Strategic Management: aviation industry - Case Study Example

Such type of an innovative change from a normal aircraft is evidenced in the creation of Airbus A380 with the vision of zero emission in the future, which is the biggest aircraft built ever in the aviation industry. Airbus is one of the two leading manufacturers of aircrafts in the whole world employing about 47,600 people and relying on the principles of economy, innovation, safety and efficiency (official website). This duopoly consists of Airbus and Boeing.

Going back in the 1970's Boeing took a giant leap with the creation of B747 having as much as 300% more capacity then the previous B707. Three decades after, Airbus founded that the air traffic had reduced by 5% but still it would double every fifteen years (Morgan Stanley, 2006). There were constraints like fuel prices hike, increasing environmental awareness, limitations on airport and runway constructions and the decreasing air traffic.

The inspiration for survival and growth in this conundrum was the creation of Airbus A 380 launched in 2001, which is the biggest aircraft to fulfil the competition dynamics in the changing economy that are: The speedy economic development in Asia and urbanization.As defined by Mahoney & Mc Gahan (2007), "The strategic management process is full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns".

The process includes determination of the strategic inputs; both internal and external environmental research to understand the available resources and core competencies (p.79). After analyzing all the capabilities and evaluating all the actions, the strategy is formulated. This process is dynamic changing with the varying market conditions and company needs.From 1996 till 2005, around 200 meetings and seminars were conducted with potential customers interested in replacing the B747 like Lufthansa, Fedex, and Emirates etc for better technology and traveller's growth from different hubs.

Airbus's market analysis and consumer consultation in the creation of this immaculate aircraft has been the, most expensive in commercial aviation.Source: Lawrence, P. (2006). Growth, Capacity and Technology: Why the Airbus A380 will be a Major Commercial Success, retrieved Sept 6, 2006 formhttp://www.leeham.net/filelib/A380DEBATEFINAL.pdfAfter the 1980's, the commercial aviation were able to link both larger airports to smaller ones. This hub focused transportation linked many smaller destinations from a central point, which is way more effective then point to point transportation and is more economic.

The A380 is the response to sophisticating the hub spoke system driven by strong market, political and demographic factors.B. The different strategies:"A strategy is an integrated and coordinated set of