The purpose of this assignment was to analyse the Lufthansa Group's new strategy, evaluate the opportunities and the weaknesses of this concept, and to develop further recommendations for action.
Table of Contents
- Introduction
- Introduction to the Lufthansa Group
- Market Analysis
- Low cost airlines
- Premium airlines
- Point-to-Point vs. Hub-and-spoke
- Lufthansa's new strategy
- Eurowings
- Lufthansa
- Competitive evaluation
- Theoretical background
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
Objectives and Key Themes
This assignment aims to analyze Lufthansa's new strategy, focusing on the introduction of Eurowings and its implications for the company's competitiveness. The analysis evaluates the opportunities and weaknesses of this new approach, and provides recommendations for future action.
- The impact of low-cost carriers on the aviation industry
- Lufthansa's response to increased competition
- The strategic implications of separating passenger transport into premium and low-cost segments
- Competitive evaluation of Lufthansa's new strategy
- Recommendations for future action
Chapter Summaries
Introduction: This chapter introduces the dramatic changes in the European air passenger transport industry over the past 15 years, highlighting the rise of low-cost carriers and state-subsidized Arabian airlines. It explains how these changes have led to increased competitive pressure and profit fluctuations for established airlines like the Lufthansa Group. The chapter then sets the stage for the analysis by explaining Lufthansa's new strategy in 2014, which involved separating its passenger transport segment into premium hub airlines and the low-cost carrier Eurowings, aiming for competitiveness in both the low-cost and premium markets, including entering the low-cost long-haul market. The overall purpose of the assignment, to analyze this new strategy, is clearly defined.
Introduction to the LH Group: This chapter provides an overview of the Lufthansa Group's structure in 2014, detailing its organization into various business segments: Passenger Airline Group, Logistics, Technique, Catering, and Other business segments. It highlights the group's global reach and its presence in diverse areas of the aviation industry. This section lays the foundation for understanding the context within which Lufthansa's new strategy was implemented. The diverse range of segments showcases Lufthansa's established position and the scale of its operations, setting a context for the changes to come.
Market Analysis: This chapter delves into a detailed analysis of the airline market, specifically focusing on the dynamics between low-cost carriers, premium airlines, and different operational models (Point-to-Point vs. Hub-and-Spoke). The analysis likely examines market share, pricing strategies, and customer preferences to provide a comprehensive overview of the competitive landscape Lufthansa operates in. This detailed market analysis serves as a crucial backdrop to understanding the rationale behind Lufthansa’s new strategic move. The contrasting strategies and business models of different types of airlines form the basis of understanding the strategic decision-making of the Lufthansa group.
Lufthansa's new strategy: This chapter provides an in-depth examination of Lufthansa's new strategy, specifically detailing the roles and objectives of both Eurowings and the remaining premium brands within the group's portfolio. It likely explores the strategic rationale behind separating the low-cost and premium operations, aiming to gain competitive advantage in both segments. This is a critical chapter that delves into the core of the assignment, providing insight into the reasoning and intended outcomes of the strategy. Understanding the division of roles and intended outcomes is key to evaluating the overall success of Lufthansa's new strategy.
Competitive evaluation: This chapter evaluates Lufthansa's new strategy using a structured approach, likely incorporating a theoretical framework and a SWOT analysis. The theoretical background provides context for assessing the competitive landscape. The SWOT analysis identifies internal strengths and weaknesses, as well as external opportunities and threats, providing a balanced assessment of the strategy's potential for success and its vulnerability to market forces. This chapter offers a comprehensive evaluation of the strategy's viability and its likely impact, demonstrating a critical assessment of the strategic move. This section provides crucial insights into the strengths, weaknesses, opportunities, and threats associated with the implemented strategy, leading the reader to form a comprehensive evaluation.
Keywords
Lufthansa Group, Eurowings, low-cost carriers (LCCs), premium airlines, Hub-and-spoke model, Point-to-point model, strategic management, competitive advantage, market analysis, SWOT analysis.
Lufthansa Group's New Strategy: FAQ
What is the main topic of this document?
This document provides a comprehensive preview of an analysis of Lufthansa's new strategy in 2014, which involved separating its passenger transport into premium and low-cost (Eurowings) segments. It covers the background, market analysis, strategic implications, competitive evaluation, and recommendations.
What are the key themes explored in the analysis?
The key themes include the impact of low-cost carriers on the aviation industry, Lufthansa's response to increased competition, the strategic implications of separating passenger transport into premium and low-cost segments, a competitive evaluation of the new strategy, and recommendations for future action.
What is the structure of the Lufthansa Group as presented in the document?
The document describes the Lufthansa Group's structure in 2014 as encompassing Passenger Airline Group, Logistics, Technique, Catering, and Other business segments, highlighting its diverse operations and global reach.
What is the market analysis focusing on?
The market analysis focuses on the dynamics between low-cost carriers, premium airlines, and the Point-to-Point versus Hub-and-Spoke operational models, examining market share, pricing strategies, and customer preferences.
How is Lufthansa's new strategy described?
Lufthansa's new strategy is described as separating its passenger transport into premium brands and the low-cost carrier Eurowings, aiming for competitiveness in both the low-cost and premium markets, including the low-cost long-haul market.
What methodology is used to evaluate Lufthansa's new strategy?
The competitive evaluation uses a structured approach incorporating a theoretical framework and a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to assess the strategy's potential for success and vulnerability to market forces.
What are the chapter summaries included in the preview?
The preview includes summaries of the introduction (setting the context and outlining the purpose), an introduction to the Lufthansa Group (describing its structure and operations), market analysis (detailing the competitive landscape), Lufthansa's new strategy (explaining the rationale and objectives), and competitive evaluation (presenting the SWOT analysis and overall assessment).
What keywords are associated with this analysis?
Keywords include Lufthansa Group, Eurowings, low-cost carriers (LCCs), premium airlines, Hub-and-spoke model, Point-to-point model, strategic management, competitive advantage, market analysis, and SWOT analysis.
What is the overall objective of this analysis?
The objective is to analyze Lufthansa's new strategy, focusing on the introduction of Eurowings and its implications for the company's competitiveness, evaluating opportunities and weaknesses, and providing recommendations for future action.
What type of document is this preview?
This is a comprehensive language preview, including the title, table of contents, objectives and key themes, chapter summaries, and key words, intended for academic use and analysis.
- Quote paper
- Erik Somssich (Author), 2017, Strategic assessment of the Lufthansa Group's introduction of Eurowings and its associated new strategy, Munich, GRIN Verlag, https://www.grin.com/document/358598
