Airbus and Boeing Porters 5 Forces
The airframe manufacturing industry is a highly competitive environment that has come to be dominated by two firms: Boeing and Airbus. Airbus is a European joint venture between EADS and BAE Systems headquartered in Toulouse, France and originally founded in 1970 (Mayer, 2007). Boeing, on the other hand, is an American firm founded in 1916 in Seattle, Washington, and now headquartered in Chicago, Illinois (Mayer, 2007). As airframe manufacturing firms, Airbus and Boeing hold 86% of the total market share, thus creating a duopoly. Through an analysis of Porter's Five Forces of the two firms, as a duopoly and as individual firms, one can better understand how influential these firms are to each other and to other firms within the industry.
The first of five forces to be analyzed is the threat of new entrants. Within the airframe manufacturing industry, the threat of new entrants is…...
mlaReferences
Chapter 12: Industry Analysis. (n.d.). Accessed
http://www.wou.edu/~leadlej/Spring%202011/BA%20630/Chapter%2012.pdf
Huber, M. (2009, August 1). The major airplane manufacturers at a glance. Business Jet
Traveler. Accessed 3 July 2013, http://bjtonline.com/business-jet-news/major-airplane-manufacturers-glance
Airbus vs. Boeing
Since strategic management is concerned with the decisions that companies make in order to remain viable, profitable, and competitive, a decision about who to invest in must focus on which company is better equipped to adapt, innovate, and execute in both the short-term and long-term. An investment decision based on strategic management concerns is different than an investment decision based on Internal Rates or Return, Net Present Value, or Average Accounting Returns. Whereas the latter criteria are concerned with numerical assessments of a company's profitability, the former criteria are far more concerned with qualitative concerns such as competitive advantage, relationship with businesses in the supply chain pipe line, ability to lobby regulatory agencies effectively, executive leadership, employee retention rates, and many other qualitative measures. This is not to say that financial and economic measures do not play a role in strategic decision making, they are simply not the…...
Airbus Corporate Strategy
Staffing Organizations
Coffee business is much in demand in Washington D.C. People like to have coffee almost for all the day but there are some peak hours of business between 6:00 A.M. until 10:00 P.M. On weekdays and Monday 7:00 A.M. until 3:00 P.M. On weekends. Although people like taking coffee from coffee shops everywhere in city but the students love to have it after classes. A gourmet coffee shop business is planned to serve students outside a college campus. The business proposal section presented here discusses how the coffee shop will be staffed. The business plan is prepared to elaborate recruitment, selection and assessment strategies to the bank lending money. The business plan is based on staffing requirements of 3 store managers and 10 coffee servers. The staffing objectives will remain same however the methods may improve with time to manage costs of recruitment and selection.
ecruitment Plan and…...
mlaReferences
Bernroider, E., and Koch, S., (2001) "ERP selection process in midsize and large
Organizations," Business Process Management Journal, 7(3), 251 -- 257
Croteau, P., (2012), "Evaluating your Recruitment Efforts: Some Helpful Metrics," Retrieved
Airbus A3XX: Developing orld's Largest Commercial Jet
The report will look at Airbus intentions to develop a new large capacity aircraft called A3XX. This report will start by analyzing the entire airline industry, its trends, and dynamics. This will help to show why adoption of large commercial jets will not satisfy the needs of the airlines now and in future. According to this report, buying Airbus A3XX is not a viable option and this report will go ahead to provide reasons for it lack of viability and at the same time provide alternatives that the Airbus should have adopted instead and the lesson that should be learnt from this case analysis.
In order to compete with the global airline market, the Airbus must step up its game and be a step ahead those of its competitors. The airline industry is characterized with unpredictable fluctuations in the price of fuel, price on…...
mlaWorks Cited
Endres G. (2001) Illustrated Directory of Modern Commercial Aircraft: New York, MBI Publishing Co.
Esty B.C. (2004). Why Study Large Projects? New York. Wiley Esty B.C. (2009). Airbus A3XX: Developing the World's Largest Commercial Jet: Boston, Harvard School Publishing.
Cost Analysis
Boeing and Airbus Potential Joint Venture: Variable Cost Analysis
In order to use the provided information in determining optimum output and price levels as well as to determine whether or not Boeing and Airbus should engage In a joint venture on the VLCT project or would be better served by each pursuing their own individual venture, the simplest approach would simply be to graph the given equations (with the relevant additional information incorporated as necessary) an analyzing variances in slope and points of intersection. This visual analysis can be used to develop direct quantitative assessments of pricing structures and costs at various levels of output, determining the most cost-effective plan of action for Boeing and Airbus both collectively and individually.
Specific components of this method of analysis will include plotting both the demand curve estimated by Boeing along with the company's estimated total variable cost (TVC) curve on the same…...
Boeing vs. Airbus
This paper focuses on Boeing and Airbus. Firstly, the paper discusses the background of both companies and assesses their current performance via SWOT analysis. Secondly, the paper reviews and evaluates the current problem facing both Boeing and Airbus. Thirdly, the paper evaluates alternative policy actions taken by both Boring and Airbus. Lastly, the paper provides recommendations for action.
Case background and situation analysis:
About Airbus
The European Aerospace Company (EADS) has manufactured SAS Airbus at Toulouse in France. The start of well-known Co. Airbus put forward the association of aerospace manufacturers. A co-ordination was formed of Aerospace companies and European defence in 2001 which was partly owned by BAE Systems (20%) and EADS (80%) and was completely owned by EADs in 2006 13th October (Spadafore, 2008).
57,000 were employed in Airbus which has a network of 16 sites in for EU nations: France, Germany, UK and Spain. In end assembling is done…...
mlaReferences
Boeing. (2013). Boeing Facts. Retrieved February 10, 2013, from Boeing Home: www.boeing.com
Mathis, M. (2006). Uncivil aviation: How the ongoing trade dispute between Boeing and Airbus has undermined GATT and may continue to usher in an era of international agreement obsolescene under the world trade organisation. Oklahoma: University of Tulsa.
Rajalashmi, T. et al. (2013). Case Study Analysis: Commercial Airline Industry Airbus & Boeing. Alliance University.
Spadafore, A. (2008). Excess baggage: Weighing the contribution of political and corporate interests in the WTO cases over commercial aircraft subsidies. Miami: Miami University.
Boeing and Airbus
The airline industry is very large and complex but provides important services to the world economy which helps sustain development and provide connections to people across the globe. The purpose of this essay is to examine two corporations, Boeing and Airbus, and compare and contrast their competitive strategy within the airline industry. After discussing these approaches, this essay will suggest some alternative strategies that may be beneficial to both of these organizations.
Boeing
According to its website, Boeing "is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. " Boeing plays a significant role in the security of our national interests as well. Boeing is a major service provider to NASA and is the prime contractor for the International Space Station. The company…...
mlaReferences
Airbus. Corporate Home Page. Viewed 26 July 2013. Retrieved from http://www.airbus.com/company/
Boeing. Corporate Home Page. Viewed 26 July 2013. Retrieved from http://www.boeing.com/boeing/index.page
Denning, S. (2013). What Went Wrong at Boeing? Forbes, 21 Jan 2013. Retrieved from http://www.forbes.com/sites/stevedenning/2013/01/21/what-went-wrong-at-boeing/
In conjunction with the PMO organizational structure, there are contract management process workflows that ensure airlines meet the specifications of customers. This is comparable to the engineer-to-order set of processes at Airbus yet more quickly executed to customers' specific requirements (Berman, 2004). This product development process concentrates on the PMO also coordinating next -- generation product strategies as well, with Boeing choosing energy efficiency over larger, more expensive yet more profitable planes to build.
Strategies compared: Airbus and Boeing
From the highly collaborative approach of Airbus to the project-driven strategies of Boeing, each is ideally suited for any given product strategy. Airbus ironically has created product development strategies that align perfectly with the needs of lower-cost, more energy-efficient commercial jets, yet is stressing their product development process with the behemoth A380. Contrary to their product development strategy is Boeing, which is orientated and based on a centralized PMO strategy, Airbus relies…...
mlaReferences
Shannon W. Anderson, Karen Sedatole. (1998). Designing quality into products: The use of accounting data in new product development. Accounting Horizons, 12(3), 213-233. Retrieved September 23, 2008, from ABI/INFORM Global database. (Document ID: 34653543).
Phyllis Berman (2004, February). Beating Boeing. Forbes, 173(3), 129. Retrieved September 21, 2008, from ABI/INFORM Global database. (Document ID: 576816811).
Business: The super-jumbo of all gambles; Airbus vs. Boeing. (2005, January). The Economist, 374(8410), 55-56. Retrieved September 21, 2008, from ABI/INFORM Global database. (Document ID: 782135091).
Stanley Holmes (2007, January). The Secret Weapon at Boeing. Business Week,(4016), 34. Retrieved September 24, 2008, from ABI/INFORM Global database. (Document ID: 1189394571).
The EU, as a coherent political entity, is a rising political power on the world stage. It is expected to provide a much-needed geopolitical counterweight to the United States and China. However, it can only do this if it can establish an aircraft industry and military industrial base large enough to command the attention of the U.S.
The Current Status of the Airbus-Boeing WTO Dispute
In May 18, 2011, the WTO Appellate Body upheld the Panel's finding that certain EU subsidies to Airbus "caused serious prejudice to the interests of the United States."
These subsidies included financing arrangements provided by EU countries for the development of Airbus aircraft, equity infusions from EU countries to companies within the Airbus consortium, infrastructure improvements, and public land use rights. The Appellate Body found that "the effect of the subsidies was to displace exports of Boeing single-aisle and twin-aisle LCA from the European Union, Chinese, and…...
mla
A lack of proper parts to build these plans would cause delays for the airline because it would not have enough planes to handle the volume of passengers who were planning on flying.
Airbus has done well with paying attention to airline companies' needs. They should continue to do this in the future, as they also look at the way things change and what kinds of things airline companies might want to see in the planes that they will be buying in the future. By doing this, Airbus will remain one step ahead of its competition. The company will continue to be successful because they show that they are interested not only in making what is popular now but in looking toward the future and working to determine what types of engines and modules and aircraft bodies may be created in future years. It is possible that their competitors are…...
mlaReferences
Airbus. (2005). Thai airways international initiates major Airbus fleet expansion. Press Centre. Retrieved from
Lean Synchronization at Boeing
The author of this report has been asked to focus on a particular realm and part of operations management as it relates to a particular firm. The operations management facet that shall be the focus of this report is lean synchronization and the company that shall be the focus is aircraft manufacturer Boeing. Boeing has done very well for itself in the grand scheme of things but they face competition from a good number of companies with the largest competitor being Airbus. Boeing has never rested when it comes to the adjustments and pivots it makes. Indeed, they have been in the news and/or raised the attention of government regulatory agencies like the National Labor elations Board. While Boeing is facing heavy competition and operational management challenges including from the government and overall political climate, they are making the right overall moves in terms of lean synchronization…...
mlaReferences
Airbus. (2015). Alabama -- Airbus, a leading aircraft manufacturer. Airbus. Retrieved 12
October 2015, from http://www.airbus.com/company/ americas/us/alabama/
Chang, A. (2013). Why The AR-15 Is More Than Just A Gun. NPR.org. Retrieved 12 October
2015, from http://www.npr.org/2013/06/24/194228925/why-the-ar-15-is-more-than-just-a -
Other strategies included increased communication and teamwork. More recently, the difficulties faced by the airline following the recession and the fear for jobs has also served to create more unity, but this has not prevented disagreements.
y comparison Airbus is a far more diverse firm, starting out in 1970 as a consortium of manufacturers from different European countries with members from France, Germany, Spain and later the UK. The culture of the organization may be argued as highly diverse, reflecting the national cultures from which the member companies originated. The internal culture had to deal with a wide range differences, including languages and general cultural practices. The firm has also had conflict, in 2011 firm faced a walk out by 11,000 German workers in protest at the requirement for productivity gains (C News, 2011). However, the European firms that made up Airbus, comes from an environment where there is generally…...
mlaBoeing is a U.S. firm, with a long history and good relationships with many U.S. airlines, where there is a nationalistic culture and close relationships with countries such as Japan. However, the culture is one that has been influenced by internal strife at many points in time, with a high union presence following the conflict model (Bryson, 2001). For example, in 2008 the company faced a strike by more than 27,000 workers following Boeings concerns regarding job security and pay when Boeing increased the level of outsourcing cost efficiency and flexibility (Gates, 2008). Bryson (2001) argues that the reason for the emergence of a collective culture characterized by conflict is the result of an employment relationship lacking communication and trust. However, Boeing over the years have sought to overcome this and create more unity, as seen with the rebuilding of the Boeing 737 manufacturing site at Renton, Washington, after it was destroyed by an earthquake (Steelcase, 2005). The redesign of the facility sought to reduce the barriers between management and employees so create a greater level of cooperation. Other strategies included increased communication and teamwork. More recently, the difficulties faced by the airline following the recession and the fear for jobs has also served to create more unity, but this has not prevented disagreements.
By comparison Airbus is a far more diverse firm, starting out in 1970 as a consortium of manufacturers from different European countries with members from France, Germany, Spain and later the UK. The culture of the organization may be argued as highly diverse, reflecting the national cultures from which the member companies originated. The internal culture had to deal with a wide range differences, including languages and general cultural practices. The firm has also had conflict, in 2011 firm faced a walk out by 11,000 German workers in protest at the requirement for productivity gains (BBC News, 2011). However, the European firms that made up Airbus, comes from an environment where there is generally a more cooperative model of collectivism with a higher level of social support (Legge, 2004; Hofstede, 2003).
It may be argued the respective cultures have influenced the way the firms develop strategy for themselves and each other. Airbus started out as the follower; only formed in 1970 when Boeing was already the market leader. Part of the firms' strategy was to find a way to compete which would allow them to compete with the larger firm, this included seeking and gaining government subsidies and support. While Boeing saw this as unfair, it was argued by Airbus and the relevant governments it was temporary, to help place Airbus in a position where they gained a sufficiently string market position and reputation to allow them to
Airbus is currently implementing new logistics processes tat it expects to cut costs by 20%. Part of tis is because Airbus as been flying parts for planes to central locations to facilitate assembly. However, it is peraps more important tat tis increases inventory turnover; because like all airplane manufacturers, Airbus as a backlog: if tis backlog is eliminated or lessened by more expedient manufacturing, Airbus produces at a faster rate and is able to sell more products. Te backlog is also counter-cyclical; customers get teir orders faster wen less are buying. Te current backlog is over four years wereas cycles generally last ten or less wit prolonged recessions rare. Only a sustained recession of more tan several years can treaten Airbus'es production pipeline. Tis is unlikely as air travel as already recovered from its early-2003 low. Accoring to te exercise, a new airplane needs a total of 85 days in…...
mlahttp://news.airwise.com/stories/2003/10/1066964678.html
Airbus Jet Sales Soar. CNN International. January 17, 2002. http://money.cnn.com/2002/01/17/international/airbus/
James Wallace. Airbus sales chief scoffs at rival's 7E7. Seattle Post-Intelligencer. June 18th, 2003. http://seattlepi.nwsource.com/business/127110_leahy182.html
Wings:
Airbus A350 will consist of new all-combined wings that will be common to all the variations of the A350 airliner family. The newly designed wings will be the biggest wing to be ever created for a mid-size / wide-body aircraft capable of boosting the typical cruise speed and increasing the maximum operating speed. The new wings design will incorporate an innovative trailing-edge system and an improved dropped-hinge flap that allows the closure of the space between the trailing edge and flap with the spoiler.
Cockpit:
The production of Airbus A350 family of airliners will incorporate a revised configuration of the cockpit to adopt LCD screens that are different from the Airbus A380-sized display. The revised design will include two central displays and a solitary flight/navigation display for each pilot. While the two central displays will be built up on top of each other, the solitary flight/navigation display will have an on-board information…...
mlaReferences:
"Airbus Letter." (2008, November). Airbus Media Relations. Retrieved September 17, 2010,
Barbosa, Q. (2008, January 21). Projet de Fin d'Etude. Retrieved September 17, 2010, from http://www.g-scop.inpg.fr/~bassetts/Master/Examples/RapportPFE-Airbus-QuirinoBarbosa-210108.pdf
Hamilton, S. (2006, April 4). Redesigning the A350: Airbus' Tough Choice. Retrieved September 17, 2010, from http://www.leeham.net/filelib/ScottsColumn040406.pdf
Comparison to oeing
The general perception is that oeing is the undisputed international leader on the aerospace market and that Airbus is generally unable to properly function and its success is only based on state subsidies and sponsorships. However, in his book oeing vs. Airbus: The Inside Story of the Greatest International Competition in usiness, John Newhouse proves the opposite. He states that Airbus deserves the title of international leader as they produce similar products of sometimes superior qualities than oeing. In addition, they do this by using fewer financial resources and with the aid of fewer people than oeing. Also, to prove their superiority, he cites the years 2004 and 2005, when Airbus outnumbered oeing's sales and orders.
8. oeing 787 Dreamliner vs. Airbus A380
The A380 is the largest airplane on the market, having the ability to transport 550 up to 800 travellers, depending on the model; whereas oeing 787…...
mlaBibliography
Airbus Website, 2007, last accessed on November 6, 2007http://www.airbus.com/en ,
Toulouse Tourist Office Website, 2007, last accessed on November 6, 2007http://www.uk.toulouse-tourisme.com/accueil/index_en.php ,
Airbus Annual Review for 2006, Annual Report and Registration Document 2006, EADS Reports, last accessed on November 6, 2007http://www.reports.eads.com/2006/en/book1/5/2.html,
Newhouse, J., Boeing vs. Airbus: The Inside Story of the Greatest International Competition in Business, Vintage, 2007
Title: The Rise of Political Discontent and Economic Transformation: Analyzing the Emergence of New Dynamics in the 1993 Canadian Federal Election
Introduction:
The 1993 Canadian federal election marked a pivotal moment in Canadian political history, characterized by a significant shift in the political landscape and the emergence of new electoral dynamics. This thesis aims to explore the emergence of these dynamics, focusing on the interplay between political discontent, economic transformation, and the rise of new political parties. It will investigate how these factors contributed to the electoral outcomes and reshaped the Canadian political landscape.
1. The Rise of Political Discontent:
a) Decline of Traditional....
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