Boeing And Airbus Case Study

Topic Paper 3

How Boeing and airbus approach the market place?

Usman Ali

Student ID- 2395896

Contents

1. History of Boeing and Airbus

2. Competition and market share in airline business

3. Competition and market share in manufacturing business

4. Conclusion

5. References

History of Boeing and Airbus

Boeing- Boeing was founded in 1997, is the largest aerospace company in the world. The company had been formed by credits to McDonnell Douglas Corporation who had merged with the company in 1997 and by the Rockwell International Corporation who had joined hands with Boeing in 1996. The founder of the company is William Boeing. Boeing is the foremost manufacturer of commercial jet transports. It is also the leading

As we can see from the above table that in the recent past Boeing is coming on top again as the number of orders are nearly similar for both Airbus and Boeing. But Boeing has managed to produce and deliver more number of airplanes in the recent past. The trend continued in 2015 as Airbus received 1007 aircraft orders as compared to Boeing who received 568 orders. But Boeing outnumbered Airbus in delivering the aircrafts as it delivered 709 aircrafts as compared to 556 aircrafts which Airbus has managed to deliver in first 11 months of 2015. In 2015, average production of Airbus is 50 aircrafts per month, it would have to lift production rates by roughly 50% by the end of 2015. While, Boeing is on target to produce and deliver 750 aircrafts by the end of 2015. This clearly shows that the demand for Airbus’ aircrafts is more than Boeing’s aircrafts but Boeing is more efficient in supplying more number of aircrafts in the past three years. This indicates that Airbus might be facing problems in their production department whereas the performance of Boeing’s production department is up to the

So this clearly shows that there is some problem in Airbus production department and Airbus has not been able to identity or minimize it. However there might also be a possibility that there is no problem in the production department but the marginal product of labor in Boeing is higher than the marginal product of labor in Airbus due to which Boeing has managed to produce more aircrafts in the recent past. There might also be a possibility that Airbus is facing bottlenecks in their production department due to inefficient ways of procuring inputs in the past 3 years and this may be due to principal agent