In the 21st aviation industry, Boeing and Airbus are extremely well known and successful in the financial department. There are reasons to prove that these two companies gained lots of achievements. In this essay, i will use the marketing mix’s elements in order to compare the effectiveness of both company’s marketing strategies.
Boeing is the global brand that provides airplane and gives a huge support to the US, US aviation and serve government customer in 150 countries. Boeing 787 Dreamliner is the most popular model in the world, it has many unique selling points which develop a brand image and differentiated Boeing from other producers. Even though Boeing 787 is smaller and has fewer seats than other models, but this is one of the top models that have low fuel consumption. Fuel costs are an airline’s worst enemy. On the other hand, Airbus is also become a quality and trusted brand of many countries governments. Airbus A380 has a larger size and its capacity is more than a Boeing 787. This unique factor helps Airbus A380 increase the airstrip to 15,700km. Airbus A380 included 525 passengers, which attracted investors and buyers.
Boeing and Airbus have many different in the market segmentation and targeting department. Firstly, Boeing segmented their product in the 2 range, which are commercial airplanes; defense, space and security. Commercial airplanes primarily focus on normal consumers, everyone have the ability to use commercial airplane services. In addition, the price is reasonable and affordable, as a result, this range models reach a peak of sales volume and play a part in Boeing successfully. Defense, space and security are oriented to support the army and defense of a country. On the other hand, Airbus separated the ...
... middle of paper ...
...ction, diversity, competitive advantage, etc.
In a modern world, people prefer travelling by airplane rather than other vehicles. The market condition became an advantage for the development of Boeing and Airbus. People life style is different and trend is continuously changing, thus to meet the tastes of customers is important. For example, the Boeing comercial airplane is able to change the decoration outside the cabin which is not only an unique ideas but it is also flexible with customer preferences; the Airbus passenger aircraft did market research and found out a list of favorite songs, movies, games which is meet the taste of customers, then Airbus improved the entertainment system.
In conclusion, Boeing and Airbus aviation company are the biggest manufacturer in the entire industry. They have diference marketing strategy but both companies is successful.
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B. Because the reasons can differ greatly in the motivations for a customer wanting to fly, it can be difficult to divide the market into discrete segments, that is, there is always going to be overlap in the preferences and characteristics of any given segment. With that in mind, the commonalities that are shared between the clientele that make up the respective classes can easily withstand analysis.
Many elements of Delta Airlines are described in detail, within this paper. There is a breakdown of the external and internal factors, using external and internal analysis. Porter’s Five forces are used to create the external analysis, and the key factors for Delta are power of buyers, and rivalry. Delta’s competitive advantages are identified as customer service, sustainability, brand image, strong strategic alliances, and corporate travel. Delta’s main issues are the low expansion in international markets, continuous changing of incentive program, and glitches within technology. Delta should expand more into the Chinese and African markets in order to gain market share within the airline industry.
As airline industry is a competitive marketplace, the airline companies use new technologies to improve their efficiency and decrease the overhead costs, including ‘advanced aircraft engine technology, IT solutions, and mobile technology’ (Cederholm 2014). The technology changes including technology improvement, new innovation and disruptive technology. The disruptive technology need to meet the characteristics of ‘simplicity, convenience, accessibility and affordability’ (Christensen 1995). The technology changes would bring both opportunities and threats to airline companies. Since Labour cost and fuel costs occupy 50% of most airlines operating cost (Groot 2014). Therefore, if new technologies could be disruptive in the two aspects, there will be important changes to current airline
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.
... In order to protect their assets, Boeing is not becoming complacent, and is instead striving to make a wide variety of aerodynamic improvements. This has cemented the 737 as a market leader, and it will retain its lead for decades to come. References Boeing 737-800 Technical Characteristics. n.d. - n.d. - n.d.
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.
Boeing/Airbus Case Analysis Competition in the Commercial Aircraft Business. With only a few large companies across the globe (Boeing, MD, and Airbus), the commercial aircraft industry essentially exhibits the qualities of an oligopolistic competition with intense rivalry. Here is an analysis of competition in the commercial aircraft business using Porter’s Five Forces. Figure 1: Porter’s Five Forces Applied to Aircraft Industry. Barrier to entry: - High barriers to entry, to a certain extent, help understand the risks involved in operating in the aircraft industry.
Boeing is one of the major aerospace and defense contractors in the United States. Boeing was founded by William E. Boeing over 90 years ago and has dominated the industry of aerospace for many years. As the largest export in the United States, Boeing is a listed component of Dow Jones Industrial Average. With a history extending over a very long time, Boeing has seen the errors of their ways in growth and opportunity. Legal issues, ethics and social responsibility have been part of their various learning experience. Planning is an essential element of any business model, and is a constant center of attention for Boeing. Facing the vigorous demands quality aircraft, comfort, product demands, and raging technology advances, Boeing’s management teams have their hands full. While Boeing challenges are not only the need of new innovations, they must stay ahead of their main competitor Airbus, whom has historically been on an upward growth stance. Management at Boeing, through phenomenal strategic, tactical and contingency planning has continued to dominate the industry in aerospace.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
While Boeing has spent many resources planning what to build, Boeing is now faced with the problems of how to meet customer demands for the new aircraft. Boeing Corporation is at an all-time high for sales. "For the first time, its commercial-airplane unit earned more than its defense side. " (Masters, 2007) "Boeing's backlog of orders increased 47% to a record 208 Billion, more than seven times the units 2006 revenues. "
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements to the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion. In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
Market opportunities for breakfast cereals is vast, some segments of the market have been neglected, most notably that of the over-50’s. Insightful presentations were given at the “Older, Richer, Wiser” Conference that would suggest the over 50’s market segment is targetable.
Product Strategy of the British Airways 1.1 Introduction to product strategy Product is the most important component in an organization. Without a product there is no place, no price, no promotion, and no business. Product is anything that can be offered to a market to satisfy a want or a need. It is the core ingredient of the marketing mix and is everything favorable and unfavorable, tangible and intangible received in the exchange of an idea, service or good (Kotler 11th edition, 2003). British Airways is a business offering service products, flights across destinations, in the transportation industry.
The future of passenger aircraft and their manufactures has an amazing outlook. Every year the brightest minds in aviation compile the greatest technological advances towards creating the safest and most economical aircraft on the planet. No detail is over looked, and the bottom dollar is the all controlling factor. From private aircraft to public aircraft, space exploration and beyond, the future is bright for the passenger aircraft market, and everyone who purchases air travel should be excited to see how industry unfolds.
There are different ways in which the Airlines industry is segmented. The first form of segmentation is the area served by the airlines. The "major" serve the entire country and even fly people internationally, the "national" airlines serve the country and provide services to most parts of the country, and the "regional" airlines provide services to single regions or among a limited numbers of cities. Other segments of the industry are the carriers that provide cargo services. Their target market is those customers that provide cargoes.