Airbus Industrie

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Table of Contents

1.0Executive Summary3
2.0Introduction – Company Background4
2.1 Corporate Mission5
3.0Industry Structure6
4.0PEST Analysis10
5.0Internal and External Analysis12
5.1 SWOT Analysis12
6.0Core Competencies and Competitive Advantage14
7.0Strategy Recommendations16
8.0Potential Fallout18
10.0Works Cited20

1.0Executive Summary

The aircraft industry is on the higher growth projectile due to the emerging markets in Asia and other developing countries. There is a surge in the growth of aviation industry even though there are concerns of high surge in fuel costs. The two market leaders Boeing and Airbus are gearing up to achieve greater market share by aggressive marketing and product innovations. As the market is duopolistic in nature, the rivalry between the two market leaders is on the rise, in their quest to attain leadership in the markets. An attempt is made here to perform a detailed analysis of key strengths of Airbus industry and recommend various strategic measures in order to overcome their problems relating to product delivery and internal conflicts prevailing across Airbus. The market factors are analyzed by using the porter’s five forces framework and infer an overall view of the market synergies existing in the aircraft industry. The macroeconomic study is done by using the PEST methodology and strategic objectives are recommended, with the revelations from the SWOT analysis of the Airbus industry, with respect to the prevailing market conditions. Airbus Industries was started as subsidiary of EADS (consortium of European Aeronautics and Defence Company was made into a wholly integrated subsidiary in 2007. This article focuses on the various internal issues due to political imbroglios prevailing between the partners, the relationship with the EADS, strategic objectives with regards to Boeing’s strategic initiatives and the certain recommendations, that are necessary for the company to enhance their growth momentum to attain the market leadership and increase their clientele, by producing products with high standards of quality and safety.

2.0Introduction – Company Background

Airbus is one of the world's leading aircraft manufacturers, and it consistently captures approximately half or more of all orders for airliners with more than 100 seats. Airbus was initially managed by a consortium of national entities. Airbus France, Airbus Deutschland and Airbus Espana merged to form European Aeronautic Defence and Space Company (EADS) with 80 % shares and BAE systems with 20 %. Airbus became a wholly integrated company in 2006, following the sale of holdings by BAE. The supply and assembly chain is distributed around 16 locations in Europe, with final assembly line at Toulouse and Hamburg. Airbus had established engineering design, sales and support centres in North America, Japan, china and Russia. Airbus is catered by over 1,500 suppliers present across 30 countries. Airbus concentrates the suppliers at the customer’s base and develops ties with the various industries in all the countries.

2.1 Corporate Mission

Airbus' mission is to meet the needs of airlines and operators by producing the most modern and comprehensive aircraft family on the market, complemented by the highest standard of product support. (airbus mission, 2008)

Airbus keenly strives to cultivate values of excellence and innovation among its ethnically-diverse employees and considers its clientele and the stakeholders of the supply chain to be partners with due importance to quality and performance.

Airbus products are always in line with the market expectation and synergies, aptly reflecting the organizational mission and values. Airbus believes that feedback from the beneficiaries and stakeholders are very important and make every effort to implement and upgrade the product chain based on the external inputs as well after...
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