Competition through airlines have been strictly increasing. A lot of offers approaching the customers, where they can get satisfaction in just paying low price tickets. Lufthansa, as one of the airlines, was forced to “remove” their first class offer due to weak demand on most routes.

Lufthansa prefers to focused on earning revenues from premium cabins instead of maintaining high-priced first class seat, which will eventually save up until $68 million. This strategy of seeking low cost success has been a right decision. Lufthansa seeks low cost success (Video) Why? Instead of helping the firm to reduce costs, it helps to boost up the selling tickets and to accelerate the break-even point of selling business or premium tickets – after experiencing loss towards the first class offers. Looking up towards the production costs, which reaching millions US dollar, it might takes times and in a need of selling high volume of tickets to increase the sales revenue.

With the incoming profit after its break-even point , Lufthansa promised to upgrade its airplane as a whole, providing major fleet upgrade and satisfy customers even more in the future.

Source: http://www.businessweek.com/articles/2013-10-04/lufthansa-finds-first-class-seats-dont-always-pay#r=nav-r-story

Who does not know Twitter? It is a well known social media, which particularly ‘competing’ in a same field with Facebook and LinkedIn. It allows people to tweet – which basically telling their followers what they are doing or reveal their feeling, promote, and any other necessary activities that other social medias do.

On Thursday October 3rd, Twitter unveiled its financial statement, filed up IPO documents of going public. This ‘surprising’ decision was made due to seeking of $1b revenue and increase its market value.  However, in the mean time, the biggest competitor among every single online social media is Facebook. Twitter is just being – can be said – the available ‘substitution’ if people sometimes looking for another ‘fun’.

In this case, instead of financial problem as the barrier of entry to the ‘most-wanted-people’s-social-media’, Facebook as the rivalry becomes the subject that Twitter needs to focus on. With the same purposes, Twitter needs to develop its point of different to increase its value and attract more users, although twitter has managed to have larger number of celebrities users rather than Facebook, which can be said as one of the points of difference that Twitter currently have.

Source: http://www.aljazeera.com/news/americas/2013/10/twitter-unveils-highly-anticipated-ipo-filing-201310321328267397.html