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Airbus versus Boeing

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  • Essay length: 6992 words
  • Submitted: 21/09/2009
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University Degree Management Studies

The first 200 words of this essay...

AIRBUS

Executive Summary

The purpose of this assignment is to analyse the strategic dilemma faced by Airbus vis-à-vis its main competitor, Boeing. The author provides the company overview and its corporate mission in an effort to explain the relationship between Airbus and its parent, EADS. An industry structural analysis is undertaken using Porters Five Forces Model to identify the pressures that Airbus face in its industry. In addition, a SWOT analysis reveals the strengths, weaknesses, threats and opportunities of the company. The core competencies of Airbus are identified and compared to that of Boeing. Based on this analysis, the competitive advantage of Airbus is determined. Under strategy recommendations, the author examines the current strategies employed by Airbus and compares them with Boeing. Finally, conclusions are drawn as to which is the more strategic savvy and which company has the more sustainable enterprise. This is based on factors identified by Hamel and Prahalad(1999) book, 'Competing for the Future.' Since its inception, Boeing had been enjoying a virtual monopoly in the commercial aircraft industry, but was threatened by the advent of the European aerospace company, 'Airbus S.A.S.' (Airbus), in 1970. Since then, Airbus gradually achieved a leadership position in the

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