Lufthansa: Going global, but how to manage complexity?
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.
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
Lufthansa, Travel and Leisure, Airlines and Aviation
1980-2006
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]
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.
Research Information & Knowledge Hub for additional information on IMD publications
The case follows Oliver Freiland, a former Roland Berger consultant with a successful corporate career, in his quest for the right acquisition target. In 2015 Oliver finally took a leap of faith to buy his way into entrepreneurship by acquiring He...
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2514 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2515 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2601 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications