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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
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(Boeing Aircraft Company Research Paper Example | Topics and Well Written Essays - 500 Words)
“Boeing Aircraft Company Research Paper Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1613319-boeing-aircraft-company.
Boeing is a considered the world’s biggest aerospace company and top manufacturer of commercial jetliners, defense, space and security systems (Boeing in Brief, 2011). The company has 63,000 employees around the world and worth $32 billion (Boeing Defense, Space, & Security, 2011).
Merger and acquisition serve strategic objectives. A merger takes place when two organizations of about equal size combine to form one enterprise (David, 2005, p. 213). On the other hand, acquisition occurs when a large corporation, commonly known as acquirer, acquires a smaller corporation, or vice versa (David, 2005, p. 213).
One of the most celebrated mergers in recent history is the merger of two of the largest commercial and defense aerospace companies: Boeing and McDonnell Douglass. In fact, it is actually said by economic and business analysts that few mergers in recent years has attracted so much attention…merger between The Boeing Company and McDonnell Douglas Corporation…this…created the world’s largest aerospace company and the second largest air defense supplier, and combined the last two remaining commercial jet airplane manufacturers in the United States.
Both added with the existing fleet in the year 1983 and 1967 respectively. It started its first flight operation in 1963. However, keeping its increasing demand for decades, more and more were built by the company on yearly basis, other than any airliners, who were in the same race.
An elaboration to this finding has been offered in the discussion of this essay. Boeing Aircraft Company Boeing Aircraft Company is one of the largest manufacturers of military aircrafts and commercial jetliners. Boeing believes fundamentally in the expansion of its products and services to meet the changing desires of the customers through utmost quality assurance, in accordance with the prescribed relevant legislative norms.
Boeing Corporation is the second-largest aerospace and defense contractor in the world. In addition to that, it is the largest exporter in the United States. It is well known worldwide as it deals with many responsibilities. Ethical, legal and social responsibilities are the major factors that have an impact on management planning.
t highlights the problems it faced as a result of its traditional organizational culture and what the management had to do to overcome these setbacks. Boeing faced stiff competition from rival companies, had a near bureaucratic leadership therefore criticised for not adapting to
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