Case Questions & Analysis
Boeing: Strategies to Manage the Competitive Market
CASE ASSIGNMENT
1. Compare the two competitor's strategies. Based on your knowledge of the industry, what conclusions can you draw?
Each company has made series of big bets. In an unsteady industry like airlines, fortune is based upon strategic timing and luck. Airbus, once considered to be small player is now an industry giant. It’s strategy is based on the needs of the market, a standard product line, efficient production method, and successful marketing ploy. Airbus has been able to capture the market share and create a brand name by making airplanes that addressed the needs of the market. A-320 of airbus is attractive to airlines due to low pilot and attendant costs. The A380 is built around the assumption that airlines will continue to fly smaller planes on shorter routes. It also presumes that passengers will want to put up with the hassles of changing planes in exchange for the privilege of traveling in a jet-powered cruise liner. As for Boeing, it had not held commonality among its products. Due to this it has fallen from its number one position. Boeing’s announcement of “offload”, term for outsourcing, has given a whole different meaning to the relationship with the supplier. Boeing's 787 represent an appealing alternative for A380. It's based on a fundamentally different vision, and it is radically different by design. So far, half of the orders for Boeing 787 are from Asia-Pacific. A380 has not been purchased by any American carriers, which means that Boeing will be dominating the super jumbo aircraft market in United States. Airbus appears to be in the Guinness Book of World Records whereas Boeing seems to be making a favorable impression in airline ...