Marketing Strategy and SWOT Analysis of Lufthansa Airlines (Essay Sample)

Lufthansa Airlines
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Lufthansa Airlines
Introduction
Currently, Munich airlines are changing their dynamics to international travel globally. Lufthansa is a company benefiting from the airline industry, and it has recorded significant revenues over the years. However, the emergency of serious carriers like Qatar and Emirates Airways poses a market challenge for the industry, putting Lufthansa airlines under threat. For this reason, there is a need to analyze the growth of Lufthansa Airlines through market strategy and SWOT analysis tool to underpin its success needs.
Overview
Lufthansa Airlines is the largest Airline in Germany, and it was among the five founder members of AllianceAlliance in 1997. However, this Airline offers its services and passenger subsidiary airlines like Eurowings and Swiss International Airlines. Lufthansa Airline owns various aviation companies, such as LSG Sky Chefs, which forms the crucial team. The Airline consists of over 680 aircraft, which makes it the largest Airline in the world. This Airline (Lufthansa airline) operates an Aviation Centre, primarily situated at the hub of Frankfurt. However, Lufthansa Airlines' secondary flight operations are maintained at Munich Airport. Lufthansa Airline has recorded a significant and consistent increase in revenues since its commencement. For example, in 1955 (its foundation), the company recorded $78 million in revenue; in 1960, it recorded $1,285 profit and so on. In 2003, Lufthansa implemented a new sales strategy to fit into the digital era and revolutionized the German travel business.
Lufthansa embraces a segmented business model to offer travel services to its customers, who are mainly business travelers. However, this report analyses the market strategy used by Lufthansa Airline. Presently, Lufthansa Airlines faces intense competition from other emerging brands like Emirates, Etihad, and Singapore Airlines. Regarding this challenge, the report is prepared using a SWOT analysis tool to analyze the strengths, weaknesses, threats, and opportunities for this Airline. However, the SWOT analysis will be applied in identifying and discussing four marketing objectives and recommendations for Lufthansa airline based on the initial analysis.
Marketing Strategy of Lufthansa Airline
A strategy is a relationship between external and internal factors in a company (Wurthmann, 2020). Lufthansa airlines embrace 7ps to analyze the brand of its marketing framework, which includes the product, promotion, price, place, process, people, and physical evidence (Hashim & Hamzah, 2017). However, these marketing strategies help Lufthansa to brand itself competitively and achieve its objectives in the markets. For instance, Lufthansa's product strategy enables it to offer international flights to all its clients. Lufthansa Price strategy allows Lufthansa Airlines to charge relatively low prices to its customers based on their traveling classes like first class, business, and Premium Economy classes. Lastly, Lufthansa uses Advertising and Promotional strategy to widen its customer base by creating awareness worldwide.
Strategic Analysis Using SWOT Analysis Tool
A company uses various strategic tools to gain competitiveness by analyzing its strategies. The tools include Porter's generic strategy, SWOT analysis, PESTEL, and Ansoff's matrix. However, the choice of these strategic tools depends on the company's objectives, vision, and mission. According to Jarzabkowski et al. (2009), SWOT analysis is the widely and influential tool used for strategic analysis. SWOT or SOTW is an acronym that stands for strengths, opportunities,