiaries, also the largest airline in Europe, both in terms of passengers carried and fleet size. In this paper, I will initially examine Lufthansa organizational environment and behavior method. I will start of by analyzing the collaborative work environment, specifically discussing collaboration techniques, interaction between leaders and followers, and supportive communication. Therefore, covering the decision-making environment, risk management, and how the organization resolves conflict through the strategic negotiation process. Secondly, I will examine its approach to accomplish team-building and drive innovation.

First, we will start with a definition of the case study and the main stakeholders of Singapore Airlines. After that, in order to describe their strategy we will realize a SWOT analysis and a description of their competitive advantage. We will conclude with the strategy implementation.

Competing through alliances in the airline industry: The AIR FRANCE- KLM/DELTA AIR LINES JOINT VENTURE

In the past few years, the commercial air carriers have formed strategic alliances with each other which were not possible before this due to the previous regulations.

In terms of Management and Superviosry structures, Deutsche Lufthansa AG (DL) is a typical German Company. Company Mangement and strategic direction vest with The Executive Board. In doing so, the aim is to increase Company value sustainably. The Executive Board is appointed, supervised and advised by The Supervisory Board. The parent and