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the boeing company goals
boeing case study analysis
airbus and boeing case study
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1. Introduction
In the Aviation Industry, there have always been various airframe producers which where competing against each other. Throughout the years, two of them gained the majority of the market share. These two companies are Boeing and Airbus. The American company Boeing has been the market leader for a very long period of time, until Airbus outrunned them for the first time in 2002.
The following paper deals with the History and the development of the competition between the two companies. It will give a brief overview of the different company objections and future market outlooks in relation to the new A380 and Boeing 787 “Dreamliner”.
2. The History of the competition
When William. E. Boeing founded the Boeing Airplane Company, it mainly build small Sport- and Military airplanes. During the Second World War the Aviation Industry grew tremendously. Boeing developed Bombers for the United States, for example the B-29, and helped them to reach supremacy in the air. After the war was over, the company made use of their gained experiences to start building airplanes for the civil air traffic. After already introducing the air-pressure-cabin, Boeing presented the 707, the first Jet-Airplane.
On April 31, 1966 Boeing decided to build an airplane with a capacity for up to 490 people, the Boeing 747. Three years later already, the first “Jumbo” was flying and, like its predecessors it became a huge success for the Boeing Company.
The History of Airbus is a much more recent one. After France and Germany worked on some projects together during the sixties, Airbus Industries was founded in cooperation with the British “Hawker and Sittley” company and the Dutch/German “Fokker” company in 1970. The biggest difference to Boeing was that Airbus allocated their production plants at different locations in France and Germany in order to work more time efficient and support the economy within the areas.
When in 1972 the first Airbus A300 was flying, the company went through a crisis because it couldn’t sell enough airplanes in order to be profitable. Between 1971 and 1977 they only received 33 orders for their airplanes, the same amount Boeing produced in 35 days at that time. But then in 1978, due to positive word of mouth from the airlines which already flew the A300, Airbus received 53 fixed orders and another 41 optional orders. This was the changing point of the company. In 1977 also the British, who up to then backed out of the cooperation due to pressure from the US government, joined Airbus Industries.
Planes have developed immensely through the years. The Wright brothers developed the first plane in 1903.
Boeing is a very interesting company. Boeing may only be one company but they compete in two different markets: commercial airlines and the defense industry. The main competition in the commercial airline market is Airbus. Airbus and Boeing seem to have the commercial airline industry in a chokehold basically having no other competitors. Since the industry has high barriers to entry they will not see much competition anytime soon. Boeing is the American leader in commercial airplanes and Airbus is the European leader, which means they are constantly battling. Their competing aircrafts are the Airbus A380 and the Boeing 747. Both companies have many variations of their respected aircraft and according to Business Insider, Airbus’ A380 outranks
In this paper, I would like to discuss on the video, “21st century jet.” This video is about the launching and testing of the airplane by the Boeing company, 777.The 777 family is designed to fill the size gap between the 767 and 747.The head of the 777 project is Allen Millaley, who promised to do many things which are impossible, produced the plane which is more reliable than any other plane in the aviation history. The first large passenger jet designed completely by computer, the 777 is more complex and innovative than any other airliner ever built.
Boeing is a company that dates back almost a century ago in Seattle Washington by William Boeing. Back in 1916 when Boeing was founded, they manufactured sea planes right out of the Seattle bay. Twenty years later, Boeing’s revolutionary plane was introduced. The Boeing 247 was created and is considered to be the first modern airliner to fly around the world. Boeing operated the planes for commercial purposes. Boeing started u...
The Boeing Company originally started out as the Pacific Aero Products Co., which was founded on July 15, 1916. The name was changed about a year later to The Boeing Airplane Company. The Boeing Company stayed relatively small until World War I when they were selected by Navy officials to produce an order for 50 model C's planes for the war efforts. The company continued to prosper and by the late 1950s, Boeing President William Allen knew that the company had the scientists, the experience and the facilities to lead the company into uncharted territories. He was right, Boeing has emerged as the leading aerospace company in the world today.
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
"It was the jet Boeing didn't build that averted what could have become one of the worst crash landings in the company's 91-year history--and cleared Boeing to conquer the skies again."(Masters, 2007). Boeing's Management team's work hard to plan what project's will be best for customers, lead to the largest returns to shareholders, and keep a reputation of being a world leader in the aviation industry. "In October 2002, executives of the aircraft manufacturer met with a group of global airline representatives at a conference center on the Seattle waterfront. The executives were trying desperately to figure out what to build next to hold off a soaring Airbus."(Masters, 2007) Boeing had made plans to build a high speed jetliner prior to this meeting. Through careful planning and expert decision making Boeing officials found that the world was more interested in comfort and efficiency. Boeing's high speed aircraft would have been a huge economic let down because of the huge price tag and expensive operating costs. After that meeting Boeing changed plans to make the Dreamliner which is a more cost effective and comfortable aircraft that has enough orders to keep Boeing busy building the aircraft for customers until the year 2015. While Boeing has spent many resources planning what to build, Boeing is now faced with the problems of how to meet customer demands of the new aircraft.
United Airlines aircraft have soared through the skies for more than 70 years. Initially used to transport U.S. mail, the planes soon took on a few adventurous passengers. In a matter of years, air travel was embraced by the general public, creating a demand for larger, faster, more luxurious aircraft.
The 737 was originally created on on May 11 1964, however it wasn’t until November 9th 1964 that production was officially approved. On February 19th 1965 Lufthansa placed its first order for the 737-100, and on the 9th of april 1967 the 737 flew for the first time. In 1970, Boeing had less than 35 orders for the 737 and considered canceling the program. Boeing however ultimately decided to cut from other areas and to continue the 737 program. By deciding to continue the program Boeing paved the way for its future success and formed the backbone of many airlines that exist today that solely fly the 737.
Alliance with Airbus: - May never be possible given their histories. Certainly isn’t good for the air travel industry.
Airbus and Boeing have developed similar capabilities, and an intense competition to be the number one in aviation. The market is a duopoly market, resulting in a low profit margin for both companies. There is slow industry growth in the aviation industry, and no clear market leader. The barrier to exit is high, which leads to intense rivalry between Airbus and Boeing.
Technology for any aerospace company is important, and this very much holds true for Boeing. Since its inception Boeing has been at the forefront of aviation technology. They introduced the first modern airliner with the Boeing 247 model (http://www.boeing.com/history/boeing/m247.html). During World War II Boeing manufactured the premier bomber planes based on the model 247 the bomber Boeing designed was so good that even their rivals Lockheed Martin, and Douglas aircraft agreed to manufacture them also. Following the end of the war Boeing suffered significant financial losses from their defense division this experience forced the company to reinvent themselves, and that they did. In the 1950s during the Korean War Boeing started to develop guided missiles. This technolog...
William Boeing founded the Boeing airplane company in early 20th century. After strings of acquisition and mergers, this company grew and became the current largest world aerospace industry. Followed by previous reorganizations in 19990s, this company decided to start its branding campaign in May 2001. This campaign was consisting of lots of effort and structural changes for the first time in this corporate history. The media was showing the initial success of this campaign just after its beginning. Few days after the grand opening of the new headquarter in Chicago, which was part of campaign, the world shocked by the act of terrorism. On September 11, 2001 terrorist used this company’s product as weapon of mass destruction to massacre innocent people. Four Boeing airplanes used by terrorist caused a great concern for this company about its swinging campaign. Some serious decision needed to be taken about branding process.
Michael, D. (2010, June 9).Emirate Airline Orders More Airbus Planes, Challenging Germany’s Lufthansa. The Wall Street Journal, p.B1.
In 1990 Boeing was set to introduce the 777, the world’s largest and longest haul twin-bodied jet at the time. The 777 would serve the medium and long haul markets like the expanding Asian market. Boeing’s main competitors, Airbus Industries and McDonnell Douglas, had already announced plans to produce airliners that would compete directly with the 777. Analysts believed that the intense competition between the manufacturers would serve to depress prices for the airliners. Lower prices for aircraft would mean lower earnings.