Competitive analysis of the aerospace industry - Boeing and Airbus

Extract

[...] We will now investigate the competitive behaviors between the two giants of the aerospace industry, Boeing and Airbus? We will ask if this competitive dynamic allows them to improve performance or does it represent a danger to their survival. Boeing Diversification Compared With Airbus The two fatal Boeing 737 Max crashes and the outbreak of the global COVID-19 pandemic, which significantly affected both companies, highlighted the need for companies across the globe, including the aerospace industry, to expand their portfolios. [...]

[...] The 787 became the fastest-selling wide-body aircraft in the history of the aerospace industry and opened over 180 new markets for carriers operating this model. Airbus-A350, A350 XWB and A330neo Manufactured from largely carbon fiber reinforced polymer, the A350 aircraft was Airbuses' answer to the Boeing 787 Dreamliner. Airbus produces two versions of this model, the A350 and the A350 XWB (Extra wide body). However, the A350 failed to challenge the 787 Dreamliner, which remained vastly superior in terms of efficiency. [...]

[...] Constant innovation in terms of seating capacity and configurations, engine capacity and increased fuel range are just some of the areas the companies have focused on to improve their products and make them more attractive to their clients. Both companies have seized market opportunities to increase their competitive advantage. For example, Boeing manufactured bombers during World War II, and Airbus has taken advantage of the Boeing Max disasters to propel itself ahead of Boeing in recent years. Conclusion A journalist from Magazine Décideurs stated, "The two giants of the aerospace industry, Boeing and Airbus, are clearly in a situation of duopoly and largely dominate the world aviation market." In order for these two aerospace giants to maintain their market share, it will be necessary for them to collaborate with partners in the industry to expand their product range and develop differentiated products. [...]

[...] Despite extensive negotiations, the company was unable to reach an agreement with Embraer. On April they decided to terminate their efforts to create a joint venture with the company. Boeing and Airbus: Airplane Launch strategy Boeing-B747 The iconic 747 was Boeings' flagship aircraft which revolutionized the aviation industry. Boasting formidable flight and passenger capabilities developed during their innovative manufacturing process, she was dubbed "the Queen of the sky". This incredible new aircraft exhibited a rare combination of both strength and beauty that would change the face of world travel. [...]

[...] Up until this point both Airbus and Boeing had focused their efforts on conquering the large commercial aircraft market. Neither of them had paid much attention to the small commercial passenger aircraft market. The small commercial-passenger market encompasses any aircraft with a capacity of fewer than 100 passengers. The challenge with this market is that the development costs of these smaller aircraft mean there is a much lower profit margin. However, Airbus felt it was important for them to develop this side of their business and made their intentions clear when they purchased the majority stake in the C-Series passenger aircraft from Bombardier. [...]