In 1940 there were 10 million passengers a year; in 1960 there were 20 million, and now, thanks to the baby boomers, there are 1656 millions. The forecasting announces that air traffic will double in the next 15 years. The demographic environment is clearly increasing, and aircraft manufacturers have a real challenge which is to supply in time to the market.
Currently the world is entering a downturn. The characteristics are a fall in the number of consumers, sales and prices, and fewer jobs. But Airbus has accumulated contracts for the 6 next years. Thanks to its full order book, it will be able to avoid internal crisis.
Today there is an increasing concern about the way we have exploited the planet. People want to be respectful in order to leave a clean planet for their children. Aeronautical builders have understood the concerns, and are working on planes which are more environment-friendly.
Politically, we notice that the rivalry between the companies is more a rivalry between states. Each country wants to be independent of the other which is why they develop their own aircraft industry. Hence, in the next 10 years Airbus and Boeing will see Asiatic companies penetrating the market. The main actors are helped by governments who subsidize the aircraft industries indirectly through research and technology funding in order to develop this business. They also influence some decision as relocation. Other important protagonists are lobbies and political parties. For instance Obama and Mc Cain were in opposition concerning the contract between Airbus and the Pentagon for military planes.
[...] The company's philosophy is to always listen to its customers and maintain in its vision, the forward thinking which has placed Airbus at the forefront of the industry. Nothing is taken for granted. Airbus develops a clear empathy with its customers, encouraging a two-way flow of views, ideas and technical feedback on its aircrafts in service around the world. The firm The company's mission Airbus' mission is to meet the needs of airlines and operators by producing the most modern and comprehensive aircraft family on the market, complemented by the highest standard of product support. [...]
[...] Airbus ensures that every supplier of parts meets the strictest standards on quality The business portfolio The current Strategic Business Units Airbus' Strategic Business Units may be defined by its common manufacturing processes: A company like Airbus has separate units making different planes all based on engineering and assembly processes. Airbus, first SBU could be seen as a differentiation between the passenger aircraft, the military aircraft and the super-carrier aircraft. The passenger aircraft As you can see in the table below there are four kinds of planes in the ‘passenger aircraft' category: - The first, is single aisle” (A318, A319, A320, A321); these planes are the smallest planes of Airbus, and they can accommodate less than 200 passengers. [...]
[...] Airbus and the Pentagon for military planes. Technological To conclude, it is important to talk about the technological aspect. As technology has changed at an unprecedented rate in the last two decades, Aeronautical companies have had to do the same. Today planes are full of technological innovations thanks to the research and development which are also very profitable to other industries. The industry The rivalry among existing competitors Airbus has a historical competitor in Boeing. Both are in close competition every year for aircraft orders. [...]
[...] This plane is used to transport material, particularly the materials used for the construction of airbus planes. Aircraft Description Opportunities Threats Thanks to globalization Airbus has discovered In the future, companies from Asia such new markets. Russia China and India need as Indian and Chinese ones will planes quickly and they are now good penetrate the market. These companies customers. will be very hard to compete with. Moreover, today if Airbus wants to sell Each times petrol prices increase, companies planes to china, it has to build plants have to pay more for the aviation gasoline and in China. [...]
[...] The bargaining power of suppliers Several factors have to be taken into account to determine the bargaining power of Airbus suppliers: - Firstly, there are few suppliers available in the aeronautical market, which Airbus can rely on. Airbus tries to maintain at least two to three keys players for each system or part purchased, in order to maintain supplier competitiveness. - Almost all Airbus suppliers are also suppliers of the competitor, Boeing. - Once a supplier is selected for a program, it is almost impossible to change to another one, due to the high transfer & nonrecurring costs impact. [...]
Online readingwith our online reader
Content validatedby our reading committee