Airbus Case Analysis Essays

1669 WordsAug 2, 20107 Pages
INTRODUCTION Until 1980, the American manufacturers in the aerospace industry enjoyed an exclusive control of the aerospace industry despite the entry of the European-based Airbus industry in the late 1960s. The American manufacturers dominated the industry at the time that it was difficult for the European manufacturers to compete, but just like all industries resources and capabilities are fundamental building blocks for a firm’s strategy. Some business organizations especially those in the airline industry must face situations whereby to succeed depends on both internal and external factors. Boeing enjoyed the global market leadership of the aerospace industry for several decades. As it is common for most market leaders, Boeing fell…show more content…
Boeing launched lesser models of aircraft compared with airbus. Unlike Airbus, Boeing did not use computers to design its aircraft therefore they designed it manually which consumed a lot of time. Their internal capability was a bit weak seeing that in 1995 when they were able to have more customers than Airbus failed to stick to its delivery schedule. Boeing failed to reconstruct its production process and that enabled Airbus to compete. A VRINE analysis performed on Boeing shows that its current resources and capabilities seem not to have any competitive advantage over Airbus at the moment. Airbus Strategy 80% owned by EADs and 20% by BAE. Computer aided design capabilities. A VRINE analysis performed on Airbus shows a high level of competitive advantage as it provides lower costs and also innovative aircrafts. As both companies battles for market share they gamble using different strategy, Airbus is banking on the A380 jumbo jet and airline. Its strengths include the production processes and practises. They were market share leaders because Boeing lost its market share. Boeing had outdated production facilities and no counter to Airbus’ A380 Airbus competition strategy Airbus’s reorganisation has definitely increased the company’s ability to compete with Boeing and earn its leading market share on the aerospace industry. In 2002 Airbus reported a turnover of $24.3 billion. In 1974,
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