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Airbus: Success or Failure of the Global Strategy?

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Airbus: Success or Failure of the Global Strategy?
Airbus: success or failure of the global strategy?

TABLE OF CONTENTS |

Problem Statement: Airbus: success or failure of the global strategy? 2
Methodology: 2
Analysis: 2 Company Introduction: 2 Airbus Corporate Strategy: 2 Boeing: 3 The essential items to deal with the global strategy (based on the PESTEL analysis) 3 Political: 3 Economic: 3 Socio-Cultural: 4 Technological: 5 Environment (Physical): 5 Legal: 6 Conclusion of the PESTEL analysis: 6 Porter’s five forces analysis: 7 Rivalry among the industry: 7 Threats of New Entrants: 8 Bargaining Power of Buyers: 8 Bargaining Power of Suppliers: 8 Substitute Products: 8 Conclusion of the Porter analysis: 9
Summary of main strategic options and choices: 10
Conclusion: 11
References: 12 Articles: 12 Websites: 12
Appendix: 13

Problem Statement: Airbus: success or failure of the global strategy?

Does Airbus’ strategy give it a competitive advantage in meeting the future demand for air travel? What affect will the loss of government subsidies have on this strategy? Does rival Boeing have the right strategy instead? Will the A380, which is on their strategy, be a successful investment for Airbus?

Methodology:

In this case study we decided to deal with the airbus strategy, that is why we had to analyze the global demand. Starting from this point the use of the PESTEL and PORTER models were necessary to withdraw Airbus options and strategic choices to become the leader of the aircraft industry. These tools are the key framework of this report.
Analysis:
Company Introduction:
Airbus, based in Toulouse, France, is currently the world’s leading commercial manufacturer with 54% of the market share, and has been in fierce competition with Boeing since its inception in 1970. Airbus is a subsidiary of the European Aeronautic Defense and Space Company (EADS). In 2001, Airbus formally became a single integrated company, EADS and BAE transferred all of



References: Articles: Donnelly, Sally B.: “Cliff Hanger”, Time; January 24, 2005, 166(4) 36-37 Borak, Donna: “Who will win: Boeing or Airbus?” United Press International; March 16, 2005 Matlack, Carol: “Commentary: Is Airbus caught in a downdraft?” Business Week; December, 27, 2004 Matlack, Carol: “Looking down from the Airbus Cockpit; Interview with CEO Forgeard” Business week; December 27, 2004 Matlack, Carol and Holmes, Stanley: “Look up – It’s a dogfight”, Business Week; October 14, 2004 The Orange County register: “WTO dispute between Boeing and Airbus” December 12, 2004 (author unknown) Sakai, Tanaka: 10 May 2004, ‘The Fall of Boeing and Japan Airline’, Znet.

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