The purpose of this paper is to research how mobile services impact the interaction between airlines and passengers. The paper begins with a PEST analysis of the European airline industry and focuses on technological changes. It continues with a SWOT analysis of Lufthansa, where we interlink mobile technology as a platform which could reduce costs for the airline. In-depth research on mobile services and their impact on the interaction between airlines and passengers is performed by evaluating different mobile services along Lufthansa's value chain, namely the airline's activities in operations, outbound logistics and marketing and sales.
We claim that the interaction through mobile services is limited to one-way interaction, where airlines embrace the mobile services to perform cost reduction along their value chain, and neither offer two-way interaction with their passengers nor asking them to co-create the brand or the product. The current wireless mobile services are already offered via the internet, and allow a better and direct service for passengers. Mobile services are necessary for airlines, so they are not seen as out of date, but it does not mean that having mobile services contributes to having a competitive advantage. On the contrary, not having mobile services results in strategic disadvantage.
Table of Contents
1. Introduction
2. PEST analysis of the European airline industry
2.1. Political factors
2.2. Economic and ecological factors
2.3. Social factors
2.4. Technological factors
3. SWOT analysis of Lufthansa
3.1. Strengths of Lufthansa
3.2. Weaknesses of Lufthansa
3.3. Opportunities of Lufthansa
3.4. Threats of Lufthansa
4. The value chain of an airline
4.1. The impact of mobile services on operations
4.2. The impact of mobile services on outbound logistics
4.3. The impact of mobile services on marketing and sales
3. Conclusion
Research Objective and Key Themes
This paper investigates the influence of mobile services on the interaction between airlines and passengers, specifically analyzing the European airline industry and the strategic case of Lufthansa. It aims to determine whether mobile integration fosters genuine two-way engagement or serves primarily as a cost-reduction tool within the airline's value chain.
- External macro-environmental analysis of the European airline industry via PEST.
- Internal strategic assessment of Lufthansa through SWOT analysis.
- Evaluation of mobile service integration across airline value chain activities.
- Examination of mobile technology's impact on passenger interaction and customer relationship management.
- Assessment of whether mobile services provide a sustainable strategic competitive advantage.
Excerpt from the Book
4.1. The impact of mobile services on operations
The category of operations is defined as the activities involved in transforming inputs into the final product form (Porter 1995). In the airline industry, it means receiving the outputs of inbound logistics such as flight scheduling and transforms it to a specific product of aircraft operations – which aircraft to operate on which route.
Passengers are empowered by the mobile technology and now demand a direct contact with airlines. According to IATA, passengers expect the airline to notify them directly on any changes in their journey, whether or not they had directly booked the ticket from the airline (69% of all participants). Passengers also want to have the ability to track their belongings on real time (81% of all participants), use technology to check in (75%) and being able to buy ancillary products for personalizing their journey (69%) (IATA annual review 2013).
Chapter Summary
1. Introduction: Presents the rise of mobile wireless devices and defines the paper's scope, focusing on the shift from macro-level industry analysis to micro-level value chain activities at Lufthansa.
2. PEST analysis of the European airline industry: Examines external political, economic, social, and technological factors that shape the competitive landscape for European airlines.
3. SWOT analysis of Lufthansa: Analyzes Lufthansa's internal strengths and weaknesses alongside external opportunities and threats to understand its strategic position.
4. The value chain of an airline: Utilizes Porter's value chain model to evaluate how mobile services specifically influence airline operations, outbound logistics, and marketing and sales.
3. Conclusion: Summarizes findings, arguing that mobile services primarily drive cost reduction rather than strategic differentiation, and suggests social media as a key area for future interaction research.
Keywords
Aviation Management, Mobile Services, Lufthansa, PEST Analysis, SWOT Analysis, Value Chain, M-commerce, Passenger Interaction, Customer Relationship Management, CRM, Digital Strategy, Airline Operations, Outbound Logistics, Mobile Technology, Competitive Advantage
Frequently Asked Questions
What is the core focus of this research?
The paper explores how mobile services influence the interaction between airlines and their passengers, specifically investigating if these technologies enhance the passenger-airline relationship or act as a tool for operational cost optimization.
Which airlines are analyzed in this paper?
The study provides an external analysis of the European airline industry and a detailed internal case study of Lufthansa to examine the practical implementation of mobile strategies.
What is the primary goal of the researchers?
The researchers aim to identify if mobile services offer a strategic competitive advantage or if they have become a necessary standard that, if neglected, results in a competitive disadvantage.
Which theoretical frameworks are applied?
The authors employ the PEST analysis for the external environment, the SWOT analysis for Lufthansa's strategic position, and Michael Porter's value chain model to assess specific business activities.
What aspect of the airline business is covered in the main body?
The main body focuses on how mobile technology impacts operations, outbound logistics, and marketing and sales activities within an airline's value chain.
What characterises the mobile services discussed?
The paper identifies these services as primarily "one-way" tools that facilitate cost reduction, such as mobile check-in and digital ticket issuance, rather than enabling interactive, "two-way" passenger co-creation.
Does the paper conclude that mobile services are a strategic advantage?
No, the authors conclude that mobile services are not a strategic advantage because they can be easily copied by competitors; however, failing to offer them is considered a significant strategic disadvantage.
How does the paper suggest airlines might change baggage handling?
The research discusses the potential of RFID technology and the "BAG2GO" project, which could allow passengers to track their luggage in real-time using their own mobile devices.
- Citar trabajo
- Markus Biedermann (Autor), Doron Levy (Autor), 2013, The Impact of Mobile Services on the Interaction between Airlines and Passengers, Múnich, GRIN Verlag, https://www.grin.com/document/288252
