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Competitive Strategies Case Study

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Case Title:

Airbus 350 vs Boeing 787 – Battle for the Skies

Publication Year : 2008

Authors: Md Sadik Hassan,Menaka Rao

Industry: Aircrafts and Ship Building

Region:Global

Case Code: COM0218B

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Over the decades, Airbus and Boeing, the two major players have been at loggerheads for aircraft orders. This case details the intensity of the rivalry between the two companies by elucidating facts and figures of a new aircraft being developed from each of their stables. Boeing’s 787 Dreamliner being designed with new composite material is meant to set industry standards. As according to the company, this aircraft would help airliners save fuel costs. The aircraft is also intended to be tons lighter than other models. Airbus, on the other side, with its A350 XWB intends to offer the airline market with the largest aircraft it has produced till date. Post, Paris Air Show and the Dubai Air Show held in 2007, A350 claims to give a stiff competition to 787. Boeing plans to deliver its Dreamliner by 2008, and Airbus by 2013. Boeing with 5 years of advantage, and confirmed orders, industry observers inquire, if Airbus would beat the time advantage or bank on the strength of the A350, or better still use the time to their advantage and modify the aircraft to being user friendly.<\p>

Pedagogical Objectives:

  • To understand competition existing in a duopoly market<\li>
  • To understand demand and supply of aircrafts in the aviation industry<\li>
  • To analyse the competitive strategies deployed by Airbus and Boeing and the possible threats from various new entrants to their duopoly
  • To analyse whether the competition between Airbus and Boeing would be a healthy sign for the aircraft manufacturing industry or would they lose their market share to the new players of the industry.

Keywords : Airbus 350; Boeing 787; Aircraft Manufacturing Industry; Airbus Boeing; Dreamliner; A350 XWB; European Union; Subsidies; A330; Competitive Strategies Case Study; Bombardier; Commercial Aircraft

Contents : 
History of Airbus and Boeing
Aircraft Orders for Boeing and Airbus
The US Challenge to the EU’s support for the Airbus
The EU’s Challenge of US subsidies to Boeing

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