Corporate Analysis "Nebelhornbahn AG CS"

Seminar Paper, 2004

26 Pages, Grade: 1



2. Major macro-environmental influences
2.1 Economic Influences
2.2 Political Influences
2.3 Sociocultural Influences
2.4 Ecology and natural changes
2.5 Technological Influences

3. Sources of Competition
3.1 Threat of New Entrants
3.2 The Power of Suppliers
3.3. Threat of substitutes
3.4 The Power of Buyers
3.5 Competitive Rivalry

4. SWOT Analysis
4.1 The Strengths
4.2 The Weaknesses
4.3 The Opportunities
4.4 The Threats

5. Recommendations



The Company

The Nebelhornbahn AG is a small domestic Public Limited Company. In cooperation with its business partner Fellhornbahn GmbH it serves the largest linked skiing area of Germany.

It is situated in the Bavarian Alps and operates a cable car from the village Oberstdorf up to the peak of Nebelhorn mountain, 2224 meters above sea level. Besides it runs several towropes and chairlifts as well as restaurants and kiosks mainly catering for tourists. However, carryings represent the main part (85%) of its business and thereof winter sports have a share of 43%.

When it was founded in 1927 it was the longest passenger carrying cableway in the world. Nowadays, it has an overall length of 5770 m. In three sections it climbs over a distance of 1385 m and has a carrying capacity of 560 persons per hour. With a permanent staff of 67 employees and an annual turnover of 5.9 million Euros it is one of the main cable car operators in the Oberallgaeu area. Overall there are 21 cable car companies and 4 in the village of Oberstdorf.

The market of Nebelhornbahn AG is strongly connected with tourism in the Oberallgaeu region. The company’s customers are mainly tourists from Germany and Austria and about 16% of them come from foreign, mostly European, countries. Oberstdorf is a popular holiday resort with a long tradition and hence a lot of older regular customers. In addition there are plenty of daily visitors from the nearby cities and domestic costumers as well. The picturesque landscape and mountain scenery around Oberstdorf offers many leisure activities to athletes, families, health visitors, culture enthusiasts or those who simply seek relaxation.

2. Major macro-environmental influences

2.1 Economic Influences

The Nebelhornbahn AG belongs to in the tourism industry. By analysing the economic environment of the company the authors will give an overview of the economic conditions and economic trends for the next few years with a focus on the key figures which affect the tourism industry most.

Since the bulk of the customers come from countries within the European Monetary Union, the exchange rate for the euro is a negligible factor. Tourism reacts very sensible to changes in the economic environment as people with less money do not spend much money on non-vital goods in uncertain times to spend.

Kaspar in Haedrich/Kaspar/Klemm/Kreilkamp (Hrsg.) 1998, p. 22

[illustration not visible in this excerpt] The economy in Europe is slowly increasing. There has been a slight rise in GDP and private consumption over the last two years (Figure 1) and the experts from the German Institute for Economic Research are forecasting a growth of 1,6% in 2004 and 2% in 2005 which mainly resulting from the global economic upturn.

DIW Konjunkturbericht

Figure 1

[illustration not visible in this excerpt] The German economy is recovering but at a slower rate. German economic growth fell constantly from 2.9% in 2000 to -0.1% in

2003. For 2004 and 2005 economic growth Figure 2

of 1,5% is predicted (Figure 3). The disposable income has been stagnating over the last two years but is expected to rise due to some significant changes in taxation. As you can see in Figure 4, the overnight stays in Bavaria are strongly linked to the disposable income (correlation of 0,91) and is therefore a good indicator to forecast the branches development which is then expected to rise.

[illustration not visible in this excerpt] The number of unemployed German people depends on the economic situation, but it also has a strong influence on the consumer and travel behaviour of the people. This number will stay almost the same (11,4%) over the next two years.

The success of the Nebelhornbahn AG is directly linked to the success of the village Oberstdorf where it is situated and vice versa, as Oberstdorf is known as a famous skiing area. So figures about guest arrival and guest overnight stays are directly linked to the number of customers or at least potential customers. As you can see in figure 5, the number of guest arrival in Oberstdorf over the last years has increased, the number of overnight stays has fallen. This shows a trend to more travelling but with less overnight stays, on which the companies, as well as the village of Oberstdorf has to deal with in the next few years.

illustration not visible in this excerpt

2.2 Political Influences

Environmental protection laws

The building and enterprise of aerial ropeways in Germany is strongly restricted by environmental protection laws and statutory instruments, the same applies to snowmaking systems.

Several federal state laws are relevant to the comprehensive licensing procedure for both establishment and substantial changes or modernisation measures of an aerial ropeway.

Already in the concession procedure it is examined in detail whether the building design submitted is technically executable, and things like avalanche security or geological conditions for the establishment of an aerial ropeway. In the building permit and operating grant procedure other regulations and obligations concerning above ground construction, fire protection, nature protection etc. have to be duly fulfilled.

Since March 26, 1992 the Bavarian water law (BayWG) Art. 59a has come into force, the operation of snowmaking machines needs to be permitted. This law was adjusted to the guideline 2000/9/EG of the European parliament on December 27, 1999.

Ever since an additional appraisal in accordance with the Environmental Impacts Assessment Act is necessary for both setting up aerial ropeways and snowmaking machinery.

Ecological Tax Reform

On April 1, 1999 the German Government introduced the "Eco Tax" (Ökosteuer) as part of an Ecological and Economical Tax Reform. With the introduction and continuation of the ecological tax reform, Germany is following the recommendations from the European Commission and the Organisation for Economic Cooperation and Development.

It aims for a tax shift by raising the price of energy and reducing the tax burden on labour factor. Therefore Eco Taxes are levied on final fossil fuel and electricity consumption. The mineral oil tax and the electricity tax were increased gradually in five steps between 1999 and 2003.

The additional revenue from these taxes will be recycled back into the economy, mainly by reducing contributions to the social pension system in order to reduce non-wage costs of labor.

illustration not visible in this excerpt

Figure 6

The impact on businesses with high energy consumtion due to their plant and equipment like Nebelhorn AG is considerable. They are burdened with higher costs and as a consequence, they have to seek for alternative energy resources and technological developments. Particularly in open economies in which enterprises also face international competition.

Employment law

Although pension insurance rates were reduced by 0.8 percent (from 1999 to 2003) the cost of labour in Germany is relatively expensive. This has a negative impact on

Germany's competitiveness and contributes to the relatively high unemployment rate of 11.4% in September 2004.

According to a press release by Federal Statistical Office Germany of October 28, 2004 the index of negotiated monthly salaries of the employees rose within the last yearly period in Germany to 1,8%.

In April 2003, the regulations for part time occupations were changed from an overall taxation to a compulsory insurance. Due to this fact part time jobs became less attractive for employees and enterprises face the problem that flexible organization of work input is now more difficult. However, companies especially those with seasonal variations are dependent on quick and flexible availability of employees.


Excerpt out of 26 pages


Corporate Analysis "Nebelhornbahn AG CS"
University of Applied Sciences Kempten  (University of Ulster)
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Corporate, Analysis, Nebelhornbahn
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Ulrike Messbacher (Author)Markus Assner (Author), 2004, Corporate Analysis "Nebelhornbahn AG CS", Munich, GRIN Verlag,


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