Preview

Value creation Airbus vs

Good Essays
Open Document
Open Document
4656 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Value creation Airbus vs
Introduction

For this analysis of Boeing and Airbus, only the commercial planes are taken into consideration. Thus, we will not analyze the military aspect as well as the private jet market.

Value proposition

This part is going to analyse Airbus and Boeing value proposition: targeting audience, main value provided through services, the company’s major competitors, and how LinkedIn differs from them.

From a customer perspective, value proposition is a statement of a specific target customer group within the product/market segment and a set of critical benefits or results you intend to offer to that target customer group. It is also the costs customers have to pay to obtain those benefits.

First of all, Boeing and Airbus have only one type of customers if we take into account only the commercial planes, airline companies. However, each airline company has different needs. Indeed, a low-cost company as Easyjet will look more for small or medium planes, fuel-efficient, able to carry passengers between small and medium airports. On the contrary, Qatar airways, that has built its reputation on its services and business classes, will look mainly for big jumbo jets able to carry lots of people and offering them the possibility to design luxurious business class. However, both Boeing and Airbus produce small, medium and big planes, and secondly airline companies need to buy planes from the two companies in order to stay independent as much as possible. That is why even if they are different, airline companies can be considered as a single type of customer for Boeing and Airbus.

As explained previously, airline companies do not always have the same objectives, with different approaches regarding their services and destinations. Some of them, categorized as low-cost, have for main goal to carry passengers at the lowest price. This is possible by buying small or medium planes, fuel efficient, and by serving small or medium airports. Indeed, they do not need big jumbio

You May Also Find These Documents Helpful

  • Better Essays

    The value proposition - which involve the introduction of a new product or service to market or expand the existing supply (Gitman & McDaniel, 2007).…

    • 1104 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Jet Blue Case Study

    • 1186 Words
    • 5 Pages

    The case of JetBlue illustrates JetBlue’s plan to succeed, and be among the few airlines that have had longevity. Dave Neeleman was the founder of Morris Air, which was later purchased by Southwest Airlines in the mid 1990s. Neeleman models the operation of JetBlue after Southwest Airlines, in doing so JetBlue only operates one type of airline, the Airbus A 320, as a result they will only need to train and FAA certifies their crew of pilots, flight attendants and mechanics on only that kind of plane. JetBlue also operates from smaller airports instead of the busy international airports, in an effort to save on landing fees there’s also a lot less traffic, so airlines are easier to turn. JetBlue is also able to save on flight cost due to the fact that they operate newer airlines that require less maintenance, and a nonunionized workforce, making their wages a lot lower than those of established airlines.…

    • 1186 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Cis 500 Exam 1

    • 780 Words
    • 4 Pages

    A value proposition is an analysis of the benefits of using the specific model (tangible or intangible) in business decision making.…

    • 780 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Week 4 Midterm

    • 844 Words
    • 4 Pages

    A value proposition is a business or marketing statement that promises a value that the customer needs and will benefit from as a result. It is the marketing strategy to convince the consumer why the product or service is needed. An example of a value proposition is a company that may offer access to customer service 24 hours a day. Another more specific example is like the bank Huntington that offers 24 hour grace period for overdrafts. Value to the customer is important because it should evoke customer loyalty. Value propositions should provide the customer with some essential measure of need that leaves them with the belief that they will only primarily be provided with this value from this product or service more so than any other similar brand, product or service.…

    • 844 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    Negotiation between two major companies like Airbus and Boeing can make a marketing strategy very strong or the complete opposite, it can cause a strategy to crumble to pieces in an instant. Airbus and Boeing both have dedicated sales representatives, Bight of Boeing and Leahy to their jobs very serious and developed a marketing plan like none other. These two gentlemen understood one important thing when it comes to marketing, plans must be able to adapt to change at any given moment.…

    • 880 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Apply Porter to Easy Jet

    • 599 Words
    • 3 Pages

    There is considerable rivalry in the airline industry between new and more established businesses. Competition is strong between the budget providers, but is also an important force between easyJet and larger “flag carriers” such as Air France and Lufthansa on short haul routes (where price may be more critical)…

    • 599 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Airbus Q&A

    • 904 Words
    • 3 Pages

    Boeing and Airbus competed in the same 4 segment of the aircraft market. Both companies have been in a tight competition up to the time of the case. In 2005 Airbus sold 82 more airplanes than Boeing did (1,111-1,029), though at the same year Boeing won the orders in “terms of value”.…

    • 904 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Airbus Case Analysis

    • 1553 Words
    • 7 Pages

    1. Reasons that Airbus interested in A3XX  A Revolution Adventure -- The first objective of this project is to fill the market gap by introducing a new type of aircraft. Airbus, with A3XX under the plan, is stepping into an area that Boeing has rarely touched, the very large aircraft (VLA) market. If Airbus well forecasts the future market, A3XX will be the flagship in a new airline revolution. Capturing more than half the VLA market with A3XX, Airbus would constitute an enormous financial success and achieve the ultimate objective-- the leader of commercial aviation industry.  Abundant Financial Resources and Developed Technologies -- Airbus possesses abundant funding resources and cutting-edge technologies which could substantially reduce the training cost. Airbus was prepared to receive around $4 billion development loans from the British, French, German and Spanish governments, repayable from sales revenue. Together with contributions from risk-sharing partners and its own shareholders, Airbus has no need to worry about its financial resources and thus can concentrate on the production and sale of A3XX. In addition, the well-developed aircraft technologies such as fly-by-wire technology, fight deck design, and performance characteristics that are common across the Airbus family pave the way for the A3XX’s development and potential market.  Favorable factors from Context Analysis -- Needs for travelling and cargo transportation are essential parameters which airlines have to take into consideration; hence, they are also vital determinants of demand for commercial aircrafts. According to Airbus’s Global Market Forecast (GMF), air transportation industry is expected to grow at 4.9% annually. This continuous growth demand of the flight market can offer Airbus Company a sound support to launch new types of planes. In…

    • 1553 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Fleet Planning

    • 1046 Words
    • 5 Pages

    One of the most difficult decisions airline managements must make is whether to buy new or used aircraft and what type to purchase. Factors that have an effect on this fleet planning process come from two (2) points of view; the Airline point of view, and the aircraft manufacturer point of view.…

    • 1046 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    Boeing Paper

    • 37585 Words
    • 151 Pages

    This paper will first attempt to explain the legal structure of Boeing and then describe any historical, present, or future litigation Boeing is engaged in. Then the paper will detail the business and analyze its strategic situation. This section will focus on Boeing’s core competency and use the five forces framework to analyze its strategic position. The third second of this paper will discuss Boeing’s marketing strategy as well as detail their competition and how they differentiate themselves in the marketplace. The fourth section will analyze Boeing’s principal accounting statements and prepare a valuation for Boeing. It will also attempt to assess Boeing’s financial performance and standing relative to its past performance and that of its competitors. The next section will cover a research…

    • 37585 Words
    • 151 Pages
    Powerful Essays
  • Good Essays

    Boeing Executive Summary

    • 806 Words
    • 4 Pages

    Boeing is a market leader in aviation manufacturing in the U.S. and abroad. Its structure not only revolves around manufacturing, the company is a leader in defense, space and security development. These multitude of industries are all tied and synched together by their shared services group which responsible for human resources, staffing, wellness, recruitment programs, construction, virtual workplace and various implementations to connect all these industries into a world-wide operation. Boeing has established itself as a differentiator in the aerospace manufacturing industry. An industry that is driven by innovative ideas of flight since the early 1900s when William Boeing start this company by building the first sea-plane. A century later Boeing's immediate future is hinged on the success of a super lightweight aircraft that it hopes to revolutionize the industry and retain its position as the market leader.…

    • 806 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Boeing vs. Airbus

    • 467 Words
    • 2 Pages

    4. Bargaining Power of Customers: High. There are relatively few buyers of large commercial aircraft. In addition, the airlines that purchase aircraft earn low profits thus making them more price sensitive. Also, each customer represents a large portion of the manufacturer’s orders.…

    • 467 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Boeing Market Analysis

    • 7532 Words
    • 31 Pages

    The Boeing Company is a major player in the aerospace and defense industry with over 150,000 employees. As of 2006 they led the commercial and defense aircraft market as the company with the largest total revenue. (Defense News , 2007). The corporation is divided into five separate business units/services. Commercial Airplanes and Integrated Defense Systems are the two major components. The other three units span control over research and development, services and financial services; Phantom Works, Shared Services Group and Boeing Capital Corp, respectively. As of 2006, these three smaller units contributed only 2% of the revenue for the Boeing Company, but played a valuable role in their various supporting contributions to the main efforts of defense equipment and commercial aircraft production and sales. The Boeing Integrated Defense Systems division, producing weapons, aerospace and space systems, accounted for the majority, 52%, of the revenue for The Boeing Company, and 50% of the corporation’s combined earnings. The Boeing Commercial Airplanes division accounted for 46% of the revenue and 45% of the corporation’s earnings. (Boeing, AR06, 2007) It is on this final division that the remainder of this study will be focused on.…

    • 7532 Words
    • 31 Pages
    Powerful Essays
  • Satisfactory Essays

    M1 Annotation Example

    • 268 Words
    • 1 Page

    decisions regarding the choices of types of aircraft and how these choices affected each airline’s…

    • 268 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    This is a case about three different companies dedicated to the manufacturing of aircrafts. Those three major companies are: Boeing, Airbus Industry and McDonnell Douglas; each of one was struggling to produce enough aircraft to satisfy a seemingly unquenchable need for passenger and freight transport around the world, developed in this form many kinds of aircrafts in different models and styles.…

    • 1675 Words
    • 5 Pages
    Good Essays