The Boeing and Airbus Companies are two of the world’s biggest aircraft manufacturers in the industry. First, let us take a look at some background information regarding both manufacturers, starting with the Airbus Company. Airbus is a subsidiary of the Airbus Group, manufacturing passenger, corporate and freighter aircraft. With its headquarters in Toulouse, France the company has developed strong roots in Europe are causing it to expand on an international scale with subsidiaries fully owned in China, Japan, the Middle East, India and the United States. Airbus has training and spare parts centers in cities such as, Washington, Hamburg, Miami, Dubai and Beijing just to mention a few, with over 150 “field service offices around the world. Next,
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It can be considered as being high because each manufacturer would be trying to outdo each other by means of finding new ways to meet the needs of their buyers. For example, the use of technology is evolving; therefore, the Boeing and Airbus Companies have to establish a way how to implement these technologies in the products they produce. In this case, new entry into this industry would be unlikely, because of the costs and bargaining power of the customers. When making the assessment of both manufacturers one would consider the demand will grow. Thus, the buying power of the buyers will become stronger because of the services they want to provide for their customers. For example, being able to use computers, iPad and other electronic devices aboard an aircraft is a major factor in the 21st century. All things considered, the implication for the nature of the competition in 10 years could be that both of these companies would have to be strategically competitive and innovative. Another example would be the ordering and delivering of products between these manufacturers. Airbus received over fifteen thousand aircraft orders, but was only able to deliver just over nine thousand while the other six thousand plus is on backlog. However, the Boeing Company was able to deliver their entire order of over eight thousand aircraft. In fact, Airbus Company is currently working on its innovative strategy for the next few years. Strategically, their innovative thinking is leading to smarter skies and a way to improve fuel efficiency in the
It can be considered as being high because each manufacturer would be trying to outdo each other by means of finding new ways to meet the needs of their buyers. For example, the use of technology is evolving; therefore, the Boeing and Airbus Companies have to establish a way how to implement these technologies in the products they produce. In this case, new entry into this industry would be unlikely, because of the costs and bargaining power of the customers. When making the assessment of both manufacturers one would consider the demand will grow. Thus, the buying power of the buyers will become stronger because of the services they want to provide for their customers. For example, being able to use computers, iPad and other electronic devices aboard an aircraft is a major factor in the 21st century. All things considered, the implication for the nature of the competition in 10 years could be that both of these companies would have to be strategically competitive and innovative. Another example would be the ordering and delivering of products between these manufacturers. Airbus received over fifteen thousand aircraft orders, but was only able to deliver just over nine thousand while the other six thousand plus is on backlog. However, the Boeing Company was able to deliver their entire order of over eight thousand aircraft. In fact, Airbus Company is currently working on its innovative strategy for the next few years. Strategically, their innovative thinking is leading to smarter skies and a way to improve fuel efficiency in the