Saturday, September 7, 2019

Analysis of the Airbus Strategies Adopted in Startup Case Study

Analysis of the Airbus Strategies Adopted in Startup - Case Study Example Airbus’ competitive offer to its customers was a strength because it rivaled established brands. This increased customers and improved Airbus market share in the aircraft industry. Similarly, pooling of financial and technological resources in four European countries in the manufacture of Airbus aircraft was a strength to Airbus. This gave the company the finances required to create a competitive advantage. The last strength was strong industry policy in Europe that favored the success of Airbus, translating to  £ 26 billion in subsidies that enabled the company recovery of 70 % enormous development costs. This improved competitiveness and efficiency of the Airbus, hence competed favorably with established global players, McDonald and Boeing. Two weaknesses plagued Airbus, loses due to discount pricing as a way to gain increased market share and lack of established reputation with airlines on safety, quality and maintenance in the earlier years of the company’s operations. This led to needing reduced prices, improved maintenance practices, and increased competitiveness by Airbus to overcome the weaknesses. The main threat to Airbus was a ready market for McDonald and Boeing from U.S. military equipment. This reduced Airbus competitiveness in the U.S. market due to superior sales and profits by McDonald and Boeing. Secondly, Mc Donald and Boeing control of the U.S. market was a threat to Airbus growth and ambitions of increased market share. A building of high-quality Airbus aircraft acted as an opportunity as it gave consumers an alternative to U.S. aircraft.  

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