Airbus and Boeing

Boeing-Airbus Sales Approach in Spain

The world’s only two producers of big commercial aircraft, Boeing and Airbus are now in a dogfight. Both of them want to get the order from a Spanish Airline company – Iberia Airlines. Compared with four years ago, when Boeing built 620 planes to Airbus’s 294, Airbus is expected to overtake Boeing this year. By getting the order from Iberia, Boeing wants to turn the tables and Airbus wants to keep the current situation and increase its competition power. When Dupuy, the chief financial officer of Iberia, offers the chance to them, they have to try best to get the order. The problem the Dupuy facing is how to spend the least money for new planes and the problem that the two producers facing is how to get the order between the competition and gain the most profit. Dupuy made the process very competitive: whoever hits it target, who wins the order.

Dupuy played a perfect game during the negotiation. He knew and understood the pros and cons of each company. At each time he talked with the two companies separately, he could push the two companies to his target a little bit closer in order to achieve his target budget at the end. In order to lower the price, he used different approaches. First of all, he provided alternatives to the two aircraft producers. In other words, a competitor is a must have in a price cutting battle. At the beginning of time, when Dupuy showed that they want two suppliers instead of one, the Boeing sales chief was doubted because it had been a long time since Iberia bought planes from Boeing. In order to make Boeing be part of the competition, Dupuy showed Boeing their current advantages in the competition to make them think it is possible for them to win the battle. After that, when Boeing saw the hope, they could not stop to be involved in the competition. During the negotiation, Dupuy also showed his good faith. He flew 14 hours to Seattle to meet with Bright, which made Bright believed that Dupuy...