BUSINESS STRATEGY ALTERNATIVES & RECOMMENDATIONS:
Airbus has become a leader in commercial aircraft manufacturing relying heavily on an integrated position of low-cost leadership and technology-focused differentiation. Boeing, their major competitor, has a position in the market that has consistently eroded while maintaining an integrated position of brand value differentiation and long term cost reduction through acquisition and economies of scale. In this section, we will discuss two main ideas: first, the new challenges facing Airbus as an emerging industry leader and alternative solutions and recommendations to their current and possible future problems. Our goal is to define how Airbus might maintain their industry leadership in aircraft manufacturing and also recommend how Boeing might redefine their strategy to reclaim market leadership and solve current their list of current and potential problems. First, Airbus needs to address the following problems and issues in order to maintain its current market share leadership: (A)Potential failure to meet A-380 production deadline and costs (B)Threat of imitation of low-cost strategic positioning using technological differentiation by Boeing to re-claim Airbus market niche (C) Resolve or improve the complex semi-governmental multi country business model that slows the decision making process, creates complex labor and legal issues and could potentially limit rapid growth and meet market demands. If Airbus does not efficiently complete the A-380 Super Jet project, they will have failed on multiple fronts. They will have undermined their current position as market leader by undermining customer and industry trust, they will have be impacted by the significant financial risk and debt they took on to do this project and perhaps most importantly, they will have undermined their future business strategy of large scale manufacturing through technological differentiation and more efficient global travel–which...
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