Lufthansa

In: Business and Management

Submitted By lovie28
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Pages 4
Describe the type of international strategy the company has chosen.
Since the airline industry was not financially stable due to wars and terrorism activities, Lufthansa became a member of the largest alliance of airlines called the Star Alliance. They used this as a strategy to survive in the globalization of the airline industry.
Lufthansa used this strategy because there were high barriers to mergers and acquisitions of airlines due to regulations. Therefore, the alliance gave companies the power to penetrate global markets and also manage their companies on an individual basis.

Explain what means the company has used to expand internationally.
Lufthansa is known for surviving financial turmoil in the past when others were engulfed in bankruptcy and receiving bailout packages their governments. Lufthansa was close to bankruptcy and facing fierce competition from low cost no frills airlines the company sold fifty percent of its stake in the Thomas Cook Tourism Company to KarstadtQuelle. They also sold parts of LSG Sky Chef which handled catering. Lufthansa wanted to raise money and cut cost. Before this strategy Lufthansa acquired Swiss Air as a way to expand globally. They used that strategy to look for share holdings in other airlines. That was the reason why they did away with Ground Globe Airport Service and financial divestments in order to concentrate on corporate strategy to expand internationally.

Identify and describe the elements and objectives of Lufthansa’s cooperative strategy.
Lufthansa decided to create what is called the Lufthansa Regional, where fifty percent of German and European flights belong to Lufthansa Group. Lufthansa also decided to lease aircrafts complete with crew and maintenance teams. This was operated via the cooperative wet lease department made up of Augsburg Airways and Contact Air. Lufthansa had partial…...

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