Abstract

The report illustrates the competitive strategy of Lufthansa Airline –A GermanAirline that initiated its business in late 80s.Over the period of time, the company increased in profits by offering the cost effective travel solutions alongwith exquisite long haul services and customer support, making it a strong and competitiveplayer in the European market.

The report further entails the market situationand the industry analysis, which depicts the high bargaining power of the buyer, due to high substitution,low switching cost and availability of otheralternatives.In addition, the supplier power isalsohighdue to high dependence on Boeing for the aero planes and fuel provides for the fuel.

Apart from this, the threat of substitution is also high in the market due to strong railways and bus system in Europe.Lastly, the extent of rivalry is also high to medium with low threat of new entrants in the markets.Though from suchan analysis, the market may seem saturated, however,Lufthansa has maintained its position in the market through integrating the costleadershipstrategy alongwith the differentiation strategy. Such has allowed it to remain top in the Europeanmarket even in the times of financialcrisis, making it a sustainable player in the market.

Keywords:Competitive edge, Value proposition, Demand and Supply, Porter 5 Forces

Lufthansa Airline Harvard Case Solution & Analysis

INTRODUCTION

As we all know Lufthansais the biggest aviation alliance in Europe. Lufthansa is also one of the Star Alliance of five founding members. It’s headquartered in the Cologne, Germany. It operates the main function ofthe passengers and services for cargo in the aviation centers which are present in the Frankfurt Airport and Munich airport. Lufthansa is aGerman Airline and currently it works in 73 different countries across 4 continents with 93000 employees across the world. It has more than 550 subsidiaries and all are affiliated companieswith emergence of network airlines, point-to-point airlines and aviation services, IT services. LufthansaAirline group is the only Airline company thattook a record of carrying 109.7 billion passengers in 2016.

LufthansaAirlinewas founded in the 1926 by the name of Deutsche Luft Hansa. It served only twenty years after that its services were suspended by the end of the Nazi rule in the Germany. After some time, the company reconstructed by the name of Aktiengesellschaft für Luftverkehrsbedarf (Luftag) in 1953 and also founded a headquarters in Cologne, Germany. In addition, the company brought the trademark and name of Lufthansa in 1954. After that, they started the task of acquiring airplanes, pilots and engineering trainings, infrastructures of the buildings for the staff and passengers, acquiring the essential components or materials that provide for the maintenance of airplanes. Furthermore, they succeeded to take off the two Convair airplanes from Hamburg to Munich in 1955. The company has transferred long distance routes for flight to destination operations in America, Africa and Far East. The company has continuously grown with two powerful aircrafts, Boeing 747-8 and the Airbus A380. Currently,Lufthansa consists of 424 aircrafts.

OBJECTIVES

Every Company has its objectives that are achieved. LufthansaAirline also hasan objective to make profit as much as possible. They also have tried to provide the best services to the customers...............

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