VRIO analysis Airbus, aeronautical sector, financial performance, Stelia Aerospace, Premium Aerotec, added value, organization, patent, health crisis, strategic recommendations, competitive environment, new entrants, investment, client satisfaction
Airbus is one of the largest aviation companies globally, as well as at the European level. Finally, it is the world's second-largest group in the aeronautics sector in 2021.
The health crisis has had a huge impact on the sector as well as the group's results. Indeed, in 2019, the turnover of the company amounted to 70.5 billion euros. It was only 49 billion in 2020. Airbus is a group that has several fields of activity, commercial aircraft and passenger transport being the main ones, with 67.2% of turnover. Airbus is one of the pioneers in manufacturing aircraft with more than 100 seats. Defense and aerospace is another area that accounts for 20.8% of sales, and helicopters come last, with 12% of sales.
It should also be noted that Airbus has 24,000 suppliers from more than 100 different countries. Purchases from these suppliers amounted to over 47 billion euros in 2019 and decreased significantly in 2020 to 22 billion euros. Airbus also has 135,000 employees around the world. France has 49,000 employees, Germany 45,000 and the United States around 3,000.
[...] Today, therefore, it is very difficult to imitate them. D. Organization The organization of the company is a very important criterion for development and success, especially in the long term. Indeed, Airbus has an international reputation and several subsidiaries, and without an organization, the group could not retain all its advantages with customers. For the group, everything is organized in such a way as to provide added value. Financial resources are invested strategically, always with a view to the satisfaction and loyalty of an increasingly demanding clientele. [...]
[...] In this article, we will perform the VRIO analysis of the Airbus group. These are mainly analyses of the group's strategic capacities; analysis that completes the SWOT matrix as well as that of Porter's Forces. To this end, we will first see the added value of the group for the market, the scarcity of the services offered, the risks of possible imitations as well as the performance of the organization. Thus, the main objective of the VRIO analysis is to best determine the strategic capacity of the group within the market as a whole. [...]
[...] The Covid-19 crisis had a lot of negative impacts on the group. It is now a question of finding effective solutions to rectify the situation and allow the company to increase its turnover in the years to come. The end of the A380 will allow the group to focus on other aircraft, and develop other opportunities to further improve flight and production rates. The health crisis did not have the negative effects feared by the manufacturer, even if it still impacted the group. [...]
[...] In addition, competitors could very well attempt on a regular basis to poach employees belonging to the Airbus group by offering them better benefits, whether in terms of salary or those in kind. We were talking above about the patents filed by the group, which are, however, very difficult to imitate. Indeed, at the legal level, a competing company does not have the right to attempt to imitate a patent filed by another company. In addition, to file and obtain a patent costs money and is a barrier for many. Finally, let's come back to the distribution system. [...]
[...] Airbus group VRIO type analysis A. Added value for the market The health crisis has certainly had a major impact on the company, but the group's financial resources are very important overall because its status allows it to be able to counter existing competition and to be able to continue to dominate the market despite the difficulties. Despite the crisis, the profit in 2021 amounts to 2.2 billion euros. On the other hand, the group lost 1.1 billion euros in turnover during this period, or 29% of the total turnover. [...]
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