(8 pages of text)
Tremendous changes in the global competitive landscape threaten Deutsche Lufthansa AG, the largest airline group in the world. Three large Gulf carriers, Emirates, Etihad Airways and Qatar Airways, as well as Turkish Airlines, now stand to compete with Lufthansa on the traditionally profitable long-haul segment. Chairman of the executive board and chief executive officer has to act quickly if Lufthansa is to keep its top spot. Having ignored the threat from low-cost airlines in the past, Lufthansa must now be better prepared to respond. It is crucial that Lufthansa finds adequate strategic options for sustaining and further expanding its market-leading position.
This case is designed primarily for use in MBA program modules on strategic management or general management. To determine Lufthansa’s competitive position and provide strategic recommendations, class discussion can focus on the following:
External analysis including the following:
- Political, economic, sociological and technological (PEST) environmental influences in the European airline industry.
- Application of Porter’s five forces model to analyze the profitability of the industry and determine the sources of competitive pressure.
- In-depth analysis of competitors using the provided data.
Internal analysis including the following:
- Determine strengths and weaknesses as part of a SWOT analysis.
- Resource analysis (VRIO framework) to conduct an internal analysis to identify competitive advantages.
Transportation and Warehousing
Germany; Middle East, Large, 2012
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