This document attempts to answer the various questions that hover around the minds of businesses worldwide. Some of the pertinent queries that arise are: 1. Where is the organization headed to in terms of strategic direction? 2. How is the organization performing so far in relation to the direction it has chosen? 3. Where (which business areas, countries, etc.) and why is the organization doing well? What are the reasons for which it is doing badly in some areas? 4. What are the opportunities and threats for this organization? 5. How will the organization capitalize on its strengths and reduce its weaknesses? 6. Where is the organization's competitive advantage? 7. What should the future objectives of the organization be? What are its realistic goals? 8. What choices does the organization have? 9. What would be a good choice for the organization? 10. What are the implementation aspects?
[...] To conclude, the strategy of the two Aircraft companies are very different: Airbus bets on jumbo planes (which allow high margin profit) and hub connections (for international platforms and connections) while Boeing bets on wide body plane and regional connections. Finally, Airbus thinks the Africa market is becoming an interesting target (view answer 8. What choices does the organization have? The choice is so to direct its production in the range of jumbo plane. For that, Airbus is seeking more and more to build customer centers and major air shows in Asia and to create some synergy with the Asian market. [...]
[...] Indeed, Airbus has a shares market of 16% because of the absence of ordering of the national leader company Japan Air Lines, which orders only to Boeing. Airbus is trying to spread there its activities. Besides, Boeing has signed in January 2005 a contract for 60 Boeing 737 with the Indonesian airline company and 20 B737 for a Singapore leasing company according to EADS (European Aerospatial defense and space company). Finally, on a strategic field, Airbus bets on the production of Jumbo planes, while Boeing is betting on the low costs segment and maintains its shares market for the jet with less of 200 seats. [...]
[...] The unsafely on the air market: a real threat Some environmental factors represent currently a real threat for Aircraft Company and which do not have a bond with the economic situation of the market, it is about: -The Sars outbreak in Asia -The war in Iraq, -The terrorism -The crashes Slow economic growth have all depressed airline traffic in 2003. According to BBC news, the industry has recorded a loss about 30$Bn in 2001 and 2002 last years and 10$bn in 2003. [...]
[...] Then, Airbus have less shares market on the jet planes market and for the regional traffic. Thus, it might to continue to create joint venture with the Asian market in order to better know and adapt to the requirements of the local market Finally, because of the strength of euro, Airbus imposed to its subcontractors to decrease down 15% their costs. To capitalize its strengths, Airbus might to continue its differentiation by with its spending in research and development. As an example, the A320 introduced the so-called fly-by-wire system (strategy vertical of differentiation compared to the B787). [...]
[...] Thus, The Asian market is becoming a real opportunity for Airbus: According to Le Monde (edition of 15th September 2005), since 2003, Air Bus dominates the Asian market and for the first trimester of 2005, Air Bus has recorded 350 to 360 firm orders over 285 for Boeing According to the edition on Juny 16th 2005 of the French daily L'Expansion, Air Bus has signed three contracts with three airplane Indian companies: -An order of 100 A-320 for 6 milliards euros with the airplane company Interglobe. [...]
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