Airbus and Boeing: Divergent Growth Plans



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Code : COM0008

Year :
2004

Industry : Aircrafts and Ship Building

Region : USA Europe

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Since its inception, Boeing enjoyed a virtual monopoly in the commercial aircraft industry. But the advent of the European aerospace firm, 'Airbus Industrie', in 1970, posed a major threat to Boeing's dominance in the commercial aircraft market.

Over the years, Airbus gradually made its ground riding on government funding and innovative technologies. For the first time in 2003, Airbus became the world's largest manufacturer of commercial aircrafts by surpassing Boeing in market share.

Competition among the two reached a new dimension when Airbus announced the A380 Superjumbo. Airbus touted the A380 as the future of commercial aviation, as it saw a huge demand for larger aircrafts. In contrast, Boeing asserted that smaller and faster aircrafts would rule the market and announced its plans to build the 7E7 Dreamliner.

Pedagogical Objectives:

  • To discuss the dynamics of the commercial aircraft industry
  • To understand the market factors that have driven Boeing and Airbus to adopt different approaches
  • To understand the resulting shift in the manufacturing practices at both the companies.
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    Keywords : Boeing; Airbus; A380 SuperJumbo; 7E7 Dreamliner; Two philosophies; McDonnell Douglas; European Aeronautic Defense and Space Company; Competitive Strategies Case Study; SARS (Severe acute respiratory syndrome); Unfair trade practices; Government subsidies; Rise of Airbus; Risk sharing partners; Financing the A380

    Contents :
    The Boeing Company
    The Rise of Airbus
    Battle for Future Markets


    Case Introduction >>


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