Case Study: Airbus From Challenger To Leader

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Executive Summary The purpose of this report was to provide a detailed strategic analysis of Airbus with respect to its position within the commercial aircraft industry (circa 2003). The introduction of the report introduces Airbus’ long term strategic plan and fundamental values by stating their vision and mission statements. The discussion portion of the report analyzes the external environment of the aircraft industry as a whole and then focuses in on Airbus’ internal environment. Strategic examination tools like PESTEL, Porter’s Five Forces and VRINE are used to help guide the analysis within the discussion session. Conclusions are then drawing as to the status of Airbus’ current strategic plan and its adherence to their vision and mission. Finally, a recommendation is provided with an implementation plan. Airbus and Boeing are battling for market leadership within the commercial aircraft industry. Currently (circa 2003) Airbus is in the lead and has gambled on entering the jumbo aircraft market by launching the A380. Airbus sees the air travel market moving towards larger aircraft, longer hauls with fewer stops. Boeing sees the market moving towards smaller aircraft, shorter hauls and more direct point to point service. In line with this strategy Boeing has launched the 7E7 aircraft. After reviewing Airbus’ situation it is conclude in this report that they still have a competitive advantage in lower manufacturing costs and that they must continue with their A380 and Hub and Spoke strategy. However an immediate review of the wide body segment of the industry is required to ensure Airbus’ current family (A321, A330 and A340) isn’t made obsolete by Boeings new 7E7 aircraft. Table of Contents Introduction 1 1.2 Airbus’ Vision and Mission Statements 1 1.3 Stakeholder Analysis 1 2.0 External Analysis: Commercial Aircraft Industry 2 2.1 Macro

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