Comparison of Operation Strategy and Operational Performance Objectives between Boeing and Airbus
1. Executive Summary
The aerospace industry has become one of the biggest industries in the world. For the last many years the Boeing has become a leader in the airline industry due to the technology it has employed and the new models it produces. As a result of the company expanding all over the world, the management tries to incorporate the latest technology. Airbus is a European company formed by integration of small companies. The market share of Airbus, has gone up by 50 percent since the year 2005. Its mission is to become the world’s leading manufacturer of commercial and military planes.
There have been many problems that have affected the commercial airline industry over the last ten years. Logan (2006) notes that the industry was affected tremendously by the terrorist attack on September 11, 2001. Many airlines have been struggling specifically the two biggest companies, the Boeing and the Airbus. The two are in a fierce competition with each other so as to maximize their profits. Even though the two companies operate in the same industry, each one of them has adopted a different strategic plan so as to attract new business. Said (2013) documents that by examining the strategies employed by each of the two companies it will be quite clear to discover the company that will emerge the winner. Employing this as a basis of research, this paper is going to look at the different strategic plans that have been adopted by each of the two companies. It is also going to compare the operational performance objective of the two companies.
2.0 Operation strategy
2.1 Consumer strategy
Operation strategy is the decision which shapes the long term capabilities of the company’s operations and their contribution to overall strategy through the ongoing reconciliation of market requirements and operations resources. So as to begin the investigation, it is...