Deutsche Lufthansa AG Swot Analysis Paper
The Deutsche Lufthansa AG is now the largest aviation company both in Germany and in Europe. Its name derives from Luft (which is the German word for air) and Hansa (a latin word meaning guild). It traces back its history to 1926. Although its services were paused during the Second World War, in 1953 in an effort to create a national airline for West Germany, a company called Aktiengesellschaft für Luftverkehrsbedarf (Luftag) was formed in Cologne. With over 620 aircrafts, 118,000 employees and numerous subsidiaries as Swiss International, Austrian Airlines, Germanwing and Lufthansa Technik achieved a total operating revenue of EUR 30 billion for 2013. It is also one of the founding members of Star Alliance, created in 1997. It operates through …show more content…
There are low switching costs between firms, because customers always look for the best flight possible. They need to know all the flight details regarding timing and safety. There is some brand loyalty and each company has a niche. Lufthansa’s main target audience is frequent international business class travelers. They need certain amenities (i.e. dense route network, comfortable lounges, etc.) and quality service. Most of them have a membership card and earn points. Lately Lufthansa launched a new campaign “Nonstop you” and try to target also leisure travelers.
Lufthansa focuses its activities on the core competencies of its five strategic business segments: passenger airline group, logistics, maintenance repair overhaul (MRO), catering, IT services.
Passenger Airline Group: transports more than 100 million passengers. Their market strategy is high quality, safety, punctuality, reliability and professional customer services, as well as ecological awareness.
Logistics: places among world’s biggest cargo carriers and serves around 300 destinations globally.
MRO: offers its services to more than 770 airlines and other aircraft
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