HomeResearch & Knowledgeback to Homeback to Research & KnowledgeLufthansa: Going global, but how to manage complexity?back to

Case Study

Lufthansa: Going global, but how to manage complexity?

By Ulrich Steger and Simon Tywuschik

16 pages

December 2006

Order this case study

Reference: IMD-3-1746

This case addresses the development of Lufthansa’s business within the cyclical and global airline environment. First, we discuss the main features of globalization, its interrelatedness with complexity and the consequences for the airline industry. Then we analyze how Lufthansa has managed to remain one of the few profitable airline companies in the past by touching on issues such as extraordinary events, low-cost competition, governance structures, financial constraints and culture. For this, we consider passenger transportation data over time on a corporate and industry level. Also, we analyze the trend of flag carriers to cooperate within airline alliances such as Star Alliance, One World and Sky Team on the background of its management implications. Further, we present the evolution of the organisational structure of Lufthansa and the current organisation of Star Alliance. Given that the airline business will remain complex and cyclical, we finally ask if the current strategy of Lufthansa is sufficient to maintain its status as one of the few profitable airlines worldwide in the future.

Learning Objective

1. To get an idea about the interrelationship between globalization and complexity2. To understand how to manage complexity and to develop a successful business strategy in a highly volatile business environment 3. To discuss on how to survive as a flag carrier in the global airline industry

Keywords

Globalization, Complexity, Business Strategy, Airline

Settings

Germany
Lufthansa, Travel and Leisure, Airlines and Aviation
1980-2006

Type

Published Sources

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Optimizing omnichannel assortments and inventory provisions under the multichannel attraction model

Assortment optimization presents a complex challenge for retailers, as it depends on numerous decision factors. Changes in assortment can result in demand redistribution with multi-layered consequences. This complexity is even more pronounced for ...

General Management

By Andrey Vasilyev, Sebastian Maier and Ralf W. Seifert

in European Journal of Operational Research

August 2025, vol. 324, no. 3, pp. 799-813, https://doi.org/10.1016/j.ejor.2025.01.035

Article

The anatomy of family business conflict

Understanding conflict in family businesses is a complex but essential study area for practitioners and academics. To enhance theoretical precision and provide practical insights, this article presents a comprehensive framework of family business ...

Customer Centricity Family Business

By Marco Mismetti, Barbara Del Bosco, Cristina Bettinelli and Alfredo De Massis

in Journal of Family Business Strategy

June 2025, vol. 16, no. 2, 100660, https://doi.org/10.1016/j.jfbs.2025.100660

Article

Boundary conditions for organizations in the Anthropocene: A review of the planetary boundaries framework 10 years on

We systematically review business research concerning the planetary boundaries framework: A natural science framework that identifies nine Earth system boundaries that govern the safe operating space for humanity. Ten years after the introduction ...

Sustainability

By Amanda Williams, Paolo Perego and Gail Whiteman

in Journal of Management Studies

June 2025, vol. 62, no.4, pp. 1811-1846, https://doi.org/10.1111/joms.13150

Article

Training the retailers of tomorrow - Upskilling Dilemma

Natalia Wallenberg of Ahold Delhaize describes how one of the largest retailers in Europe is tackling the upskilling dilemma.

Business Transformation Strategy

in I by IMD

Article

Training the retailers of tomorrow

Discover how Ahold Delhaize tackles workforce upskilling with digital training, inclusive learning, and leadership development across global retail brands.

Business Transformation Digital Future Readiness Global Business Human Resources Innovation Talent Management

in I by IMD

Article

Management myth-busters: the innovation hero

Companies often fall into the trap of equating a cool-looking innovation lab with value-creating innovation output, investing in trendy office spaces, speaking in buzzwords, and hiring charismatic innovation leaders. However, these surface-level c...

By Joep de Caluwé

in I by IMD

Article

The Curiosity Farm - Growing innovation

The Curiosity Farm: Nestlé, Toyota & Intel spark innovation by nurturing curiosity, diversity, autonomy, and strong external partnerships.

in I by IMD

Article

The Curiosity Farm - Growing innovation

The Curiosity Farm: Nestlé, Toyota & Intel spark innovation by nurturing curiosity, diversity, autonomy, and strong external partnerships.

Innovation

By Shameen Prashantham and Dominique Turpin

in I by IMD

Article

When it comes to trust, your actions speak louder than words

People don’t work for companies. They work for leaders they trust. And that trust is being tested like never before.

in I by IMD

Article

When it comes to trust, your actions speak louder than words

People don’t work for companies. They work for leaders they trust. And that trust is being tested like never before.

Leadership

By Shelley Zalis

in I by IMD

Optimizing omnichannel assortments and inventory provisions under the multichannel attraction model

By Andrey Vasilyev Sebastian Maier and Ralf W. Seifert
in European Journal of Operational Research August 2025, vol. 324, no. 3, pp. 799-813, https://doi.org/10.1016/j.ejor.2025.01.035

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications