Case Study: Airbus-Market Leader
AIRBUS - Market Leader
1. History
Airbus SE is a European multinational corporation which operates in Aerospace and Defense Industry. It was founded by European aviation firms to establish a company in order to have better competitive power towards American aviation companies. Thus, with the name ‘Airbus Industrie GIE’ the company was established on 18 December 1970. Furthermore, it was supported by French, West German and the British governments. Initially, while the French company Aérospatiale and the West German company Deutsche Airbus each took a 36.5% share of production work, Hawker Siddeley took 20% and the Dutch company Fokker-VFW took 7% (Airbus history, 1997). The first aircraft which was launched by Airbus was A300. In
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Furthermore, Boeing’s constant big-scaled innovation is being hard to catch because Airbus is relatively new in the market in comparison with Boeing. The new entries to the market by smaller companies such as Embraer, Bombardier affects the sales of A320 family negatively. Besides, Airbus faces a number of financial threats: the recent adverse geopolitical events such as Brexit in 2016, and US elections, regional and global recessions and minor growth in European economies, sharp fluctuations in commodity prices (including oil), currency exchange rates or interest …show more content…
However, with its new global perspective, Airbus’ purpose is a sustainable and safer world. To deliver this, the responsibility to society is not only making profits but also stimulating constant innovation and creating environmental friendly modifications. For instance, by starting "Flightpath 2050" industry plan to reduce noise, CO2 emissions, Airbus aims that purpose. Moreover, Airbus has a number of projects to reduce pollution and dependence on oil. Development of a biofuel for aviation industry is one of the projects of Airbus as well. The company takes into account UN’s 17 global goals for sustainable development and especially strives for ‘decent work and economic growth’, ‘industry, innovation, and infrastructure’, ‘climate action’, ‘responsible consumption and production’, ‘partnerships for the
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