Boeing/Airbus Strategic Plan Case Analysis

Boeing/Airbus Strategic Plan Case Analysis

Boeing/Airbus Strategic Plan Case Analysis

Competition between Boeing and Airbus is a direct result of globalization. Boeing is a result of mergers within the US aerospace industry. Airbus however is a consortium from countries in Europe including Germany, France, Spain, and the United Kingdom (Hill, 2009). Airbus also has subsidiaries in the United States, Japan, China and India. There has been fierce competition between these two organizations. They each have strengths and weaknesses, which have led to both success and failure within each organization’s history. An analysis of this history helps to paint a picture of the different aspects in competition between the two. In this way, it presents lessons for reflection.

William Boeing established Boeing in 1916. The company has grown to become the most successful aircraft manufacturing company in the United States. During World War I, there became a need for quality training planes. Boeing became the leading designer of military aircraft. By 1958, Boeing had become the leading commercial jet manufacture in the United States. In 2003, Boeing lost ground to Airbus and lost the position it held as a market leader. However, by 2006, Boeing set yet another record for total commercial orders in a one-year period. It is also important to understand the history behind Boeing’s global competitor (Neumann, Pernkopf, & Scheidl, n.d.) .

In 1970, French and German companies combined to create a consortium and formed Airbus. Soon after, both Spain and the United Kingdom joined this consortium. Each of these four partners operated as national companies. Airbus quickly gained a reputation for itself and became a powerful force within the industry. By 2001, Airbus became a single and fully integrated organization. In January 2005, Airbus introduced the world’s largest and most advanced passenger aircraft, called the A380. This is where some of the best analysis into the...