Airbus: Competitive Analysis and Strategy Suggestion

Executive Summary

In the late 1960’s, Airbus was launched by a transnational consortium consisting of Britain, France and West Germany. Their initial mission was to penetrate the aerospace industry to end the monopoly of American manufacturers. Using a variety of analytical tools (VRINE, PESTEL, Porters Five Forces, Value Chain Analysis and SWOT analysis) I will address how they did this by surveying the industry, finding a niche and using their resources to exploit that niche and gain a foothold, and eventually the largest market share in the aerospace industry.

Airbus’ mission is to meet the needs of airlines and operators by producing the most modern and comprehensive aircraft family on the market, complemented by the highest standard of product support. The current vision of Airbus seems to have come a long way from their initial purpose for formation. Following the initiative of CEO Louis Gallois, EADS (parent to current Airbus company) has formulated a strategic roadmap called Vision 2020. This blueprint for EADS' future was presented to the Board of Directors in January 2008. Since then, it has been turned into a Group-wide action plan, applied by every Division (Gallois, L. 2008):

“We aim to achieve:

• A better balance between commercial aircraft and our other activities.

• A better balance between platforms and services.

• A better balance between our European roots and our global footprint

• Furthermore, we aim to become truly eco-efficient.

• The ambitious targets set out in Vision 2020 call for highly engaged people, innovating beyond technologies.”

Through careful analysis of Airbus’ entrance into the market using a variety of methods, I will prove that Airbus’ entry was well thought out and executed. In addition, I will propose a market segment for future growth for Airbus.

PESTEL Analysis

A PESTEL analysis addresses external environmental factors that can impact a firm and shape its future by the impact of those factors. It is...