Swot Analysis of Lufthansa

1500 Words Aug 30th, 2012 6 Pages

An analysis of SWOT and KSF’s

Table of contents:

1.0 Terms of reference:

2.0 Procedure:

3.0 Findings:

3.1 SWOT:
3.1.1: Strengths:
3.1.2 Weaknesses:
3.1.3 Opportunities:
3.1.4 Threats:
3.2 KSF’s:
3.2.1 KSF by industry:
3.2.2 KSF by Organisation:
3.2.3 KSF by Customers:
4.0 Recommendation:

5.0 Conclusion:

6.0 Bibliography:

7.0 Appendix A – Critical Source Evaluation

1.0 Terms of reference: This is a 1000 word report by me analysing the Strengths, Weaknesses, Opportunities, Threats and key success factors for the German airline giant (€17bn turnover) Lufthansa.
The report will be handed in on October 25th in the BUS101 1-hour seminar.

2.0 Procedure: This report is based solely on secondary research, which in hand is
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(Lufthansa Press Release, 2006)

3.4 Threats: All forms of existing competition, especially low-cost airlines present a threat to Lufthansa. They steal customers, and lower profits for the company.

Rising fuel prices have already forced them to add a further fuel-surcharge to long-haul flights (Lufthansa fuel prices, 2006) The volatility of the oil market means that cost planning is hard, and fuels obviously is a large cost for airlines.

Acts of God and terrorism will always present a threat to Lufthansa; however, planning for these is impossible. The only way to minimise losses is a contingency plan.

Lufthansa had to pay a $85 million out-of-court settlement over cargo price fixing allegations. (Lufthansa Press Releases, 2006), which is a large sum considering an operating profit of $698 million. (Lufthansa Financials, 2006)

A massive threat is the theoretical chaos that a strike could cause to Lufthansa, as it is the largest unionised airline in the world.

3.2 KSF’s:
There are several factors which give Lufthansa a competitive advantage over its rivals. These factors are known as key success factors.

3.2.1 KSF by Industry:
As mentioned previously the Lufthansa group has several sub-companies; These include the worldwide number one airline caterer, international scheduled airfreight businesses, one of the worlds leading IT service providers for the airline industry and several other successful companies. (Worldwide Number

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