Out of company total fixed assets estimated at €10,002 billion, €3,273 billion is in aircraft and €63 mln.
A more in other tangible assets. The company has extensive fleet and is currently devoted to improving it in all the business segments, including passenger and freight services.
5. Apply the value chain model to Lufthansa. Based on this model, in which activities does Lufthansa have its main competencies?
In 2005, the biggest company generated Value Added was within the logistics and MRO (Maintenance, Repairment and Overhaul) business segments. Also, it services attributed a considerable share to the total company generated and added income.
6. Does Lufthansa have a sustainable competitive advantage in the global airline industry?
Lufthansa currently does not have a very sustainable competitive position within the global airline industry, but the current strategy plan of the company is very competitive and wise and accounts for all the company strengths within each business segment the company plays in, and within each region where the company exists and needs to strengthen the position, or whether the company is planning to enter. The strategy included Long Haul growth which shall enable to carry more passengers and develop partnerships with more airlines, improve the quality which shall lead to overall perfection of the company perception among passengers of all types, employ economies of scale from multi-hubbing, and achieve unit cost advantage from economies of scale after SWISS merger.
7. What is Lufthansa's business-level strategy? Is the strategy appropriate to offset the forces in the industry? Do you recommend any changes?
The current goal of the group is to become the largest group in Europe offering global...
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