Boeing corporation case

Résumé du document

Travelling has become very easy and cheap in the last few years. You just have to book your flight early in order to be able to travel all over Europe for less than 60 Euros. For example, if you want to go in Spain, you can visit the website of Ryanair, choose your flight and book it. Generally, the round trip costs less than 60 Euros. This is an incredible phenomenon!!! The Global civil aerospace industry is a war between two actors: Boeing and Airbus, the American and the European company. After the record of producing the biggest plane of the world, the Airbus 380,which has a capacity of 555 passengers (853 maximum), Boeing tried to achieve the record of the longest nonstop flight- 11000 miles in 23 hours. The Global civil aerospace industry is an oligopolistic market with two competitors and very few potential customers, contrary to other markets like the automobile market which includes a lot of brands car like Ford, Renault, Volkswagen, BMW and Mercedes. These brands have a lot of potential customers. When an airline company like American Airlines orders planes to increase its fleet, it involves an investment of billions. This explains why the global civil aerospace industry is so careful.

Extraits

[...] The Airbus products are more competitive than Boeing's one. Indeed, the Boeing's range of products is obsolete because the company doesn't invest enough money in Research and Development. For example, in 2006, Airbus has invested more than 15% of its turnover in Research and Development, that is to say 5 billion Euros. On the same time, Boeing has just invested of its turnover in R&D. If Boeing wants to have the same R&D's level of Airbus, the firm has to invest from 40 to 50 billion USD over the next 15 years. [...]

[...] Generally, the round trip costs less than It is incredible!!! Global civil aerospace industry is a real record war between two actors; Boeing and Airbus, the American and the European company. Indeed, after the success record of the biggest plane of the world, the Airbus 380,which has a capacity of 555 passengers (853 maximum), Boeing tried to achieve the most long nonstop flight, that is to say 11000 miles in 23 hours. Global civil aerospace industry is an oligopolistic market with two competitors and very few potential customers contrary to other markets like automobile which includes a lot of brands car like Ford, Renault, Volkswagen, BMW, Mercedes They have a lot of potential customers. [...]

[...] As we can see on this table, Boeing has a good position in both haul. It is the leader most of the regions because it has more than 50% of the market shares excepted in the short haul in Europe. Nevertheless, when we analyse the change between 2002 and 2006, its market shares will probably decrease all over the regions. For instance, Boeing market shares forecast to decrease to in long-haul in Latin America and in short-haul in the same region. [...]

[...] In order to be more effective, Boeing must create more direct interactions between its suppliers. This new strategy could allow Boeing to gain precious time and have a better confidence relationship with its suppliers. Fifthly, Boeing has lost a lot of market shares all over the regions excepted in China. Latin America market is very important for Boeing and its market shares has decreased to because of the non presence of partnership in this region. Airbus has raised its market shares to in the last 4 years and if Boeing doesn't react quickly, it will lose this leader position the next few years. [...]

[...] Solutions to change Boeing's current position As I have said in the last part, Boeing has a bad forecast position; nevertheless it is still the world leader for years. If it wants to keep this leader position, the American giant has to react quickly. Firstly, Boeing has to change its old range of product, that is to say invest more in Research and Development. In 2008, the American giant plans to launch the B-787. This airplane could inverse the trend. [...]