Corporate Strategy defines the path of a company to achieve long-term goals and objectives. It plays a crucial role in determining the competitive position of an organization. The corporate strategy incorporates all core factors to ensure the success of an organization. Depending on the nature and objectives of the organization, the components of a corporate strategy varies. It is only the corporate strategy that integrates and links the vision, goals, business model and help in appropriate allocation of resources and finally in decision making process. The same is applied to the airline industry as well. The companies like Lufthansa and Emirates Airways also have their own corporate and competitive strategies. Both of the organizations offers similar kind of services, but their strategies varies as both have their own set of goals and targets. Therefore the corporate and competitive strategies of both the organizations have been evaluated in terms of their competitive position, value creation for the stake holders, and strategic choice.
1.
…show more content…
COMPETITIVE POSITIONS
1.1 LUFTHANSA
Lufthansa Group is an aviation company with world-wide operations. The Deutsche Lufthansa AG traces its history to 1920s, as a pioneer in the German Aviation industry. It has five business segments and all are market leaders in their competitive areas. It has a total of almost 500 subsidiaries. (Lufthansa Group, Company Potrait).
Deutsche Lufthansa AG has typical Germany style management and supervisory structure. The Executive Board defines the strategic decisions. The strategic decisions revolve around four main objectives.
The four strategic objectives of Lufthansa are:
• Increase company value
• Expand the market position of both airlines and service companies by actively shaping the airline industry.
• Continually improve on the customer