Competition Between Airbus and Boeing

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Faculty of Commerce Executive MBA Program Strategic Management Boeing bets the company Course Instructor: Dr. Manal ElKordy Prepared By: Marwan Fathy Submitted on: 12/01/13 1. Outsource approximately 70% of manufacturing. Could it find suppliers who could consistently make the high quality parts needed by Boeing? Actually to outsource 70% of the manufacturing process is a very huge % and will result in facing many problems because of less control over the process attached to this high% of outsourcing. This will also considered as a high risk (Threat)the company will have to bear in terms of quality and lead time, because the more the outsource the company base its strategy the less the control the company will practice over its…show more content…
Resolve poor relations with labor unions caused by downsizing and outsourcing. The mechanists ' union would have to given a greater voice in specifying manufacturing procedures. Would Boeing 's middle managers be willing to share power with an antagonistic union? This poor relation will definitely be a weakness point that Boeing needs to tolerate in order to reduce bad effects; this also will reduce the capabilities of Boeing to build the planned distinctive competency that might give Boeing a completive advantage over its competitors. So thinking of resolve this issue will give Boeing an inside strength 5. Which vision of the future was correct? The long term of both Boeing and EADS depended on two contrasting strategies decisions, based on two very different assessments of the market. If EADS was correct, the market would continue to demand everlarger airplanes. If Boeing was correct, the current wave of Jumbo jets would soon replace them. Which company 's strategy had the best chance of succeeding? It is really hard to judge the vision of the future of both companies with the available data on the case, but through searching over the internet and in terms of market share and profitability will find the

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