Additionally, low-cost carriers such as Ryanair, easyJet, and Eurowings also compete with Lufthansa by offering budget-friendly alternatives to travelers. Informa Markets, a trading division of Informa PLC. 6. Don't miss out! In future, these goals will be achieved by means of an integrated product approach. On the other hand they allow us to improve our content for you. Lufthansas major source of income comes from the sales of airline tickets for domestic and international flights, wherein it earns money based on the dynamic fares charged to travelers. Customer Relationships: The company focuses on strong customer relationships through personalized services, loyalty programs such as Miles & More, customer support, and various communication channels (e.g., email, social media, and customer care services). 4. The Gulf carriers' network of secondary European cities is also taking Europe-Asia traffic that used to connect through Frankfurt. Additionally, heavy investment in maintaining safety policies and adhering to environmental regulations contribute to overall costs. Their nationwide presence in their home markets enables them to offer an attractive range of flights and route networks. According to Lufthansa, industrial action by its pilots lowered the group's operating profit by EUR232 million in 2014 (this includes the impact of strikes by security personnel). As noted above, Lufthansa is increasing its presence in the LCC segment of the market with Eurowings. Lufthansa is one of the leading IT service provider for aviation industry, maintenance, meal services etc 3. This continuous exchange gives the Lufthansa Group an understanding of its different interest groups needs, expectations and wishes, which permits their inclusion in the Companys business practices. Set goals for the organization 6. competitive advantage A significant portion of the workforce is highly trained, and this leads to Following the sale of LSG groups European business in 2020, the disposal of the LSG groups remaining international business and AirPlus will be taken forward. What is the frequent flyer program offered by Lufthansa? Published by HBR Publications. Find more information regarding cookies on our Data Protection Declaration and regarding us on the Imprint. It has been reviewed & published by the MBA Skool Team. LGAV 3100 Final Flashcards | Quizlet Strategic Goals And Goals Of Lufthansa Group Lufthansa is one of the largest & founding member of Star Alliance 2. Finally, customer loyalty and personal interaction are to have a special status. The Lufthansa Group actively used the coronavirus crisis to accelerate its process of transformation and establish a good starting position in order to succeed in the future market environment. Lufthansa operates a frequent flyer program called "Miles & More" which rewards members with award miles and status miles for flights with Lufthansa and its partner airlines, redeemable for a variety of perks such as upgrades, free flights, and access to exclusive lounges. Below are the top 13 competitors of Lufthansa: Hence this concludes the Lufthansa SWOT analysis. Additionally, its extensive global network and Star Alliance partnership increase access to various routes and destinations. As Lufthansa continues to grow and evolve, it is well-positioned to remain a leader in the global airline market, setting a benchmark in excellence for others to follow.