Lufthansa SWOT Analysis, Competitors & USP
Lufthansa SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Lufthansa, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Lufthansa to benchmark its business & performance as compared to the competitors, and make strategic improvements. Lufthansa is one of the leading brands in the airlines sector.
The article below lists the Lufthansa SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Lufthansa SWOT Analysis:
In this article:
SWOT Analysis of Lufthansa
For Lufthansa, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
Lufthansa Strengths
The strengths of Lufthansa looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Lufthansa :
1. Lufthansa is one of the largest & founding member of Star Alliance
2. Lufthansa is one of the leading IT service provider for aviation industry, maintenance, meal services etc
3. Strong image associated with German Engineering
4. Lufthansa is a strong status symbol amongst Corporate/Business men
5. Has a strong workforce of over 100,000+ employees
6. Lufthansa serves over 200 international destinations in nearly 80 countries
7. Lufthansa has a strong brand presence owing to sponsorship and marketing efforts by the company
8. Exclusive services for customers like lounges, frequent flyer programs, first/ business class services etc
9. Lufthansa, apart from passenger airlines, has a strong presence in cargo and logistics as well
Lufthansa Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Lufthansa SWOT Analysis:
1. Past incidents and accidents often affect the brand image
2. Market share growth of Lufthansa restricted due to pressure from competition
Lufthansa Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Lufthansa SWOT Analysis:
1. Being the largest member of Star Alliance Lufthansa have scope to acquire some smaller players
2. More penetration in emerging economies tapping the high-end customers
3. Improvement in experience and high-quality services to customers
Lufthansa Threats
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Lufthansa are as mentioned:
1. Increased international competition affects market share of Lufthansa
2. Low cost airlines affect passenger volume of the airlines
4. Rising fuel prices, high labor costs and govt regulations affects margins
Lufthansa Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 13 competitors of Lufthansa:
1. Air India
6. Qantas Airways
7. Emirates
10. Air France
11. Virgin Atlantic
12. United Airlines
13. KLM
Hence this concludes the Lufthansa SWOT analysis.
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About Lufthansa
| Lufthansa Overview | |
|---|---|
| Parent Company |
Lufthansa Group |
| Category |
International |
| Sector | |
| Tagline/ Slogan |
There's no better way to fly; Non stop you |
| USP |
Lufthansa is one of the largest airline in Europe in terms of overall passengers carried and fleet size |
| Lufthansa STP | |
| Segmentation |
Passengers preferring comfort/reliability/quality service |
| Target Market |
Upper middle class/ business men / leisure travellers |
| Positioning |
Lufthansa gives the best airline service non stop |
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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