Effect of corona virus in the German Aerospace Industry – SWOT (WEAKNESSES A

The German Aerospace Industry has enjoyed strong growth over the last two decades; for example,
the industry’s turnover quadrupled between 1995 and 2006. The industry has benefitted from
growing global demand, particularly in the civil aviation sector, as well as from a well-developed
manufacturing base, a dense structure of networks and clusters, heavy investment in R&D, and
multiple and growing channels of public support on the federal and regional level. In addition, the
industry benefits from various programs of co-operation and support on the European level.
Despite this relatively favorable base, as of now there appear to be two main risks and threats to
the further development of the industry.
The first is increasing competitive pressure. New emerging players, in particular, China, are seeking to establish themselves; the United States continues to harbor the world’s largest aerospace industry which benefits from a large internal market as well as from spillovers between the civil and military aviation sectors. Meanwhile, important parts of the German Aerospace Industry are dominated by small or medium-sized enterprises that thrive in technological niches but may be below critical size for success in global competition.
The second, and more fundamental, is the current economic crisis caused by the Corona pandemic and its possible repercussions for the industry. The current restrictions have virtually immobilized large parts of the population in industrial and emerging countries and led to a sharp drop in demand for travel and transportation services. There is fundamental uncertainty whether the crisis will lead to a longer-term shake-up of the industry or rather take a “V-shape”, implying an unbroken longer-run growth trend.

Against this background, develop a SWOT analysis of the German Aerospace Industry by the steps
stated below. In doing this analysis, distinguish between at least two different scenarios with respect
to the further course of the Corona crisis and its impact on the industry.

Your grade will be composed of four components. Please note that each of these components
must receive a positive grade in order to pass the course. Each team will be graded on a collective
• Interim draft paper; around 10 pages; 20% of your grade. Deadline: 20 May 2020.
• Presentation of interim draft paper, taking into account feedback and further discussion
in May; Power Point Presentation in online format, 15 minutes per group; 15% of your
grade. Time: 26 May, 15:00-16:30.
• Final paper; around 20 pages; 45% of your grade. Deadline: October
• Presentation of final paper; format tbd; 30 minutes per group, 20% of your grade. Time:

LINKS: https://www.spiegel.de/international/business/lufthansa-ceo-on-how-coronavirus-has-radically-upended-the-aviation-industry-a-d2e08d00-9981-4063-9086-88cfd99187e0


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