Lufthansa case study Example | Topics and Well Written Essays - 250 words

Lufthansa - Case Study Example The company uses internet ticket booking, instead of the traditional agents located in the company’s operational strongholds (Davies 2010, 41). Internet ticketing has been touted as one of the cost drivers in most of the service industry. It is ineffectual to use agencies in the current market trends owing to various reasons, as highlighted in market dynamics. The involvement of agencies means that there has been a good relationship between Lufthansa Airlines and their clients, a third party. For that reason, it will call for a reduction of their profits to sustain the agents in the supply chain. It is thus advisable to deal directly with customers through internet ticket booking. Security concerns such as cybercrime are synonymous with all sorts of online transactions. In the main, they are initiated by people who need to hijack people’s business trails. All the same, in the long term, this is a sustainable business model for Lufthansa Airlines (Davies, 2010, 72). Comparison of the industry wages with those of Lufthansa Airlines show a noticeable gap. This is because of the initiative to hire fewer workers in their teams. As a result, Lufthansa Airlines has managed to offer competitive remuneration to employees, at the same time saving on the resulting