This case is about ENTREPRENEURSHIP
PUBLICATION DATE: January 05, 2004
Germania Fluggesellschaft mbH (A)Â Case Solution
In this article the students performed game-theoretic analyses so as to analyze the situation of Germania Fluggesellschaft MBH at the start of its first scheduled flight service on the Frankfurt-Berlin route in the autumn of 2001. Entry into this market will bring Germania into direct competition with Deutsche Lufthansa AG, which now holds a monopoly on the course.
The tactical evaluations have been done by the students in this case from the standpoints of both rivals, to discoverthe strategic consequences of replicating exactly the same game several times (i.e., research the difference between games and supergames), to discover the tactical role of standing in repeated interactions between players, to comprehend the worth of deterrence and evaluate the risk of predatory pricing, and to create a successful business model for entry into a marketplace that is dominated by a big, monopolistic incumbent. See also the B case (UVA-QA-0621).
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