Documents

Boeing and Airbus- Case

Description
Boeing and Airbus : A Global Competitive Battle over Supremacy in Producing Commercial Aircraft Boeing has historically been a global leader in manufacturing commercial airplanes . However , in 2001 , Airbus had more orders than Boeing for the first time in their competitive history . But , in 2006 , Boeing regained its supremacy with 1,044 versus 790 orders for commercial aircraft . The main turnaround in this battle for competitor orders has been most visible in the super jumbo category with A
Categories
Published
of 2
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Transcript
  Boeing  and Airbus  : A Global  Competitive Battle overSupremacy   in Producing Commercial Aircraft Boeing  has historically  been a global  leader  in manufacturing commercialairplanes . However , in 2001 , Airbus had more orders than Boeing for the firsttime in their competitive history  .  But  , in 2006 ,  Boeing regained  its supremacywith 1,044 versus 790 orders for commercial aircraft   . The main turnaround in thisbattle for competitor orders   has been most visible  in the super jumbo categorywith Airbus’s A – 380  versus Boeing’s 787 .Apparently  in 1992 , Boeing and Airbus’s parent  EADS  agreed to a joint study  onprospects   for a super  jumbo aircraft . The impetus  for the study was the growingtraffic in China and India . However , Airbus and Boeing reached differentconclusions concerning the market trends , and the joint effort was  disbanded .Boeing’s 787  Dreamliner   design focused  on long – range efficient flight  , capableof transporting 250 passengers , where as Airbus’s strategy  focused on long - haulflights with the A-380 offering 550-Plus seats . In their diverging strategies ,  Airbusfocused on flying to larger  airports  that use the hub – and – spoke system , whereasBoeing concentrated  more on a point to point system in which smaller airports aremore abundant .  In reality , the Airbus A – 380 aircraft , on the other hand , canland at many more airports  around the world and the number is growing inemerging economies , such as throughout Eastern Europe  where smaller airportsdesire international connections .Airbus won the competitor battle that occurred between 201 and 2005 because itfocused on the midsized market as well , using the A-320 strategy , which competeswith Boeing’s  737 and 757  aircraft .  The A – 320 was more efficient  than theaircraft  used by Boeing , and Boeing did not respond to customer demands tocreate new , efficient aircraft . In fact , it had slowed  its innovation process inregard to  new models .  Besides the lack of new models  , the commercial aircraftbusiness was sluggish  : new orders significantly ebbed due to the complications of the terrorist attacks and the subsequent recession . It was a bleak time for Boeingrelative to Airbus  .More recently  , Boeing’s strategy in regard to  overall design with 787 Dreamlineris winning the day , as far as the battle goes . It has realized success by implementinga different strategy  in regard  to the production process . It has been able to  speedup the process   by creating an efficient global  supply chain that involves  manypotential  customers  around the world . , including Japan , China , and others .Moreover , Airbus is behind in its schedule to produce the A 380 and its midsizedplane , the A – 350 , has also had redesign issues . The midsized  plane , the A -350 ,has also had redesign issues . The midsized  A – 350 , has also had redesign  issues .  The midsized   A-350  , compared to  the Boeing 787 is behind schedule  and  Airbushas had to provide  significant incentive discounts  to increase future orders .Also  , Airbus  has been forced  to produce of its plane parts in European countriesbecause governments have significant  ownership  and provide   subsidies toAirbus  . Accordingly , these governments – Spain , France , Germany , and theUnited Kingdom – want to maintain  employment levels in these countries   , andthus Airbus must continue to produce primarily in European countries . “ Boeingoutsources 85 percent of the work for its 787  ‘ Dreamliner ‘  aircraft . Thecorresponding figure for Airbus’s  A 380 is 15 per cent . “ As a result of the designand development delays , Airbus’s development costs for the  A-380  have risen  to$14 billion versus the $8 billion invested by Boeing for the 787 .In making its decision to move ahead with the 787  Dreamliner  versus a morejumbo aircraft  comparable to the A-380 . Boeing made a more concerted effort  inconnecting and getting input from its airline customers , as well as the ultimatecustomers , the passengers . Overwhelmingly the passengers in particular , andthereby the airlines , preferred smaller aircraft  which would enable them to getsmaller airports quickly , without as many transfers  on a point – to – point system .Additionally , Boeing followed up with the ultimate creditors , the leasing agents ,asked what they would prefer as far as risks were concerned . Again , the leasingagents preferred a smaller aircraft which would reduce their risks in financingversus the large super jumbo A-380 . These business level strategies have created  anobvious advantage  in the near-term for Boeing .Interestingly , Boeing only receives 50 per cent of its revenue from the commercialaircraft  division as a result of its diversification strategy . the other 50 per cent of itsrevenue comes from military  contracts , as well as  business from space satellitelaunching . Some crossover  takes place in the technology used between militaryaircraft and commercial aircraft , which indirectly contributes to lower commercialaircraft development costs . This argument is used  by Airbus when Boeingconfronts it regarding the subsidies   from local European governments . theultimate battle  will continue between these firms , but currently Boeing has thewinning edge and it looks like that will continue . Boeing’s orders are now soplentiful , it will not be able to deliver all that are ordered in 2007  until the 2012 – 2013 range . 1. During  which period , Boeing was second to  Airbus ? How it happened ?2. Which of the emerging markets were studied by  leading manufacturers of aircrafts ? What  are their major strategies  to capture those markets ?

Section 6

Nov 22, 2017
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks
SAVE OUR EARTH

We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

More details...

Sign Now!

We are very appreciated for your Prompt Action!

x