This paper analyses Eurowings' marketing strategy by applying different macro- and microeconomic tools in order to consider competition, political forces, environment influences and economic impacts. The goal is to examine in particular Eurowings' low cost long haul business model and which strategy was selected by the Lufthansa Group and how this strategy works. Additionally, the objective is to analyse Eurowings European competitors, with the major goal first to understand Eurowings' market position in Europe. Subsequently, the results of this strategic assessment show Eurowings' strengths, weaknesses, opportunities and threats.
The aviation industry in the 21st century has been changing continously. The low-cost carrier business model has revolutionised the commercial transport industry. Commercial Aviation industry and its development is positively influenced by external factors such as politival, social, economic and technological developments. Airlines are therefore forced to adjust their business models to the external factors and new market requirements, as well as to introduce new business concepts with the objective to gain more market shares and competitive advantages.
The European market is divided into different low-cost carriers, each fighting for customers, image, and profit. Eurowings is a new player in this low-cost business, in particular in the market for long-haul destinations, which could become an opportunity to be the first successful low-cost German airline and the third biggest low-cost carrier in Europe.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- Table of Contents
- List of Figures
- List of Tables
- List of Abbreviations
- Introduction
- Problem definition and current situation
- Objective
- Methodology
- Structure of the thesis
- Strategic Concepts of Macro- and Micro-environment
- Macroeconomic strategic concepts
- PEST Analysis
- Porter's 5 Forces
- Strategic concepts
- 7S Framework by McKinsey
- Advantages and disadvantages
- Basics of Air Traffic and Aviation Industry
- Commercial aviation industry
- Historical development
- Technological revolution
- Different types of Air Transportation
- Different types of Air Transport: Airline Business Model
- Different types of Air Transport: Network of Operations
- Different types of Air Transport: Types of flight routes
- Different types of Air Transport: Types of Strategic Networks
- Different types of Air Transport: Types of aircrafts
- Research Methodology
- Research questions
- Research design
- Web survey
- Eurowings' Assessment
- Eurowings' connection to Lufthansa
- Eurowings' operations network
- Eurowings' product and service
- Eurowings' sales and marketing campaigns
- Strategic Analysis of Eurowings' Long-Haul Concept
- Feasibility of Eurowings with PEST Analysis
- Political factors
- Social factors
- Economic factors
- Technological factors
- Feasibility of Eurowings with Porter's 5 forces
- Intensity of rivalry
- Risk of entry by potential competitors
- Power of buyers
- Threat of substitute
- Power of suppliers
- Feasibility of McKinsey 7S Framework
- Hard elements
- Soft elements
- Empirical Analysis of Eurowings Long-haul Concept
- Pre-test
- Assessment and implementation
- Survey results and sample
- Conclusion and Results
- Macro and microeconomic results
- Assessment results
- Method discussion
- Outlook and Recommendation
- List of references
- Attachments
- ITM Checklist
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This master thesis aims to analyze the strategic feasibility of Eurowings' long-haul low-cost concept, focusing on its operations from Cologne Bonn Airport. The study investigates whether this new player in the European long-haul market can achieve success by leveraging its connection to Lufthansa and establishing a competitive advantage within the low-cost carrier landscape.
- Analysis of the macro- and micro-economic environment surrounding Eurowings' long-haul concept using PEST analysis and Porter's five forces
- Evaluation of Eurowings' strategic positioning and business model based on the 7S Framework by McKinsey
- Assessment of Eurowings' operations network, product offerings, and marketing campaigns
- Exploration of the feasibility of Eurowings' concept through empirical research and a survey of relevant stakeholders
- Identification of key challenges and opportunities for Eurowings in the long-haul market
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The chapter establishes the context of the research by introducing the emergence of Eurowings as a low-cost, long-haul carrier under the Lufthansa Group. It outlines the research problem, objectives, methodology, and the structure of the thesis.
- Strategic Concepts of Macro- and Micro-environment: This chapter delves into the macro- and micro-economic factors influencing the aviation industry. It explores the application of PEST analysis and Porter's five forces to understand the competitive landscape surrounding Eurowings.
- Basics of Air Traffic and Aviation Industry: This chapter provides a comprehensive overview of the commercial aviation industry, including its historical development, technological advancements, and various types of air transport operations.
- Research Methodology: This chapter outlines the research design, research questions, and the web survey conducted for this study. The survey aimed to gather insights from stakeholders regarding Eurowings' long-haul concept.
- Eurowings' Assessment: This chapter presents a detailed analysis of Eurowings' connection to Lufthansa, its operational network, product and service offerings, and marketing campaigns.
- Strategic Analysis of Eurowings' Long-Haul Concept: This chapter analyzes the feasibility of Eurowings' concept through the lens of PEST analysis, Porter's five forces, and the McKinsey 7S Framework. It explores the strengths and weaknesses of Eurowings' approach in the context of the competitive landscape.
- Empirical Analysis of Eurowings Long-haul Concept: This chapter presents the results of the pre-test, the implementation of the survey, and analyzes the collected data to draw conclusions about stakeholders' perceptions of Eurowings' long-haul concept.
Schlüsselwörter (Keywords)
This master thesis explores the topic of low-cost, long-haul airlines and their strategic feasibility. It focuses on Eurowings, a subsidiary of Lufthansa, and analyzes its business model, market position, and competitive advantages in the context of the European aviation industry. Key concepts include strategic analysis, PEST analysis, Porter's five forces, 7S Framework, low-cost carriers, long-haul destinations, and empirical research.
- Quote paper
- Maxim Lachmann (Author), 2016, Low Cost Concept for Long-Haul Destinations. A Feasibility Analysis of Eurowings' Strategies, Munich, GRIN Verlag, https://www.grin.com/document/374775
