Airbus Case Analysis
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 victim of organizational inertia. The company failed to improve its production processes and come up with new and creative products. Although Airbus faced challenges at its entry, within two decades it became a major competitor of Boeing. As a new company, Airbus never rested but continually introduced different innovations in its planes. It seems that in the head to head competition, Airbus presently has the upper hand over Boeing.
SITUATION ANALYSIS
I performed a macro analysis, using tools like VRINE, PESTEL and Porters five forces to analyse the external environment. I performed an analysis of the industry environment and the firm including its financial situation.
The Industry
The commercial aircraft industry is dominated by two heavyweights, Boeing and Airbus. The aerospace industry is one of the most capital-intensive industry in the world. It faces both internal and external factors such as rivalry. One important characteristics of this industry is the high entry barrier of heavy capital investment required and a lot of government involvement.
In the late 1990s and early 2000s, the September 11 attack affected the aerospace industry as they were hurting from a worldwide economic recession.
Macro Environmental Forces
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 victim of organizational inertia. The company failed to improve its production processes and come up with new and creative products. Although Airbus faced challenges at its entry, within two decades it became a major competitor of Boeing. As a new company, Airbus never rested but continually introduced different innovations in its planes. It seems that in the head to head competition, Airbus presently has the upper hand over Boeing.
SITUATION ANALYSIS
I performed a macro analysis, using tools like VRINE, PESTEL and Porters five forces to analyse the external environment. I performed an analysis of the industry environment and the firm including its financial situation.
The Industry
The commercial aircraft industry is dominated by two heavyweights, Boeing and Airbus. The aerospace industry is one of the most capital-intensive industry in the world. It faces both internal and external factors such as rivalry. One important characteristics of this industry is the high entry barrier of heavy capital investment required and a lot of government involvement.
In the late 1990s and early 2000s, the September 11 attack affected the aerospace industry as they were hurting from a worldwide economic recession.
Macro Environmental Forces