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Airbus and Its Activities in the Civil Aircraft Manufacturing Industry - Case Study Example

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This paper "Airbus and Its Activities in the Civil Aircraft Manufacturing Industry" presents a deep insight into Airbus and its activities in the civil aircraft manufacturing industry. The critical success factors of the industry have been considered strategically by Airbus…
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Airbus and Its Activities in the Civil Aircraft Manufacturing Industry
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Download file to see previous pages The global civil aircraft manufacturing industry is dominated by two major players Airbus and Boeing. Boeing is headquartered in the US while Airbus is headquartered in France. Though there are smaller players in the industry from many parts of the world, the industry still stands on the big names Airbus and Boeing. (Xu and Chan, 2008)

Sustaining the position of the strongest player in the industry was not a situation that simply happened. But it was a result of continuous innovation and the right strategic choices. Airbus has always been successful in making the right strategy for playing well in the industry. The civil aircraft manufacturing industry is a highly sophisticated and high growth industry. The market for civil aircraft is expected to be high in the coming years. With the world becoming a global village people are required to be moved from one country to the other. This necessitates the usage of air travel. With a large number of airline companies and fewer aircraft manufacturing companies, Airbus literally enjoys a monopoly in the market along with Boeing. But still, as competition increased, both the companies realized that they need to compete in the industry like any other companies that compete in an industry of larger players. “Airbus’ latest Global Market Forecast provides an industry outlook for the 2009-2028 period, during which it projects a 4.7 percent annual increase in overall world passenger traffic. The document evaluates how air transport will meet this rising demand – detailing such factors as fleet growth, aircraft size, emerging markets, innovation and the reduction of its environmental impact.” (Airbus, 2010) This research work analyses the critical success factors of the civil aircraft manufacturing industry and the strategies used by Airbus in the industry to capitalize on the critical success factors.

Innovation: Innovation is one of the critical success factors of the aircraft manufacturing industry. Innovation involves developing technologically advanced aircraft. If Boeing has a better technological feature than Airbus, customers will shift from Airbus to Boeing. ...Download file to see next pages Read More
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