German Airlines Marketing Strategy

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ABSTRACT: German airlines LUFTHANSA is one the oldest airlines of the world and it is the largest carrier in Europe. In this paper a detailed analysis of the positioning strategy is taken in account. Further the various threats to the company are taken into consideration and the potential of each threat has been calculated theoretically. The reason for the downfall of the company during the recent years of recession are analyzed and the ways to boost the economy of the company, the most valuable marketing strategy that should be followed by LUFTHANSA is given in detail. Though very
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The place of birth of the company is Cologne, Germany. By improvements in the navigation technology and breakthroughs in the airplane technology, it greatly influenced the reliability of the commercial flights and also decreased the time of flight in just around 30 years of time. After the Second World War came to an end, it started focusing on mass air transport systems which will be more profitable at that time as it was the time when the jet engines were introduced in the market which make it possible for covering long distances all over the globe. The company started focusing on transporting people across the continents and also in the Europe by the use of the jet engines. Various international flights came into existence around 1960s due to the company’s rapid expansion as the airlines rates were lowered due to technological advancements. It was all going good till the 1970’s until the advent of the fuel crisis. Due to increase in the fuel prices, the cost of Air tickets also increased resulting in low output in the form of passengers. The passengers started feeling very high pressure on their pockets for traveling through air. But the company coped with the crisis by the production of more fuel efficient engines using the best engineer minds and continued to increase its market share. It is the founding member of the Airline alliance (Air Canada, Scandinavian Airlines, Thai Airways, and United Airways). The alliance proved to be very helpful as it provided with profits to everyone as it was following a common marketing strategy. As the fuel crisis paved its path the company suffered from huge loss during 2012 and had to cut down its work force by 1/5th as it was not able to afford that much expense. It also started its low cost unit famously known as
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