The purpose of this report is to provide a Strategic Management Report with detailed strategic analyses of the dominant civil aircraft manufacturers Airbus and Boeing. The discussion main part of this report is separated into internal and external analyses, which are reasoned in greater detail and supported with reasonable graphs and tables in the attached Appendices. Finally, conclusions are drawn as to which is the more strategic savvy and which company has the more sustainable enterprise; and there is a recommendation given in which company a potential investor should rather invest in.
Airbus and Boeing are having a neck-and-neck race in the aircraft industry for jets over 100 seats between Airbus and Boeing about the market leadership. After Airbus overtook its rival the first time in 2001 in terms of aircraft order and delivery, it stayed in front the last years until Boeing got back on top in 2006. The aircraft manufacturing industry is constantly growing, a global market and had a size of US$ 63 billion revenues in 2006. It is characterized by high entry barriers and investment in R&D and by a duopoly with Airbus and Boeing having a market share of 86% for aircrafts over 100 seats.
At the moment Airbus is in weaker financial position than its competitor. Boeing had an average year in 2006 with a moderate and good profitability, whereas Airbus is not in the red, but it is remarkable that the company had a bad year caused by the production and delivery problems with the A380, connecting with the delay compensations. In general, both Airbus and Boeing experience a strong support by the parent companies, whereas Boeing’s outstanding and tightened military division strongly keeps the commercial airplane division on the ground and gives it an edge.
In terms of product strategy the strength of the one is the weakness of the other: Boeing found no real answer on the A380 as mega-jumbo, but is highly successful with its B787 in the mid-size, long-range segment, where Airbus is lagging behind with its try to catch up through the A350. The market opportunities for both companies and strategies exist with increasing air traffic, especially in Asia with its upcoming markets China and India. On the other side increasing prices for raw materials or indirectly oil price fluctuations, and the risk of a new external shocks are threatening the performance.
Inhaltsverzeichnis (Table of Contents)
- Introduction - Company Background
- Airbus
- Boeing
- Internal analysis...
- Vision and Mission Statements, Goals and Objectives.........
- Airbus
- Boeing..
- Management philosophy and attitudes, Culture and Leadership.
- Airbus
- Boeing..
- Strategic Levels.
- Airbus
- Boeing.
- Enhancements of efficiency, quality, innovation and customer responsiveness.
- Airbus
- Boeing..
- Value Chain...
- Strategy Execution Process...
- Financial Analysis and Comparison of Airbus and Boeing.
- Vision and Mission Statements, Goals and Objectives.........
- External Analysis ..
- Key economics and business characteristics.
- PESTLE-Analysis...
- PORTER's 5-Forces and Industry attractiveness
- Strength of competitive pressure as an overview:..
- SWOT-Analysis.
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report aims to conduct a comprehensive strategic analysis of Airbus and Boeing, the leading aircraft manufacturers. It examines both internal and external factors influencing their competitiveness. The analysis will draw conclusions on their strategic acumen and sustainability, providing a recommendation for potential investors.
- Strategic analysis of Airbus and Boeing
- Internal and external factors influencing competitiveness
- Comparative assessment of strategic savvy and sustainability
- Investment recommendations based on the analysis
- Duopoly dynamics in the aircraft manufacturing industry
Zusammenfassung der Kapitel (Chapter Summaries)
The report begins with an introduction, providing company backgrounds for Airbus and Boeing. It delves into internal analysis, exploring their vision, mission, goals, management philosophy, culture, leadership, strategic levels, efficiency, quality, innovation, customer responsiveness, value chain, strategy execution process, and financial analysis. External analysis encompasses key economic characteristics, PESTLE analysis, Porter's Five Forces, and SWOT analysis. The report concludes with a summary and investment recommendations.
Schlüsselwörter (Keywords)
The report focuses on the strategic management of Airbus and Boeing, analyzing their competitive landscape, market dynamics, financial performance, and sustainability. Key themes include strategic analysis, internal and external factors, duopoly dynamics, aircraft manufacturing industry, financial performance, and investment recommendations.
- Quote paper
- Sascha Mayer (Author), 2007, Airbus versus Boeing. Strategic Management Report, Munich, GRIN Verlag, https://www.grin.com/document/87814
