Executive Summary Of Airbus Case Study

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The purpose of this report is to provide a Strategic Management analysis of the leader aircraft manufacturer – Airbus. The internal analysis shows that the financial support from the government gave Airbus an advantage against Boeing. Recording an average yearly growth of 10%, Airbus surpassed Boeing in the following years in terms of market share and also the use of innovative technology and processes. Porter’s Five Forces analysis shows that rivalry from Boeing in a duopoly market is the biggest threat. Porter’s Value Chain shows that ‘Operations’ is the main primary activity while ‘Firm Infrastructure’ and ‘Human Resource Management’ are the main supporting activities. Being responsive to changing markets allows Airbus to stay competitive while the rising demand for more efficient aircrafts proves to be a golden opportunity as shown in the SWOT analysis. Under PEST analysis, the ruling of WTO in the litigation between US and EU (if both countries are unable to work out an agreement) on the improper subsidies would be a major impact to the aerospace industry. The ruling on either party would cost billions of retaliatory fines and hundreds of thousands of employees losing their jobs. By implementing the Power8 strategy, Airbus is able to shorten the manufacturing period to six years allowing for cost reductions. Airbus can also reduce supply cost base via a systematic procurement process and partner networks. Airbus will focus on core activities such as stringent quality assurance procedures, constant technology innovations and strategies for commercial excellence using a customer oriented

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