Airbus: Executive Summary
Executive Summary The aerospace industry is one of the most capital intense industries in the world. US manufacturing had enjoyed a distinct technological and financial advantage over its European competitors from the period after the Second World War (Carpenter, 2009). In 2002 however, to the surprise of many Airbus an aircraft manufacturing subsidiary of the European Aeronautic Defense and Space Company N.V. was able not on to gain global market share but take the lead. Their ability to forecast the markets need along with their innovative approach helped them accomplish the gain in global market share. After the initial shock wore off many experts questioned if Airbus could sustain their market share and continue to compete against Boeing. In this case analysis it became apparent that Airbus had indeed done many things correctly in their business strategy. However, using analytical tools which included the PESTEL Analysis, Stakeholder Analysis, SWOT Analysis, Porter’s Five Forces, Porter’s model of competitive advantage and a VRINE Analysis I was able to identify some problems and critical issues Airbus faces with regard to their sustainability along with their causes. In this analysis my goal was to identify Airbus’ current strategy and highlight its strengths and weaknesses along with recommending my own strategy to assist Airbus in attaining future growth.
History of Airbus Airbus is one of the world’s leading manufacturers of commercial jetliners and military airlifters. In 2009 Airbus celebrated its 40th anniversary of its first aircraft launch (Airbus, 2011). Airbus was born as a consortium between firms as a desperate attempt by the European government to end the American manufacturers’ monopoly in the aerospace industry (Carpenter, 2009). Initially the countries included in the consortium were France and Germany with Spain and Britain joining the consortium further down the line. Each country represented in the consortium was
History of Airbus Airbus is one of the world’s leading manufacturers of commercial jetliners and military airlifters. In 2009 Airbus celebrated its 40th anniversary of its first aircraft launch (Airbus, 2011). Airbus was born as a consortium between firms as a desperate attempt by the European government to end the American manufacturers’ monopoly in the aerospace industry (Carpenter, 2009). Initially the countries included in the consortium were France and Germany with Spain and Britain joining the consortium further down the line. Each country represented in the consortium was
References: Carpenter M.A. & Sanders (2009)W.G. Strategic Management A Dynamic Perspective, Pearson Prentice Hall Upper Saddle River, New Jersey 07458 http://online.wsj.com/article/BT-CO-20110307-703867.html#printMode • Manages workforce well- has fewer HR issue due to its heavier use of contracted workers (Carpenter, 2009) Weaknesses • May potentially benefit from growing number of government subsidies. • Air traffic is expected to double in the next 15 years (Airbus, 2011)