The Aviation Industry: Comparative Analysis of Boeing and Airbus with the Chinese Aircraft Manufacturer Comac

In general, Boeing’s global economic expansion has been driven by the far-reach of technological developments throughout the world and the steady decline in fuel prices. In the past, emerging markets have driven economic growth, but the world economy is presently experiencing some regional divergence from such a trend. According to Boeing’ online publications, the company’s outlook has incorporated the effects of those market forces in the growth of the aviation industry. Company sources state that Boeing is currently targeting a market expansion through the production and delivery of single-aisle airplanes, which have been becoming its largest share of new deliveries. Another market expansion taking place for Boeing is in the air cargo markets as a result of the increase in international trade, and a multibillion-dollar sale contract with one of the top and largest Chinese airline company has been another part of Boeing international expansion in Asia. After-sales market, which includes the sales of spare parts as well as monitoring services, represents an equally important venue of market expansion for Boeing, and according some inside analysts, the company is joining the programs of the Commercial Airplanes departments and the Defense segment to be able to attain the margins of growth of such service programs. In addition, Boeing remains in close

It is difficult to enter into the plane manufacturing industry because of the capital needed to enter. The amount of money and expertise needed to make even one plane is around 200 million dollars. For this reason, there are

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

America holds the largest Aircraft industry in the world. The industry greatly depends on the advancement of the technology for its growth. The industry on the hand has the largest aircraft manufacturing sector around the globe.

America holds the largest Aircraft industry in the world. The industry greatly depends on the advancement of the technology for its growth. The industry on the hand has the largest aircraft manufacturing sector around the globe.

Aviation Industry plays an important role in the economic growth of anation. It not only promotes international trade but also provides an effective and fastest means of transportation across the globe. Today, in the world of globalization and cut throat competition the value of time has become more precious.

In the market for large aircraft demand the emerging niche for very large aircraft (VLCT aircraft seating more than 400 passengers) saw only two competitors: Boeing and Airbus. Even though both competitors’ moves were clearly marked by technology enhancements, and different target markets but both exhibited strategic interdependence.

Dominating the commercial aircraft market for decades, Boeing is considered to be the most highly competitive U.S aerospace industry. “U.S. firms manufacture a wide variety of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S. aerospace shipments. The U.S. aerospace industry exported nearly $78 billion in products in 2010, of which $67 billion (or 86% of total exports) were civil aircraft, engines, equipment, and parts” (Harrison, 2011). However, its position of influence has lessened in recent years. This is due to its main competitor, Airbus, who in recent years has made significant

The following analysis discusses the suppliers, buyers, industry competition, threats to entry, and substitutes that exist within the large commercial aircraft industry. Additionally, the analysis identifies the pressure that each of these groups applies on the industry and estimates the impact this pressure has on potential industry profits. Each group is identified using a high, medium, or low-pressure classification. A high-pressure classification indicates the group reduces industry profit potential and vice versa.

The aviation industry of any nation acts as a contributor to its economic growth, helps in globalisation and creating an international image. It is the best in terms of the fastest, safest and convenient mode of travel. Even though it is an expensive one, it is expanding its markets across the middle-class who are ready to spent money on leisure trips. Thus it is truly stated that aviation forms a vital core infrastructure area without which a country economy is handicapped.

The economy of China can be difficult to understand and follow; here is an overview on the Nation’s economy. In 1820 China was the largest economy in the world, today it is the second largest. China lifted more people out of poverty than any other country, to where urban areas in China, poverty is eliminated (Project Specialist, Economic Growth and Social Inclusion Initiative, World Economic Forum). China is the world’s manufacturing hub due to the fact that it specializes in labor-intensive and export led production of cheap goods. Many US companies prefer to manufacture in China because the work is fast and cheap. “China is the world’s largest exporter and the second largest importer of merchandise goods” (Project Specialist, Economic Growth and Social Inclusion Initiative, World Economic Forum). By 2030, it is expected that China will once again be the world largest economy.

China has proved itself as a more than capable producer on the world stage. They received most favored nation status and admission into the WTO based on their prowess and an economic super power. Now, China continues to build off of their productive capabilities as the economy

Aviation is currently the fastest growing industry in the world. 75% of the total industry is owned by private companies mainly in the domestic markets. The aviation industry is growing at compound annual growth rate of 15%. Airline companies lease or own their aircrafts are into alliance with other companies with mutual benefits.

Although there are a lot of strengths in the aviation industry they also have many challenges and weaknesses such as high aircraft expenses and maintenance, difficulty with aircraft changes and scheduling, global economic downturns, price of fuel and other resources rising, plague or terrorist attacks and government intervention

When you walk into a store and pick up a few manufactured items, odds are— they were produced in china. That being said, it is safe to say that china is a global leader in manufacturing and international exports. But what does this mean for china and its residents? In recent years, its population has seen that it means increased pollution as well as health risks. As China has become more globalized, it’s major cities have shot up, and pollution has gone through the roof. Resulting from the industrial revolution, China and its cities have both grown and been destroyed.