Boeing Aircraft Company - Research Paper Example

Boeing Aircraft Company and Airbus rivalry In the current decades, the level of globalization has increased tremendously an aspectthat has increased the level of competition in the market. This has mainly been led by removal of tariffs and liberalization of markers. For many decades, Boeing Company has dominated the aircraft market but the changing marketing strategies have given an upper hand to Airbus (Newhouse, 2007).Boeing Company approaches the market through taking advantage of changes being experienced in the market in order to maximize its profits.

In addition, the company has been working hard in order to reduce wastes an aspect that have been directly affecting the level of returns in the company. Nevertheless, the company has been taking little interest on the satisfaction of the customer and segmentation of the market in order to concentrate on a specific market. Instead, the company has been generalizing the market in order to earn trust of all customers (Norris & Wagner, 2005).On the other hand, Airbus has concentrated on diversifying the market in order to increase its market size.

In addition, the company has segmented the market an aspect that has enabled it to position itself strategically in the market and earn customer loyalty. Initially, airbus was struggling financially but the move by Boeing Company to concentrate on huge aircrafts that require heavy investment gave the company an advantage over its competitor. Instead, the company has concentrated on producing aircrafts of all sizes in order to satisfying the varying demands in the market (Newhouse, 2007).One of the major similarities between two companies is that if one removes the name of the company in the specification sheet, the forthcoming Airbus A350 XWB commercial jet can easily be confused with that of Bowing 787 Dreamliner.

The production process is so similar that it will take someone sometime before distinguishing the two (Norris & Wagner, 2005).Secondly, A350 of Airbus will be manufactured with approximately 53% of carbon fiber while 787 aircraft that belong to Boeing Company will be made of 50% of carbon fiber. Both aircrafts have the ability to fly for eight thousands miles without the need of being refueled (Norris & Wagner, 2005).In terms of fuel consumption, A350 has the capacity to consume 25% less in comparison with that of Boeing.

Nevertheless, Boeing 787 is claimed to have been made to consume 15% fuel less in comparison to a similar-sized Boeing 767 (Peng, 2009).With the increasing rivalry between the two companies, mostly, the companies are likely to open up different branches in different countries that have cheap labor in order to try and produce the aircrafts at lower prices and therefore, expand the profit margin. In Addition, the rivalry is likely to be directed towards advertising. Intensive advertising is likely to occur as the two companies will be trying to attract the largest customer margin.

This is aimed at creating customer loyalty towards the products and positioning the company in the markets. Also, the companies are likely to look for outside market in order to fill the gap occupied by the rival company (Peng, 2009).Mostly, the result of the rivalry is the development of high-tech aircrafts as companies will be looking to outdo each other. This will result from high investment in research sector by the companies. In addition, a lot of merging and acquisition is likely to be experienced an aspect that is likely to be aimed at increasing the financial base of the companies.

ReferencesNewhouse, J. (2007). Boeing versus Airbus: The inside story of the greatest international competition in business. New York: A.A. Knopf. Norris, G., & Wagner, M. (2005). Airbus A380: Superjumbo of the 21st century. St. Paul, MN: Zenith Press. Peng, M. W. (2009). Global business. Mason, OH: South-Western Cengage Learning.