As defined by the VRIN framework, companies that hold and leverage precious,
uncommon, unique and skills and capacities will indeed successfully establish enduring solid
positions in the market. Lufthansa's capital ability is vital since they enable the airline to spend
on outside benefits that accrue (Redpath et al., 2017). These both assist Lufthansa in defending
against security risks.
Lufthansa's findings show that its fresh produce goods are a precious asset due to their
high differentiation. As a result, buyers put a more significant premium on such. Additionally,
clients appreciate certain goods just as much as they gain a competitive edge to their
distinctiveness(Schallmo et al.,2019). As per Lufthansa's, its materials are considered scarce.
Quite a few industries have robust monetary capacity.
According to Lufthansa, locally sourced ingredients items aren't uncommon. All of those
are affordable and reliable from rivals. It implies that commodities will be quickly provided in
the market in a certain way that Lufthansa does, undermining the airline's market edge. It means
that domestic fresh produce goods provide Lufthansa with competitiveness. Lufthansa can
continue to utilize this asset due to its value.
Lufthansa's monetary support is prohibitively expensive to replicate. The group
purchased these assets over the decades via sustained profitability. To accrue such economic
means, new companies and opponents will receive appropriate revenues for a longer duration.
Lufthansa's case study found that replicating locally sourced ingredients goods is not
prohibitively expensive (Redpath et al., 2017). Rivals can also gain some if companies spend
significantly on research & innovation. Additionally, it does not necessitate decades of work
expertise. Thus, Lufthansa's goods provide such a transient comparative benefit that opponents
3
can leverage inside the long-term (Schallmo et al.,2019). Lufthansa's current assets are organized
to reap benefits as indicated. Funds are wisely allocated to spend in the appropriate locations,
capitalizing on possibilities and defending against dangers. As a result, these facilities provide
Lufthansa with a sustainable strategic advantage.
\
4
References
Redpath, N., O'Connell, J. F., & Warnock-Smith, D. (2017). The strategic impact of airline group
diversification: The cases of Emirates and Lufthansa. Journal of Air Transport Management, 64,
121-138. https://www.sciencedirect.com/science/article/pii/S0969699716303350
Schallmo, D., Williams, C. A., & Lohse, J. (2019). Digital Strategy—Integrated Approach and Generic
Options. International Journal of Innovation Management, 23(08), 1940005.
https://www.worldscientific.com/doi/abs/10.1142/S136391961940005X