Revolution in jumbo jet market

Airbus - Boeing

Airbus-subsidiary

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of EADS,European aerospace company founded in 1970 Revenue-US $57 billion. Manufacturer of the world's largest airliner, the A380.

Boeing-founded in

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1916 by William E. Boeing in Seattle, Washington. Revenue-US$ 64.306 billion largest global aircraft manufacturers by revenue, orders and deliveries.

.A380 v/s Boeing747  A380-maiden flight on 27 April 2005 nickname Superjumbo 555 passengers  Boeing747-First flown commercially in 1970 Nickname-Jumbo Jet. of which 58 have been delivered. or Queen of the Skies 416 passengers Cost-US$228–260 million Range-13.200 km Speed-900 km/h As of Oct 2011 236 firm orders for the A380.450 km Speed-920 km/h 1.418 units sold             Cost-US$375.3 million Range-15.

Demand for more transcontinental flights with more capacity.SWOT analysis-Airbus   Strengths: Opportunities: support from European Union Wide range of models-twin engine mid sized to four engine gigantic sizes Weakness:   High cost & longer time for design & production rise in demand for air travel. Threats: Boeing Airline Disasters. Terrorism. increase in aviation fuel prices .

SWOT analysis-Boeing o o strong brand name in commercial airlines.slow down in aviation market . production of new low cost aircrafts. delays due to suppliers & manufacturers Strengths:  Opportunities:  increase in air travel innovative concepts for attracting customers Asian market –growth for defence & commercial aircrafts Threats: Airbus increase in jet fuel prices. America’s largest exporter. weakness: high R&D costs.

PEST analysis -Airbus .

. The tension between Middle East and US. Political factors: Liberalization of travels between EU and US . gives a slightly higher preference to a non US manufacturer and Airbus is an automatic choice.

wars could affect the economy. . Economic factors: Oil price Increase can decrease demand. terrorist attacks.

 Social factors: Change in the life style of people –increased air travel. . Luxurious mode of air travel by people.

Technological factors:  More Fuel efficient engines for longer range. Carbon Fibre used in Construction of the body.  . Technological advancements to reduce CO2 emission and Noise generated.

Regulations by the US & European govts proves to be a major force for orders for new aircraft and engines. .PEST analysis-Boeing  Political factors: The US Govt &(FAA) influence the air transport.

Fuel costs. Risk of terrorism  .Economic factors:  Aircraft manufacturers rely heavily on subsidies.

using computer technology to build a prototype-cost effective. Use of lighter materials. Technological factors: The supersonic transport. Social factors:  Anti-US feelings due to recent Iraq & middle east wars affected on Boeing's sales . .

Use mobile defense strategy-the products includes :Commercial airliners Military aircraft Munitions Space systems Computer services . B747 had earned the company $20 billion in profit for last 30 years.2% They introduced B747 jumbo jet in 1970 Monopolist in the market of jumbo jet aircraft till 2000.Boeing as the leader      They have market share of 51.

 Use frontal attack to challenge B747.  .bar.3%.Airbus as challenger Market share of 44.  Came up with A380 to challenge B747 in 400+ seat jumbo jet aircraft segment  Added extra features to A380spa.  Only competitor to Boeing in commercial aircraft segment. casino.

Marketing Strategy: BOEING Defensive  Direct point to point flights  Concentrates on efficiency  Introduced sonic cruiser as a high speed jet but later changed it to 787dreamliner.  .

Current Customer Database management Production efficiency Relationship marketing myopia • Relationship seekers • Relationship exploiters • Loyal buyers • Arm’s length transactional buyers .Marketing Strategy: AIRBUS     Reduced operating cost per seat.

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 Boeing might come back up as a strong competitor to Airbus with better technology.  Boeing may provide stiff competition to Airbus if it comes with a similar aircraft as Airbus A380 in that particular segment.  .  A new competitor like Bombardier or Embraer may emerge.What’s in store for the future? Increase in the Asian aviation –leading to increase in no. of aircrafts.

Thank you .

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