Boeing and Airbus: A Global Competitive Battle over Supremacy in Producing Comme
ID: 455319 • Letter: B
Question
Boeing and Airbus: A Global Competitive Battle over Supremacy in Producing Commercial Aircraft Boeing has historically beenglobal leader n manufac- turing commercial airplanes. However, in 2001, Arbus had more orders than Boeing for the first tme in ther competitive history. But, in 2006, Boeing regained irs supremacy with 1,044 versus 790 orders for commercial aircraft. The main turnaround in this batie tor competitor orders has been most visible in the super jumbo category efficient than the arcraft used by Boeing, and Boeing did with Airbus's A-380 versus Boeing's 787 emerging econam es, such as throughout Eastern Europe where smaller arports desire international connections Airbus won the competitor batie that occutred be tween 2001 and 2005 because it focused on the midsized market as well using the A-320 strategy, which competes wh Boeing's 737 and 757 arcrat. The A-320 was more not respond to customer demands to create new, efficient aircraft In fect, it had sowed its innovetion process in aircraft In factr1 had slowed its innovetion processin Apparently in 1992, Boeing and Airbus's parent EADS agreed tojoint study on prospects for uper punto arcraft. The impetus for the study was the growing traffic in the commercial aircraft business was sluggish; new orders China and india. However, Airbus and Boeing reached difter sgnificantly ebbed due to the complications of the terrorist ent conclusions concerning the market trends and the jont attacks and the subsequent recession. It was a bleak time effort was d sbanded regard to new models. Besioes the lack of new models, for Boeing relaive to Aurbus 787 Dreamliner design focused on long-range More recently, Boeings strategy in regard to overal Bpeing's 7 efficient flight, capeble of transporting 250 pessengers, design with the 787 Dreamliner is winning the day, as far as whereas Airbus's strategy focused on long haul fights with the A-380 offering 550 plus seats. In their diverg the order batrle goes. It has also realized success by imple menting a different strategy in regard to the production pro cess. It has been able to speed up the process by creating an efficient globei supply chain that involves many potentiel customers around the world, including Japan, China, and ng strategies, Airbus focused on flying to larger airports that use the huband-spoke system, whereas Boeing concentrated more on a point-to-point system in which smaller airports are more abundant. In realty, the Airbus others. Moreover, Airbus is behind in its schedule to produoe A-380 aircraft, because of its size and weight, is cur the A-380 and its midsced plane, the A-350, has also had rently able to land at approximately only 35 airports. The redesign issues The mdsized A-350, comparable to the Boeing aircraft, on the other hand, can land at many more Boeing 787 is behind schedule and Airbus has had to provide airports around the world and the number is growing in significant incentive discounts to increase future ordersExplanation / Answer
1.What are the strategic issues discussed in this case study?
Answer :-Boeing's 787 Dreamliner design focused on long range efficient flight, capable of transporting 250 passengers, whereas Airbus strategy focused on long haul fights with the A-380 offering 550 plus seats. In their diverging strategies. Airbus focused on flying to larger airports that use the hub and spoke system, whereas Boeing concentrated more on a point to point system in which smaller airports are more abundant.
Airbus won the competitor battele that occured between 2001 and 2005 because it focused on the midsized market as well.
More recently,Boeing strategy in regard to overall design ith the 787 Dreamliner is winning the day as far as the order battle goes. It has also realized success by implementing a different strategy.
In this case study these are the some strategy issues were discussed
2. How should Borders respond to the industrys environmental changes?
Answer :-Unlike ground vehicles, which don't need to be optimised for efficiency to the same extent as aircraft because they can refule often, long-distance aircraft must carry all their fuel with them. Fuel is expensive, heavy and takes up a great deal of storage room. Its weight can limit the range of an aircraft and it needs to be stored in tanks which affect the ing size and payload able to be carried. At the same time, the aviation industry is soing all it can to limit its environmental impact.
Each new generation of aircraft has double digit fuel efficiency improvements, even up to 25% more fuel efficient than the one it replaces. This has led to today's modern aircraft producing well over 70%less CO2 per seat than the first jets in the1950s. But there is more work to do.
New technologies on the horizon have the potential to significantly decrease greenhouse gas emissions from aviation, and solutions that are being implenmented today also promise other savings. Even small savings here and there offer significant benefits in total.
Being able to operate efficiently is critical to the future of the aviation industry, not just for environmental reasonns but also for financial ones, especially since fuel makes up over 30% of airline operating costs. To formalise and compliment the market driven evolution in aircraft fuel efficiency, the International Civil Aviatio Organization agreed on a CO2 emissions standard in February 2016, which will apply to all new aircraft designs from 2020 and newly built existing models of aircraft from 2023.
3.What are the environmental change that your current organization should take into account before implementing their strategies?
Answer “Of course, most of the growth in air transport will occur in the fast-growth areas of the world. They want the opportunities that aviation can bring. We need to make sure that the growth is sustainable and making progress on the environmental issues is an important step in that journey. We have a very proud record in aviation of efficiency gains and we will continue to see improvements. Governments have a significant role to play in helping us achieve this. We hope they can provide us with the support needed at the ICAO Assembly in September.”
This impact takes several forms, including the disturbance caused by aircraft noise and aircraft engine emission is a major concern.
The Aviation companies like Boeing and Airbus has to lookafter their strategiesbefore implementing any kind of environmental raised issues.