Capturing and Delivering Competitive Advantage in the Japan to Europe and Europe to Japan Air Cargo Markets: The Case of the ANA Cargo and Lufthansa Cargo A.G. Strategic Joint Venture

Glenn Baxter

doi:10.14311/mad.2019.02.01

Abstract

<p class="keywords">This paper presents a case study of the ANA Cargo and Lufthansa Cargo strategic joint venture, the global air cargo industry’s first strategic joint venture between two of the world’s major air cargo-carrying airlines. The data gathered for the study was examined by document analysis. The strategic analysis of the joint venture was underpinned by the use of Porter’s Five Forces Model. The study found that the joint venture has provided synergistic benefits to both partners and has allowed the partners to access new markets and to participate in the evolution of the air cargo industry. The joint venture has also enabled both joint venture partners to enhance their competitive position in the Europe to Japan and Japan to Europe air cargo markets through strengthened service offerings and has provided the partners with increased cargo capacities, a larger route network, and greater frequencies within their own route networks. A limitation of the study was that ANA Cargo and Lufthansa Cargo revenues, or freight traffic data was not available. It was, therefore, not possible to analyse the business performance of the joint venture.</p>

Highlights

The requirement to serve firms with truly global supply chain requirements and distributive infrastructure has helped stimulate the formation of strategic joint ventures within the global air cargo industry [1, 2, 3]
4.1.1 An overview of ANA Cargo All Nippon Airways was formed in March 1958 through the merger of the Japan Helicopter & Airplane Transport Co Limited (JHATC), formed in late 1952, and Far East Airlines
JHATC changed its name to All Nippon Airways in December 1957, and in March 1958 merged with Kyokuto Airlines, a domestic airline that was formed in March 1953

Summary

Introduction

The requirement to serve firms with truly global supply chain requirements and distributive infrastructure has helped stimulate the formation of strategic joint ventures within the global air cargo industry [1, 2, 3] This trend has become more common in recent times due to the growing adoption of logistics and supply chain management by businesses that are located all around the world. Air cargo-carrying airlines have started to cooperate through common product/service options, sales and compatible information systems, and through the development of global route networks Such strategic arrangements are partly intended to combat the challenges posed by regulation in the industry and to compete against the rapid growth of the integrated carriers, such as DHL Express, FedEx and United Parcel Service (UPS), who have captured large market shares in recent times [5]. As mentioned by Baxter and Srisaeng [11], the expectations of the results of the joint venture should be reasonable

Objectives

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Conclusion