Boeing VS Airbus A380 Business Interior Both Boeing and Airbus share some similar business practices and marketing techniques, but that’s where it stops, the rivalry and competition between the two companies has always proved to be beneficial to clients. Between the two companies, you are able to find the perfect aircraft for your needs. But between Boeing and Airbus, who provides the best marketing to clients, and most important, who has the better product. Boeing 787 Mockup Interior Boeing is staying away from the large capacity aircraft designs and is looking to producing the B787 Dreamliner which will be a quick and fuel efficient. Having already filled the market with 747s, Boeing is looking to capitalize on the demand for direct flights and medium capacity requirements.
Ryan Air versus The easyGroup : A comparison of business strategy 1. What are the main sources of economies of scale, scope and learning that underpin the strategy of Ryanair? The Ryanair business strategy is to be the cost leader in the airline industry. The cost structure of the airline industry is predominantly one of fixed costs. The Ryanair strategy is to keep paring away at fixed costs and increase the passenger load per aircraft to improve profitability.
The end result of this was that Boeing had to step in and provide the engineering anyway. Boeing even had to purchase one of their major tier one suppliers to regain control. This action increased costs tremendously and delayed the first deliveries by 3 years (Denning, 2013). The delays have added to Boeings costs in the form of cash compensation for losses incurred by buyers (Kelly & Sugiyama, 2013). Boeing doesn’t publish sales or cost data for specific planes, but in an article written by Ostrower (2014), Joseph Nadol, (an analyst at J.P. Morgan Chase & Co) stated that “Boeing's unit costs for
Due to the small size of the fuel tank, the airplanes could only travel roughly 290 miles full round trip before landing again. Planes with this short time span could only be used for small tasks which took little time. The airplanes in World War I had single propeller engines and usually had an open cockpit. There were few variations in the designs of planes in the First World War and more in the second. The airplane in the Second World War on the other hand, were much more complex.
The competition has taken advantage of the situation and has managed to grab the market share of Boeing over in few years. The considerable market share of Boeing, 70%, has now dropped to half and EADS’ position has considerably risen in the market. Now, Boeing wants to focus all its resources in gaining back its past glory in commercial airline sector. Both of them looked at the future in almost opposite way. EADS considered the future as the era of “big, large and expensive” airplanes and whereas, Boeing considered that in future we will need cost-effective considerably smaller planes.
Besides, with a big movement of launching E190 in 2005, some small but critical problems loomed: Compensation of pilots, satisfaction of customers and employees, challenges for staff to adopt unexpected changes, complexity resulting from the integration of E190 and A320. Without experience of operating two types of aircrafts and combining them, as well as without sufficient capital, large scale of purchases of the new aircraft would definitely lead to operational failure. It was the key principle for JetBlue, which made a difference from other airline companies, that fight cancellations should be avoided at all costs. Unfortunately, this principle was challenged by the unexpected bad weather on the Valentine’s Day of 2007. The potential issue of operating system finally gave rise to serious flight cancellations, which reminded JetBlue of fixing its
Because of the strategic alliance with Embraer, JetBlue played a significant role in designing the interior of the aircraft to improve passenger comfort, a key component of their differentiation strategy. This led to the introduction of the Embraer E190. Unfortunately, the reality of the situation turned out to be much different than what JetBlue had anticipated. The process of adding a new fleet of aircraft was wrought with complications, and coupled with the disastrous Valentine’s Day fiasco JetBlue must rethink the new strategy they had undertaken. SOLUTION STATEMENT In order for JetBlue to compete in the point-to-point and regional market segments, it is recommended they develop a new business model which includes maximizing the potential synergies, as well as minimizing the costs associated with the intricacy of the JetBlue organization.
3. The low-fare airlines strategy contributes a lot to the success of JetBlue. * JetBlue imitates Southwest Airlines to operate low-fare model that includes high-frequency, short-haul, point-to-point, low-cost service strategies. 4. JetBlue provides advanced and technological services to the customers, aiming to establish a professional brand in airlines industry.
I would say that JetBlue would fall under both customer intimacy and product leadership customer value proposition. According to Noreen, Brewer and Garrison (2011), companies may offer their customers more than one of these propositions. Mainly, think that they fall under the product leadership customer value proposition. Even though they have customer feedback and have done research on the other airlines on how to serve them, it is the product as well as the service that keeps people coming back. 2.
JetBlue also has less congested airports, which helps to speed flight departures and get their passengers to their destinations in a faster manner. Some of the marketing techniques that JetBlue uses are web-based ticketing, which is then used as a distribution channel. They have a sophisticated market segment properly identified for the business travelers flying point-to-point and of course effective pricing which gives them the edge against their competitors (Evans, 2007). As for service, JetBlue is always in constant communication with customers to