Airbus Case Study 3

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Case: Airbus A3XX: Developing the World’s Largest Commercial Largest Commercial Jet

Question:
1. Who own Airbus? Who owns Boeing?
a. Airbus- EADS (Germany, France, England & Spain – financially more stable), Boeing (100% public-listed company – there’s shareholders issues, tendency when bankruptcy happens it will close shop) (3rd smaller, McDouglas) 2. What is the difference between Airbus and Boeing? Strategically, how important is the very large (VLA) aircraft market to the future success of Airbus? b. Boeing is more stable and more superior, dominance with 747, hence price with premium prices (with the initial sole supplier Boeing created a monopoly and with high demand, charge at premium price, once customer buys one tendency to continue buying the same model for cost-effective maintenance) * Critical to US economy (2nd largest defense contractor to US govt., employs 190K largest single contributor to US balance of payment in terms of exports * Boeing fleet with 14 models and 5 aircraft families with different technologies * VLA presence – flagship Boeing 747 carries 420 passengers and other high density models carry 550 passenger * Sales and income is good, as one-stop shop

c. Purpose of consortium – pool resources to produce more competitive line of commercial arifcarct, use Airbus umbrella as a mktg operation, 80% own by EADS and 20% own by England principle aoeroscpace company BAE * Always bailed out by govt

* 9 basic model, Different fleet with same tech, same cockpit but big gap in VLA, * Strength: one pilot can fly all planes, lower training cost, 3. Who are Airbus’s customers?

d. Mix
4. What is the customer value proposition for the Airbus A3XX, and how well would it address the needs of customers in the VLA segment? e. Consortium of experts-> VLA with cost effectiveness->Niche, specialized->Customer experience-> 5. What are the distinctive...
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