Airbus vs Boeing 4
Management 4p90 | The Rise of Airbus, 1970-2005 | Professor: AUSTIN, B |
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Table of Contents
1.0 Introduction – Airbus’s history, development, and growth 3
2.0 Internal strengths and weaknesses 4
3.0 External environment 6
4.0 SWOT Analysis 9
5.0 Corporate-level strategy 10
6.0 Business-level strategy 12
7.0 Structure and control systems 15
8.0 Strategy Recommendations 18
1.0 Introduction
Airbus is one of the world 's leading aircraft manufacturers, and it consistently captures approximately half or more of all orders for airliners with more than 100 seats. Airbus was formed in 1970 by a consortium of France’s Aerospatiale, Germany’s Deutsch Airbus and Spain’s CASA. The main business is to design and manufacture civil transports. The companies first decided to build their first twin-engine wide body airliner - the A300. However, at that time, Boeing, which becomes its biggest competitor in following decades, enjoyed most market dominance with various airplane products. Therefore, in the infancy, A300 was not a particular success for Airbus. It was not until 1981 and the introduction of the A320 made Airbus become a major manufacturer in the civil aviation industry. This model was a great success because it adopted a computerized system of flight controls - fly-by-wire technology.
Basing its technological leadership, Airbus used the family concept to satisfy different airline customers’ needs. For expanding marketing and sales, Airbus’s early strategy is aiming the small airline in Asia and the Middle East. The increasing sales made Airbus gain worldwide recognition. In 1978, it successfully broke into American market. After that, Airbus focused on developing new model, increasing sales and cutting costs. Since then, the sharp rival between Airbus and Boeing never stop. In the recent years Airbus has regularly delivered more aircraft’s than its rival and consistently booked at least half of
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Table of Contents
1.0 Introduction – Airbus’s history, development, and growth 3
2.0 Internal strengths and weaknesses 4
3.0 External environment 6
4.0 SWOT Analysis 9
5.0 Corporate-level strategy 10
6.0 Business-level strategy 12
7.0 Structure and control systems 15
8.0 Strategy Recommendations 18
1.0 Introduction
Airbus is one of the world 's leading aircraft manufacturers, and it consistently captures approximately half or more of all orders for airliners with more than 100 seats. Airbus was formed in 1970 by a consortium of France’s Aerospatiale, Germany’s Deutsch Airbus and Spain’s CASA. The main business is to design and manufacture civil transports. The companies first decided to build their first twin-engine wide body airliner - the A300. However, at that time, Boeing, which becomes its biggest competitor in following decades, enjoyed most market dominance with various airplane products. Therefore, in the infancy, A300 was not a particular success for Airbus. It was not until 1981 and the introduction of the A320 made Airbus become a major manufacturer in the civil aviation industry. This model was a great success because it adopted a computerized system of flight controls - fly-by-wire technology.
Basing its technological leadership, Airbus used the family concept to satisfy different airline customers’ needs. For expanding marketing and sales, Airbus’s early strategy is aiming the small airline in Asia and the Middle East. The increasing sales made Airbus gain worldwide recognition. In 1978, it successfully broke into American market. After that, Airbus focused on developing new model, increasing sales and cutting costs. Since then, the sharp rival between Airbus and Boeing never stop. In the recent years Airbus has regularly delivered more aircraft’s than its rival and consistently booked at least half of
References: Airbus S.A.S. (2010). Aircraft Families retrieved 06/18/10 from www.airbus.com. Airbus S.A.S. (2010). Aircraft Families; A830 Family: A new way of flying retrieved 06/18/10 from www.airbus.com. Airbus S.A.S. (2010). Corporate Information/Ethics & Commitment; Quality retrieved 06/18/10 from www.airbus.com. Airbus S.A.S. (2010). Corporation Information/Ethics & Commitment; Safety first, retrieved 06/18/10 from www.airbus.com. Airbus S.A.S. (2010). Corporation Information/Innovation & Technology retrieved 06/10/10 from www.airbus.com. Airbus S.A.S. (2010). Corporation Information/People & Organizations; Company Structure retrieved 06/10/10 from www.airbus.com. Airbus S.A.S. (2010). Environment/Ethics & Commitment; Environment retrieved 06/10/10 from www.airbus.com. Airbus S.A.S. (2010). Press Centre/Press Releases; Changes in Airbus management retrieved 06/10/10 from www.airbus.com. Airbus S.A.S. (2010). Annual Review 2010 retrieved on 06/12/10 from www.airbus.com. Cohen, I. (2005). The rise of Airbus, 1970-2005. Working Case. San Jose State University. Hill, W.L