RECOMMENDATIONS: Airbus has become a leader in commercial aircraft manufacturing relying heavily on an integrated position of low-cost leadership and technology-focused differentiation. Boeing‚ their major competitor‚ has a position in the market that has consistently eroded while maintaining an integrated position of brand value differentiation and long term cost reduction through acquisition and economies of scale. In this section‚ we will discuss two main ideas: first‚ the new challenges facing Airbus as an
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leaders in technology would sustain and even strengthen their grasp on the market. Because of this Intel was vulnerable to AMD’s increasingly aggressive tactics to match and outperform Intel. AMD Strategy: It is my opinion that AMD implemented a Differentiation Strategy against Intel to capture a larger share of the marketplace that Intel had been dominating. AMD did this by approaching the same partners Intel had cultivated and promised them a better product‚ AMD succeeded in stealing away at least
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economic‚ social and technological factors that might influence the performance of Boeing. Based on the above study‚ this report gives recommendations on the strategy that Boeing should take. It is strongly recommended that Boeing should adopt a differentiation strategy meanwhile introduce cutting-edge technology in its aircraft design and operation management in order to reduce costs and increase competitiveness. Table of Contents: 1.0 Introduction: 1 1.1 Background 1 1
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Boeing’s e-Enabled Advantage Contents Executive Summary 3 Problem Statement 3 Internal SWOT 3 External SWOT 4 Michael Porter’s 5 Competitive Forces 5 Executive Summary Boeing is a world leader in the aerospace industry. At one point they were the highest seller’s commercial aviation with no competition in sight. That all changed‚ and soon Boeing had to change. Background Boeing was founded in 1916 by William Boeing. The company started by making small seaplanes with low top speeds
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recently and maintains a high level of ranking. Among the explosive growth in budget airlines market‚ Air Asia is obviously the typical example for further study with the most fleet sizes and destinations. Air Asia was founded in 1993. There are now 57 Airbus serving 79 destinations where the passenger load factor in 2011 was 76%. Winning the Skytrax World’s best low-cost airline in the previous three year consecutively‚ it is well-known for its low-fare under the world’s lowest operating cost. With the
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Porter’s 5 forces analysis on Air Asia 1. Threat of new Entrants The extent of barriers to entry depends on the strength of: Customer has little brand loyalty. If consumers of Air asia do not have brand loyalty‚ then the strength of the threat of new entrants is very high. The high numbers of competitors in the industry also decrease Air asia’s customer loyalty. Most of the travelers prefer low cost. New competitors which want to come in the industry have to spend little to compete
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4m‚ Boeing 747-400 - $247m (http://www.flightglobal.com/articles/2008/04/22/223184/airbus-includes-surcharge-in-2008-catalogue-prices.html) iii. Additional cost to adept resources with changes: 1. Retraining pilots 2. Retrofitting aircraft‚ additional airport tax iv. Online booking system heavily relies on IT development c. Product Differentiation i. Airline industry have very little or no differentiation between companies in perspective of consumers ii. Skytraxx recognition awards companies
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1. Threat of new Entrants The extent of barriers to entry depends on the strength of- i) Customer has little brand loyalty. If consumers of Airasia do not have brand loyalty‚ then the strength of the threat of new entrants is very high. The high numbers of competitors in the industry also decrease Airasia’s customer loyalty. Most of the travelers prefer low cost. New competitors which want to come in the industry have to spend little to compete with Airasia. ii) High capital requirement. The
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The Treat of New Entrants The unparallel success of AirAsia had stimulated many LCC to enter the market in its region‚ some of which are large full-service airlines’ subsidiary companies. Knowing that the new-comers would copy its low cost strategy‚ AirAsia introduced a series of unique services. For example‚ it was the first airline in Malaysia to allow online check-in. What’s more‚ it offered more choice for those who wanted to pay more for convenience‚ such as the Xpress boarding service and
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charter companies. The airline industry typically has a large number of buyers – the Indian Airline Industry had 73.8 million passengers in 2009. Inadequate differentiation: Even with the entry of low cost carriers‚ the sector lacks adequate product differentiation – almost all airlines tend to converge on similar competencies for differentiation. From time to time‚ airlines seek new competitive advantages‚ such as greater leg room‚ in-flight entertainment‚ on-ground services etc in order to differentiate
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