Case Study Essay Example | Topics and Well Written Essays - 750 words - 28

Case Study - Essay Example Lufthansa is one of the five founding members of the largest Airline alliance known as â€Å"Star Alliance†, which was established in the year 19971. Contextually, discussions will also be made regarding the influence of Lufthansa’s performance due to the cooperation with Star Alliance. Lufthansa has adopted various strategies in order to expand the market internationally among which the creation of strategic alliance with the Star Alliance is considered the most effective one. It is the largest airlines alliance having 28 members. The Star alliance was founded in the year 1997 by five different airlines company including the Scandinavian Airlines, Thai airways, Air Canada, United Airlines and Lufthansa. As a result of the alliance, Lufthansa has been able to reduce the resources as well as the cost through the sharing of other airlines partner. This resource sharing strategy has led the company to maximize the profits and operate more efficiently. Moreover, the alliance has also provided opportunity for the company to expand its international territory and gain access to the new markets. Generally, expanding a market requires a vast investment of capital, but because of the strategic alliance, Lufthansa do not have to incur large investments to enter any new marke ts or face any risk. However, the company is also trying to expand the international market by acquiring renowned small carriers of different countries and establishing alliances with reputed airline companies of the world. Moreover, entering the American market was possible by Lufthansa due to the collaboration of Continental Airlines with the Star alliance. Moreover, in order to expand the international market, the company also established alliances with the airline industries of China and India2. The cooperative strategies being adopted by Lufthansa helps the company to make