Airbus Corporate Strategy
Business Level Corporate Level Strategies
Business-Level Corporate-Level Strategies
Airbus
Business-Level Corporate-Level Strategies
Airbus
Airbus is a company that manufactures aircrafts. Airbus follows the corporate strategy of its holding company EADS that is European aerospace company. Airbus is based in France and has extended operations in Europe. Airbus produces about 50% of the world's jet airliners. With around 63,000 employee force, the company has designed more than dozen aircrafts. The company had 4,682 aircrafts in December 2012 with a value of above $638 billion. The revenues and operations are ever increasing since its inception. The company supplies aircraft to almost all the countries and has started diversifying its operations. The company has been challenged by Boeing in the aircraft industry but adopts unique strategies that help it maintain a leading status in the industry.
Strategies of Airbus
Corporate strategy is about strategic scope of the company as a whole not merely its units and departments. There are often different lines of business or different categories of product or service that are managed combine. The strategy used at corporate level considers macro level activities and environmental factors and defines big picture of the company. Strategic planning at business level considers single line of business while corporate level business studies all the businesses of a company combine. It tells how capital will be used among various lines of business (Roth and Morrison, 2005). Airbus has more than a dozen aircrafts that bring huge revenue for company every year. The corporate level strategy deals with the overall processes including supply chain management, the distribution channels for all the jets, client relationship management, corporate marketing and corporate leadership strategies (Roth and Morrison, 2005). According to its official website, Airbus has following guiding principles for its corporate strategy:
Leading by Example: The management of Airbus believes in leading by example. The company has continuously grown even having faced many challenges. The company has laid examples of strategies regarding business procurement decisions, outsourcing, lean implementation, environment regulation and business direction.
Equipped to perform: The management of Airbus is expected to show excellent performance. The managers are equipped with skills, resources and staff in order to display best performance and highest productivity (Roth and Morrison, 2005). The corporate strategy believes that success of corporate is as much guaranteed as are its managers equipped. The managers get frequent trainings to remain current on existing business standards.
Management expertise: The Airbus has 2,000 top managers throughout world. It maps competencies and develops complete profile of managers and leaders so that the company is aware of what level of people it has in management team (Roth and Morrison, 2005). This strategy helps Airbus identify existing gap and to fill performance gaps. Also the company does succession planning by keeping eye on management expertise.
Expansion: Airbus believes in growth. It has been increasing since it was formed. The company grows by acquiring expertise, business operations and entering new markets. The company knows that future lies in global operations and expansion will help do so.
Outsourcing: Airbus outsources many of its operations in order to diversify risks of business operations. Nearly 80% of A380's operations are outsourced.
Using Testing Technology: Airbus uses time tested technology and selects long-term dealers to guarantee excellence. It does not select technology that is not approved or tested well.
Future Planning
The Global Market Forecast of Airbus regarding 2012-2031 predicts that there will be need for around 27,300 passenger aircrafts with more than 100 seats passenger capacity. The GMF also antedates there will be more than double passenger aircraft inventory that will rise from 15,500 to above 32,500 by year 2031. The factors causing rise are growth in population, urbanization, emerging demands, invention and environmental impact. The 20-year distributions of traveler predicted for 2012-2031 Global Market Forecast have around $4 trillion value comprising 19,520 single-aisle aircraft. There is air transportation growth expected for 2012-2031 that is going to be highest in expanding regions, and will be above 6% yearly income passenger kilometer.
Low costs: Airbus has the proficiency of manufacturing aircraft with exclusive design and cockpit at lesser cost that makes Airbus ahead of its competitor Boeing in the number of transports. The Airbus has sufficient funds and assets with ethnically different employees (Roth and Morrison, 2005). The company has multiple suppliers that offer an opportunity to select supplier offering material at lower costs.
Long-Term Success
The long-term success of Airbus is hidden in understanding future needs of industry. The company has pursuit to excel through its management team that can foresee....
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