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lufthanasa
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Purpose The main purpose I would like to face in this analysis is how can Lufthansa continued to grow and be successful in their industry. External Analysis Demographics- Lufthansa’s demographics consisted of all people who like to travel, from business people to vacationers, that are mostly coming to and from Europe and Germany. Economics- There is a direct relationship between the global economy and Lufthansa’s earnings as a company. For example, if the economy is in a recession then people are less likely to travel. This will result in fewer revenues for the company. The economics structure of the airline industry also changed to competition between networks, instead of between airlines. Political/Legal- The Gulf war and recession in early 1990’s lead to break down of the airline market for Europe and all over the world. The government control of Lufthansa created inflexibility and they could not adapt to this change. Also German reunification led to unrealized expectation for the company, resulting in more losses for the company. Sociocultral- The strategic alliance with STARS allowed Lufthansa to create a new company culture of flexibility, informal, and more decentralization company. This global alliance also made it difficult to fuses all the different corporate cultures together as a whole. Global- Lufthansa global alliance reduces the barrier to entry for new foreign markets. For example, Lufthansa’s Passenger Service segment “Lufthansa German Airlines”, can use connecting flights with other STARS members to travel to other countries outside their air routes.
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Paper Information
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Title: lufthanasa
Words: 1149
Rating: None
Pages: 4.6
submitted by: sdchin97
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