The purpose of this report is to provide a Strategic Management Report with detailed strategic analyses of the dominant civil aircraft manufacturers Airbus and Boeing. The discussion main part of this report is separated into internal and external analyses, which are reasoned in greater detail and supported with reasonable graphs and tables in the attached Appendices. Finally, conclusions are drawn as to which is the more strategic savvy and which company has the more sustainable enterprise; and there is a recommendation given in which company a potential investor should rather invest in.
Airbus and Boeing are having a neck-and-neck race in the aircraft industry for jets over 100 seats between Airbus and Boeing about the market leadership. After Airbus overtook its rival the first time in 2001 in terms of aircraft order and delivery, it stayed in front the last years until Boeing got back on top in 2006. The aircraft manufacturing industry is constantly growing, a global market and had a size of US$ 63 billion revenues in 2006. It is characterized by high entry barriers and investment in R&D and by a duopoly with Airbus and Boeing having a market share of 86% for aircrafts over 100 seats.
At the moment Airbus is in weaker financial position than its competitor. Boeing had an average year in 2006 with a moderate and good profitability, whereas Airbus is not in the red, but it is remarkable that the company had a bad year caused by the production and delivery problems with the A380, connecting with the delay compensations. In general, both Airbus and Boeing experience a strong support by the parent companies, whereas Boeing’s outstanding and tightened military division strongly keeps the commercial airplane division on the ground and gives it an edge.
In terms of product strategy the strength of the one is the weakness of the other: Boeing found no real answer on the A380 as mega-jumbo, but is highly successful with its B787 in the mid-size, long-range segment, where Airbus is lagging behind with its try to catch up through the A350. The market opportunities for both companies and strategies exist with increasing air traffic, especially in Asia with its upcoming markets China and India. On the other side increasing prices for raw materials or indirectly oil price fluctuations, and the risk of a new external shocks are threatening the performance.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction - Company Background
- 1.1 Airbus
- 1.2 Boeing
- 2 Internal analysis
- 2.1 Vision and Mission Statements, Goals and Objectives
- 2.1.1 Airbus
- 2.1.2 Boeing
- 2.2 Management philosophy and attitudes, Culture and Leadership
- 2.2.1 Airbus
- 2.2.2 Boeing
- 2.3 Strategic Levels
- 2.3.1 Airbus' Differentiation Strategy - ‘Hub-and-Spoke-concept’
- 2.3.2 Boeing's Differentiation Strategy – ‘Direct Point-to-Point-Traffic’
- 2.4 Enhancements of efficiency, quality, innovation and customer responsiveness
- 2.4.1 Airbus
- 2.4.2 Boeing
- 2.5 Value Chain
- 2.6 Strategy Execution Process
- 2.7 Financial Analysis and Comparison of Airbus and Boeing
- 3 External Analysis
- 3.1 Key economics and business characteristics
- 3.2 PESTLE-Analysis
- 3.3 PORTER's 5-Forces and Industry attractiveness
- 3.4 SWOT-Analysis
- 4 Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this report is to conduct a detailed strategic analysis of Airbus and Boeing, comparing their internal and external environments to determine which company is more strategically savvy and possesses a more sustainable business model. The report aims to provide a recommendation for potential investors.
- Comparative analysis of Airbus and Boeing's strategic approaches.
- Assessment of the competitive landscape within the civil aircraft manufacturing industry.
- Evaluation of the financial performance and stability of both companies.
- Examination of internal factors such as management philosophies and operational strategies.
- Analysis of external factors including market trends and economic conditions.
Zusammenfassung der Kapitel (Chapter Summaries)
1 Introduction - Company Background: This introductory chapter sets the stage for a comparative strategic analysis of Airbus and Boeing. It briefly introduces both companies, highlighting their roles as dominant players in a duopoly within the civil aircraft manufacturing industry. The chapter emphasizes the report's goal: to analyze the strategic acumen and long-term sustainability of each company, culminating in an investment recommendation. The competitive dynamic between Airbus and Boeing, characterized by a fluctuating market leadership, is also introduced, setting the context for the subsequent detailed analyses.
2 Internal analysis: This chapter delves into the internal aspects of Airbus and Boeing, providing a comprehensive overview of their respective internal environments. Key areas covered include the companies' vision and mission statements, goals, and objectives; their management philosophies, cultures, and leadership styles; their strategic levels and differentiation strategies (e.g., Airbus's hub-and-spoke concept versus Boeing's point-to-point model); efficiency, quality, innovation, and customer responsiveness initiatives; value chains; strategy execution processes; and a detailed financial comparison. This internal analysis sets the groundwork for the subsequent external analysis and comparative evaluation.
3 External Analysis: This chapter examines the external factors influencing Airbus and Boeing. It begins with an overview of the key economic and business characteristics of the aircraft industry. This is followed by a PESTLE analysis which considers political, economic, social, technological, legal, and environmental factors. Furthermore, a Porter's Five Forces model is employed to assess the competitive intensity and attractiveness of the industry. Finally, a SWOT analysis provides a summarized comparison of the strengths, weaknesses, opportunities, and threats facing each company. This comprehensive external analysis complements the internal analysis, providing a complete picture of the competitive landscape and challenges faced by both companies.
Schlüsselwörter (Keywords)
Airbus, Boeing, strategic management, civil aircraft manufacturing, duopoly, competitive analysis, financial performance, market leadership, internal analysis, external analysis, PESTLE analysis, Porter's Five Forces, SWOT analysis, differentiation strategy, hub-and-spoke, point-to-point, sustainability, investment recommendation.
Airbus vs. Boeing: A Comparative Strategic Analysis - FAQ
What is the main objective of this report?
The report aims to conduct a detailed strategic analysis of Airbus and Boeing, comparing their internal and external environments to determine which company is more strategically savvy and possesses a more sustainable business model. Ultimately, it provides a recommendation for potential investors.
What are the key themes explored in this report?
The report explores a comparative analysis of Airbus and Boeing's strategic approaches, assesses the competitive landscape of the civil aircraft manufacturing industry, evaluates the financial performance and stability of both companies, examines internal factors like management philosophies and operational strategies, and analyzes external factors including market trends and economic conditions.
What does the report cover in its introduction?
The introduction provides background information on Airbus and Boeing, highlighting their roles as dominant players in a duopoly within the civil aircraft manufacturing industry. It also emphasizes the report's goal of analyzing their strategic acumen and long-term sustainability to provide an investment recommendation. The competitive dynamic between the two companies is also introduced.
What is included in the internal analysis chapter?
The internal analysis chapter delves into the internal aspects of Airbus and Boeing, covering their vision and mission statements, goals, and objectives; management philosophies, cultures, and leadership styles; strategic levels and differentiation strategies (including Airbus's hub-and-spoke concept and Boeing's point-to-point model); efficiency, quality, innovation, and customer responsiveness initiatives; value chains; strategy execution processes; and a detailed financial comparison.
What external factors are analyzed in the report?
The external analysis chapter examines factors influencing Airbus and Boeing, including an overview of the key economic and business characteristics of the aircraft industry; a PESTLE analysis (considering political, economic, social, technological, legal, and environmental factors); a Porter's Five Forces model to assess industry competitiveness and attractiveness; and a SWOT analysis comparing the strengths, weaknesses, opportunities, and threats facing each company.
What is the structure of the report?
The report is structured as follows: 1. Introduction - Company Background; 2. Internal analysis; 3. External analysis; and 4. Conclusion. Each section contains subsections providing detailed analysis of Airbus and Boeing.
What is the purpose of the chapter summaries?
The chapter summaries provide concise overviews of the key findings and arguments presented in each chapter of the report, allowing the reader to quickly grasp the main points of each section.
What keywords are associated with this report?
Key words include Airbus, Boeing, strategic management, civil aircraft manufacturing, duopoly, competitive analysis, financial performance, market leadership, internal analysis, external analysis, PESTLE analysis, Porter's Five Forces, SWOT analysis, differentiation strategy, hub-and-spoke, point-to-point, sustainability, and investment recommendation.
What type of recommendation does this report offer?
The report culminates in a recommendation for potential investors, based on the comparative strategic analysis of Airbus and Boeing.
What is the overall scope of this analysis?
The analysis provides a comprehensive comparison of Airbus and Boeing, considering both their internal strengths and weaknesses and the external forces shaping their industries. The goal is to offer a well-informed basis for investment decisions.
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- Sascha Mayer (Autor:in), 2007, Airbus versus Boeing. Strategic Management Report, München, GRIN Verlag, https://www.grin.com/document/87814
