The case analysis will explore anti-dumping and anti-trust laws that affect global competition within the aerospace industry. The government’s role between the competitive firms will be examined. The competitive dynamics between the firms will explore how their management team handles attacks on the industry. I will deploy recommendations and opinions for expansion of domestic and Western segments of the segment will be analyzed.
Global competition The U.S. in 1890 created antitrust laws through the Sherman Act. This law wanted to preserve free trade from the competition by restraining monopolistic activities (FTC, N.d.). Congress enacted two additional antitrust laws in 1914, the Federal Trade Commission (FTC) and the Clayton Act (FTC, N.d.). …show more content…
Before the company’s inclusive strategy to help China, they were at fierce pricing wars between each other. The brutal price wars became an enabler to access emerging markets for both companies, this would leave customers at a better advantage for low prices (DuBois, 2013). If the two companies worked together they wouldn’t have to fiercely compete with each other and reap the benefits by not offering steep discounts (Dubois, 2013). Boeing and Airbus utilize frontal attacks on each other that incorporates similar products, price, and distribution. Both companies use the same distribution supplier, even though Boeing gets more orders than Airbus, both companies have the same number of deliverables to their …show more content…
Building large passenger planes is no easy task, COMAC will need to work their way up. The Chinese have leveraged a competitive advantage in low-cost manufacturing to produce high-quality parts for foreign aircraft manufacturers (Bitzinger, 2013). COMAC will need to achieve success for building top quality and safety planes before they can enter the Western market. Carriers in the Western world will want to acquire medium-tier passenger aircrafts which can be an essential influence for COMAC. COMAC will be able to enter Western countries due to the technological advances from Boeing and Airbus that countries look for. As long as COMAC meets the country’s standards they require, then the planes will be purchased for commercial use (Cosgrave,
Global competition The U.S. in 1890 created antitrust laws through the Sherman Act. This law wanted to preserve free trade from the competition by restraining monopolistic activities (FTC, N.d.). Congress enacted two additional antitrust laws in 1914, the Federal Trade Commission (FTC) and the Clayton Act (FTC, N.d.). …show more content…
Before the company’s inclusive strategy to help China, they were at fierce pricing wars between each other. The brutal price wars became an enabler to access emerging markets for both companies, this would leave customers at a better advantage for low prices (DuBois, 2013). If the two companies worked together they wouldn’t have to fiercely compete with each other and reap the benefits by not offering steep discounts (Dubois, 2013). Boeing and Airbus utilize frontal attacks on each other that incorporates similar products, price, and distribution. Both companies use the same distribution supplier, even though Boeing gets more orders than Airbus, both companies have the same number of deliverables to their …show more content…
Building large passenger planes is no easy task, COMAC will need to work their way up. The Chinese have leveraged a competitive advantage in low-cost manufacturing to produce high-quality parts for foreign aircraft manufacturers (Bitzinger, 2013). COMAC will need to achieve success for building top quality and safety planes before they can enter the Western market. Carriers in the Western world will want to acquire medium-tier passenger aircrafts which can be an essential influence for COMAC. COMAC will be able to enter Western countries due to the technological advances from Boeing and Airbus that countries look for. As long as COMAC meets the country’s standards they require, then the planes will be purchased for commercial use (Cosgrave,