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Airbus A 380: SWOT and Porters Five Forces Analysis - Case Study Example

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This paper "Airbus A 380: SWOT and Porter’s Five Forces Analysis" discusses the Airbus A 380. Much has been written about the Airbus A 380 and how it is the next generation of aircraft that makes it easier for long haul flights to carry more passengers with fewer or no stops en-route…
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Airbus A 380: SWOT and Porters Five Forces Analysis
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Download file to see previous pages In this section, I look at the strategic position of Airbus in the context of the parameters that have been laid out below. The aim is to provide a longer-term perspective to the development of the A 380 aircraft.

With the ongoing economic slowdown, Airbus can expect some of its customers to defer deliveries of aircraft that were ordered prior to the recession. Further, with the cost of fuel going up and expected to remain at higher levels, people’s inclination to travel might be dampened leading to further demand depression. Considering the fact that the Airbus A 380 is primarily a long haul aircraft that is suitable for trans-continental travel, the demand for these aircraft would be from the airlines that have a capacity for the long haul and long-distance flights.

Added to this is the fact that there need to be airports around the world where the Airbus A 380 can land. This is contingent on the airports having longer runaways and bays that can accommodate the Airbus A 380. With many countries in the developing world still at a stage where this capability is not present, the Airbus A 380 may face some issues in this regard.

The wide-body 747-8, as the current new development of Boeings' largest airliner, is notably in direct competition on long-haul routes with the A380, a full-length double-deck aircraft now in service. For airlines seeking very large passenger airliners, the two have been pitched as competitors on various occasions. The table below gives the break up of the features of comparison between the Airbus A 380 and its nearest competitor, Boeing 747-8.

The Airbus-Boeing rivalry can be compared to the Coke Pepsi rivalry and in both cases, the stakes are high and each of the rivals tries to undercut its competitor using all means at their disposal. This includes involving the governments of the US and the EU to aid their respective causes by means of subsidies and lobbying. The lobbying of the countries of the developing world by Airbus and Boeing often takes the form of inducements and quid pro’s contingent on the willingness of the countries to buy aircraft from these companies.  ...Download file to see next pagesRead More
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