Lufthansa Corporate Strategy
Corporate Strategy defines the path of a company to achieve long-term goals and objectives. It plays a crucial role in determining the competitive position of an organization. The corporate strategy incorporates all core factors to ensure the success of an organization. Depending on the nature and objectives of the organization, the components of a corporate strategy varies. It is only the corporate strategy that integrates and links the vision, goals, business model and help in appropriate allocation of resources and finally in decision making process. The same is applied to the airline industry as well. The companies like Lufthansa and Emirates Airways also have their own corporate and competitive strategies. Both of the organizations offers …show more content…
COMPETITIVE POSITIONS
1.1 LUFTHANSA
Lufthansa Group is an aviation company with world-wide operations. The Deutsche Lufthansa AG traces its history to 1920s, as a pioneer in the German Aviation industry. It has five business segments and all are market leaders in their competitive areas. It has a total of almost 500 subsidiaries. (Lufthansa Group, Company Potrait).
Deutsche Lufthansa AG has typical Germany style management and supervisory structure. The Executive Board defines the strategic decisions. The strategic decisions revolve around four main objectives.
The four strategic objectives of Lufthansa are:
• Increase company value
• Expand the market position of both airlines and service companies by actively shaping the airline industry.
• Continually improve on the customer
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3.1 LUFTHANSA
The main strategic choice of Lufthansa Group is to keep the cost saving, reducing intermediaries, controlling the air ticketing fees, leasing regional airlines. This can be done by focusing on cost leadership, maintain low debt rating and have a good financial investment stand.
By implementing IT CRM, the group strategy is to focus on customer segmentation. High level of profitability is expected with this CRM strategy. The changing customer needs can be accounted to maximizing profit potential and the customers can be easily differentiated. With the implementation of some of the new technologies like mobile device check-in, the Group can provide service to a wider audience.
One more strategic choice is to acquire stake in other airlines in EU and other countries. This will increase the profit potential, Start alliances reaching global travel, improves air route network and increases availability to loyal Lufthansa customers and increases its presence in current, emerging and new markets.
3.2
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