Marketing Audit Sample
Marketing Audit Sample
Marketing Audit: BAE Systems Regional Aircraft Division
Overview of BAE Systems Regional Aircraft and Market
“BAE SYSTEMS has a proud heritage that dates back to the early days of manned flight and wireless communications.” (BAE Systems, 2011)
BAE Systems Regional Aircraft was a major manufacturer of aircraft such as the Avro family of regional jets including the 146 and the Jetstream 31 and 41 as well as turbo prop aircraft.
These aircraft achieved much success especially in Europe and the US market as the regional airline passenger market took off in the late 1980s and throughout the 1990s. However, despite the favourable factors at play such as new regulations which liberalised the market through open skies policies, no one could have predicted the 9/11 terrorist attacks on the
World Trade Center in New York in 2001 which impacted enormously on the airline market and severely affected all players. Subsequently, regional passenger transport declined at an astounding rate. In addition to these catastrophic events, strategies being pursued by other players, particularly Boeing and Airbus, before and immediately following 9/11, had also changed the competitive environment and had made it increasingly difficult for the smaller players such as Regional Aircraft, Fokker and Bombardier to compete effectively against the bigger players in the market. The demographics of the passenger market had also changed considerably and increases in travel at a more global level ultimately implied that the regional market for aircraft was under threat as airline operators now required larger and more costeffective aircraft to remain competitive and cope with global demand. Consequently, due to the variety of largely negative factors impacting on BAE Regional Aircraft, it took the decision to cease production towards the end of 2001.
Its new strategy was based on
providing an engineering support business from its UK base in strategic
Marketing Audit: BAE Systems Regional Aircraft Division
Overview of BAE Systems Regional Aircraft and Market
“BAE SYSTEMS has a proud heritage that dates back to the early days of manned flight and wireless communications.” (BAE Systems, 2011)
BAE Systems Regional Aircraft was a major manufacturer of aircraft such as the Avro family of regional jets including the 146 and the Jetstream 31 and 41 as well as turbo prop aircraft.
These aircraft achieved much success especially in Europe and the US market as the regional airline passenger market took off in the late 1980s and throughout the 1990s. However, despite the favourable factors at play such as new regulations which liberalised the market through open skies policies, no one could have predicted the 9/11 terrorist attacks on the
World Trade Center in New York in 2001 which impacted enormously on the airline market and severely affected all players. Subsequently, regional passenger transport declined at an astounding rate. In addition to these catastrophic events, strategies being pursued by other players, particularly Boeing and Airbus, before and immediately following 9/11, had also changed the competitive environment and had made it increasingly difficult for the smaller players such as Regional Aircraft, Fokker and Bombardier to compete effectively against the bigger players in the market. The demographics of the passenger market had also changed considerably and increases in travel at a more global level ultimately implied that the regional market for aircraft was under threat as airline operators now required larger and more costeffective aircraft to remain competitive and cope with global demand. Consequently, due to the variety of largely negative factors impacting on BAE Regional Aircraft, it took the decision to cease production towards the end of 2001.
Its new strategy was based on
providing an engineering support business from its UK base in strategic
Bibliography: Anselmo, J., 2009, “Commentary, Aviation Week & Space Technology”, v171 (1) [online] 17th Sept. Ascend, 2009, "Towards 2010: The Opportunities Ahead", Ascend Worldwide. Bingham, C.B. and Eisenhardt, K.M., 2007, "Position, Leverage and Opportunity: A Typology of Strategic Logics Linking Resources With Competitive Advantage", Journal of Cavusgil, S., Ghauri, N., Agarwal,R., 2002, “Doing Business in Emerging Markets-Entry and Negotiation Strategies”, Sage Publications. Cento, A., 2008, “The Airline Industry: Challenges in the 21st Century”, Physica-Verlag HD Department of Commerce, USA, “The US Jet Transport Industry: Competition, Regulation, Dunn, G., 2010, “ 2009 World Airline Rankings: Lessons learned, Airline Business” 22nd July. Gillen, D., 2009, “International Air Passenger Transport in the Future”, International Transport Forum, Organisation for Economic Co-operation and Development, Discussion Paper No. 2009-15. Grant, R.M., 2005, "Contemporary Strategy Analysis", Wiley-Blackwell Harrington, D.G., Lawton, T.C., and Rajwani, T., 2005, "Exploring and Exploiting Industry Hill, C., 2007, "International Business: Competing in the Global Marketplace", McGrawHill/irwin. http://www.airbus.com/company/market/gmf2010/# www.newessays.co.uk Mintzberg, H., 1994, "The Rise and Fall of Strategic Planning: Reconceiving the Roles for Planning, Plans, Planners", Free Press, New York OECD, 2010, "Globalisation, Transport and the Environment", OECD Publishing. Porter, M., 1979, "How Competitive Forces Shape Strategy", Harvard Business Review, March/April. Taylor, S. And Tillmanns, C., 2002, "Airbus vs. Boeing", available at http://www.mcafee.cc/Classes/BEM106/Papers/UTexas/351/Boeing.pdf Teal Group, 2009, "Teal Predicts 2,909 Regional Aircraft worth $65.9 Billion to be Built in 2009-2018", available at