Strategically relevant INSIGHTS / Strategic Challenge at stake
Airbus and Bombardier has a partnership with C series which was announced in October 2017. Competition is strengthening its market positioning, thereby creating new values for customers, suppliers and employees.
With increase in global airport expansion projects, the need for smaller commercial aircrafts is greater than before. Hence, Boeing and Airbus are targeting the production of smaller commercial airplanes to meet the industrial demand.
Market Scenario
Airbus and Embraer predicts a surge in the need for smaller commercial aircrafts with seating capacity for 70-150 passengers. 1- Our Competition
Boeing’s major competitor since 1990s has been Airbus. The airplane industry …show more content…
So, a major challenge that Boeing and stakeholders will have to face is a possible clash of Boeing’s value of working as one Boeing. Because of the military participation in Embraer, a centralizing all Embraer’s activity will not be possible with Boeing; and political pressure can render part of the relationship at stake a good example would be when the US National Security Agency had spied on the Brazilian president in the past which halted completely the deal between the two companies to build and sell F/A-18 Super Hornets together for …show more content…
As we can see from previously mentioned, Airbus’s unexpected move has changed its positioning relative to Boeing. Competitive advantage of Airbus increased, the former diversified its portfolio and increased its market share. Now this situation creates an external driver for Boeing to stand up to competition, otherwise it will be losing its competitive edge.
What would Embraer bring to the table?
The technical know-how, experience in production of smaller airplanes, which Embraer possesses. It is a great advantage for the Boeing team, as it is actively studying whether it will build a new, small twin-aisle jetliner for medium distance flights, but is seeking ways to significantly reduce the jet's development costs.
Boeing has factories only in the U.S. but Embraer has operations in Europe, Brazil and has also been expanding its U.S. manufacturing presence by assembling its business jets in Florida. Upon the deal Boeing’s values of diversity and reach will be
Airbus and Bombardier has a partnership with C series which was announced in October 2017. Competition is strengthening its market positioning, thereby creating new values for customers, suppliers and employees.
With increase in global airport expansion projects, the need for smaller commercial aircrafts is greater than before. Hence, Boeing and Airbus are targeting the production of smaller commercial airplanes to meet the industrial demand.
Market Scenario
Airbus and Embraer predicts a surge in the need for smaller commercial aircrafts with seating capacity for 70-150 passengers. 1- Our Competition
Boeing’s major competitor since 1990s has been Airbus. The airplane industry …show more content…
So, a major challenge that Boeing and stakeholders will have to face is a possible clash of Boeing’s value of working as one Boeing. Because of the military participation in Embraer, a centralizing all Embraer’s activity will not be possible with Boeing; and political pressure can render part of the relationship at stake a good example would be when the US National Security Agency had spied on the Brazilian president in the past which halted completely the deal between the two companies to build and sell F/A-18 Super Hornets together for …show more content…
As we can see from previously mentioned, Airbus’s unexpected move has changed its positioning relative to Boeing. Competitive advantage of Airbus increased, the former diversified its portfolio and increased its market share. Now this situation creates an external driver for Boeing to stand up to competition, otherwise it will be losing its competitive edge.
What would Embraer bring to the table?
The technical know-how, experience in production of smaller airplanes, which Embraer possesses. It is a great advantage for the Boeing team, as it is actively studying whether it will build a new, small twin-aisle jetliner for medium distance flights, but is seeking ways to significantly reduce the jet's development costs.
Boeing has factories only in the U.S. but Embraer has operations in Europe, Brazil and has also been expanding its U.S. manufacturing presence by assembling its business jets in Florida. Upon the deal Boeing’s values of diversity and reach will be