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Boeing Aircraft Company - Case Study Example

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Boeing Aircraft Company Abstract A comparative analysis between Boeing Aircraft Company and Airbus SAS has been conducted in this essay. As per the findings of this paper, the competition between these two companies has long been existing that has, in the present time, reached a vulnerable situation, which has considerably affected their demand system and market conduct…
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This American aircraft company is also respected for reportedly holding the most diverse, inventive and skilled workforce in the world (Boeing, 2013). The specific areas of competition that Boeing currently witnesses can be identified on the grounds of managerial economics, unique and valued added business strategy applications and managing the various external forces efficiently. In this regard, influence of changing customer behavior and competitive barriers raised by its chief contemporaries (including Airbus SAS) shall be noteworthy (Taylor & Tillmanns, 2002).

Competitive Strategies applied by Boeing and Airbus Boeing has been successful in capturing a large proportion of the current aircraft market and subsequently, acquiring a significant position in the service industry. In the current scenario, Boeing exercises around 54% share of the aircraft market while its total commercial department amounted to $30.1 billion as on the year 2001. Notably, the invention of 747 Jumbo Jet in 1966 by Boeing brought about a revolution in the world of air travel.

Correspondingly, Boeing had approached the aircraft market through a unique innovation of the large sized point to point aircrafts. Recently, it has developed a Wi-Fi inside the plane which will create an ease for the passengers in accessing internet during their journey in air (Taylor & Tillmanns, 2002). As apparent from the discussion, one of the approaches considered with principal significance by Boeing when entering the aircraft marketplace is continuous innovation. A chief competitor of Boeing, as was mentioned above, is Airbus SAS.

Airbus was founded in the year 1970 as a result of association in the European aerospace industry. Later it was amalgamated into a single company by the year 2001. As on 2001, it captured 46% share of the global aircraft market being second to Boeing. Historically, the company was established by the European countries with an intention to compete with the larger American aircraft companies and earn a good subsidiary form the European governments. It has a wide range of product line such as the Twin Aisle A340 and the Single Aisle A320.

It is in this regard that working in a common market and above all, because Airbus was designed with an intention to compete with the American airline industry players, it tends to be a major rival to Boeing (Taylor & Tillmanns, 2002). Similarity and Differences between Boeing and Airbus Boeing and Airbuses, being the major competitors to each other, possess certain similarities as well as differences in various strategic aspects. On the basis of the notions related to managerial economics, both the companies can be observed to operate with a similar approach of customer service oriented management.

Both the companies have therefore been designing the aircrafts keeping in mind the comfort of the customers and their growing needs of convenience as well as security. The aim of both the aircrafts has thus been centered to earn profits along with sustainability by rendering quality services in addressing almost every minute requirement of their targeted customers. Both of these are involved in the creation of additional benefits to the customers by developing newer and innovative aircrafts on a

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