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Competitive Strategies Case Study

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Case Title:

Airbus and Boeing: Building Planes in Global Factories

Publication Year : 2006

Authors: Rudrajit Mishra, Abhijit Sinha

Industry: Aircraft Manufacturing

Region:US Europe

Case Code: COM0188K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Lots of fear and apprehension cropped up among the nationals of Europe and America as both the continents’ prime aircraft manufacturer Airbus and Boeing were transferring technical know-how to Asia that they were losing out the expertise to build the next generation aircrafts. Boeing 787 Dreamliner which was due to take the skies in 2007 was being built in a virtual factory, which was spread across the continents. The prototype of the aircraft was being built in several countries (Japan, Korea, China, Australia, Sweden, and Canada). Almost 70 percent of the Dreamliner was being built outside the United States. A350 was the answer of Airbus to Boeing 787.The manufacturing race between Boeing versus Airbus was evolving. Up to 60 percent of the production work of A 350, which was due to be launched in 2010 would be done outside Continental Europe. That even contributed to the battle of racism and corporate war between the US and Europe. Industry people started to apprehend that the volume of the core manufacturing activities that the two companies outsourced to other countries were so big that their national identity was fading away.

Pedagogical Objectives:

  • To discuss the importance of outsourcing in aerospace industry<\li>
  • To analyse the core and peripheral activities in aircraft manufacturing<\li>
  • To discuss the implication of strategies taken by Boeing and Airbus to outsource outside Europe and America.<\li>

Keywords : Competitive Strategies Case Study: Airbus; Boeing; Global factories; Boeing 787 Dreamliner; A350; Aircraft manufacturer; Outsourcing; Europe; America; Civil aerospace market; Cyclical; Political influence; Mitsubishi Heavy Industries (MHI); Kawasaki Heavy Industries (KHI); Ministry of Economy Trade and Industry (METI)

Contents : 
Company Background
Global Civil Aerospace Market: A Snapshot
Strategic Initiatives
Outsourcing: A New Trend And Practice
Outsourcing: A Political Influence
Outsourcing: Airbus Vs Boeing
Outsourcing: Across The Continents
Outsourcing By Boeing

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