“Competitive advantage is a function of how you cope with the changing patterns of competition under globalisation to create value for your customers”
“Competitive advantage is a function of how you cope with the changing patterns of competition under globalisation to create value for your customers”
Abstract:
This paper employs different theories relating to the advantages an MNC can gain from effectively utilizing its significant economies of scale, to strategically operate its business in an ever changing environment. Today, Rolls Royce along with General Electric and Pratt & Whitney, are the “Big Three” commercial turbofan aircraft engine producers. (Lazonick-Prencipe, 2005)
Both Rolls Royce and GE give expression to the importance of utilizing competitive advantages and global research & development to sustain the innovation process of airline engine production, which has enabled both to survive extremely volatile decades in the aviation industry.
Introduction:
In a world of recession, multinational corporations must utilize their economies of scale and global reach in order to sustain and achieve a competitive advantage. As increased competition for customers and high fuel prices continue, aviation companies have had to dynamically respond to industry and macroeconomic shifts, while heeding to strict safety and maintenance guidelines.
Therefore, utilizing the most cost effective and reliable engines is of the utmost importance, and few other companies have dominated the aviation industry like Rolls Royce and General Electric.
Both firms have had to utilize their ownership, internationalisation and location specific advantages in order to stay ahead of competitors, who do not enjoy the extensive economies of scale that come with being a successful multinational organisation. Moreover, both GE and Rolls Royce have placed a strong emphasis on the innovative new product phase in order to ensure their engines are the most technologically advanced available to customers.
Finally, through choosing an effective global standardisation strategy, both firms have been able to manage their
Abstract:
This paper employs different theories relating to the advantages an MNC can gain from effectively utilizing its significant economies of scale, to strategically operate its business in an ever changing environment. Today, Rolls Royce along with General Electric and Pratt & Whitney, are the “Big Three” commercial turbofan aircraft engine producers. (Lazonick-Prencipe, 2005)
Both Rolls Royce and GE give expression to the importance of utilizing competitive advantages and global research & development to sustain the innovation process of airline engine production, which has enabled both to survive extremely volatile decades in the aviation industry.
Introduction:
In a world of recession, multinational corporations must utilize their economies of scale and global reach in order to sustain and achieve a competitive advantage. As increased competition for customers and high fuel prices continue, aviation companies have had to dynamically respond to industry and macroeconomic shifts, while heeding to strict safety and maintenance guidelines.
Therefore, utilizing the most cost effective and reliable engines is of the utmost importance, and few other companies have dominated the aviation industry like Rolls Royce and General Electric.
Both firms have had to utilize their ownership, internationalisation and location specific advantages in order to stay ahead of competitors, who do not enjoy the extensive economies of scale that come with being a successful multinational organisation. Moreover, both GE and Rolls Royce have placed a strong emphasis on the innovative new product phase in order to ensure their engines are the most technologically advanced available to customers.
Finally, through choosing an effective global standardisation strategy, both firms have been able to manage their
References: used Lazonick, W & Prencipe, A 2005, ‘Dynamic capabilities and sustained innovation: strategic control and financial commitment at Rolls-Royce plc’, Oxford Journals. The Economist Intelligence Unit 2009, ‘Rolls-Royce: Britain’s lonely high-flier’, The Economist. Joyce, D 2012, ‘GE Aviation’, Barclays Capital Industrial Select Conference. Anonymous. 2008, “GE Aviation signs $750 million engine maintenance deal”, Airfinance Journal, no. 3, pp.17 Anonymous. 2011, “Britain: A tale of two industries; manufacturing”, The Economist, vol. 400, no.8744, pp.51-52 GE Aviation. 2010, GE to Provide New LM2500 Gas Turbine Modules for United States Navy 's DDG 51 Program, media release, 31 August, viewed 1 May 2013 http://www.geaviation.com/press/marine/marine_20100831.html GE Aviation, 2012, GE Aviation Corporate Strategy, media release, 20 September, viewed 1 May 2013 http://www.fincore.rs/post/31925243683/ge-aviation-corporate-strategy Rudd, 2010, Large Civil Aircraft Engines, viewed 1 May 2013