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Selected Case

published: 01 Jan 2003

  • Topic: Strategy
  • Industry: Air Transportation
  • Region: Europe

Abstract:
Case Writers: Alessandro BUCCELLA and Herman FUNG This case forms part of a series with “Note on the European Airline Industry” and “European Airline Industry: Ryanair in 2003”, but can be used independently. The case describes the strategy of Lufthansa as a major network carrier in Europe. It also describes the entry of low-cost carriers in the German market. The case describes the strategies used by other incumbent airlines in defending against the entry of “low-cost carriers”, ranging from imitation, to entry preemption and deterrence.

Pedagogical Objectives:
This case can be used to explore the following themes: How an incumbent can respond to industry entrants with distinct advantages The constraints that limit competitive responses by incumbents Whether and when entry preemption and deterrence is a viable strategy

Keywords:
Airlines, Low Cost Carriers, Competition, Network Carriers, Entry, Competitive Strategy, Entry Deterrence, Strategic Groups, European Competitiveness, Europe


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