SECTION I: IntroductionBrief of the CompanyThe airbus company is one of two leading manufactures of commercial airplanes in the world the other one being Boeing. In fact the company currently obtains almost half of the word’s orders on airplanes that have more than 100 seats. Airbus is a subsidiary company of the European Aeronautic Defense and Space Company (EADS) based in Toulouse, France and the company has significant investment across Europe. The Airbus Company was established in 1970 by the EADS and has continued to expand into other sectors for instance the military transport aircraft sector (Kundnani, 2009).
Brief of the QuestionOnce the company was established it failed to attract customers and consequently it failed to get orders for aircraft manufacture for a period of over eighteen months. However, the company adopted measures that gradually overcame those difficulties by extensive marketing among others. This report discusses these initial problems faced by Airbus and the analysis of the strategies adopted by the company to overcome them (Kundnani, 2009). This report focuses on the strategies applied to achieve the market leadership and the sustainability of strategies over a long run.
Finally this report analyses the structures of the aerospace industry over all these years of the existence of the Airbus Company up to the summer of the year 2009. As well, the essay will report on the effect of the aerospace industry with respect to the competition between the chief players; Airbus and the Boeing. Purpose of the ReportThe purpose of this report is to present a case study that focus on the Airbus as an aircraft manufacture company with respect to the following considerations: a brief history of the company, the initials marketing problems experienced and the strategies used to overcome them, the nature of the competition between the airbus and the Boeing and the survival techniques the Airbus used given the fact that Boeing was already well established in the market and also the sustainability of these techniques in future (Kundnani, 2009).
Overview of the ReportThis report is organized into six sections. Section one deals with the introduction of the Airbus Company. This section also gives a briefing on the three questions that directs this case study.
Section two addresses the initial problems faced by Airbus and how they were solved. Section three explains how the company achieved market leadership in the aerospace industry for commercial aircraft and the future of the company to hold this position. Section four analyses the structure of the aerospace industry up to the summer of the year 2009 and how this industry has had an impact on the competition between Boeing and the Airbus airplane manufacturing companies. Section five gives the references from where the information is obtained.
Finally, section six contains the background information on the company as well as any other relevant information concerning this case study. SECTION II: Question I Initial Challenges Faced By the Airbus CompanyThe airbus company faced enormous challenges upon the inception of the Airbus aircrafts, firstly the company found an almost established monopoly in the market, the Boeing Company, therefore the first challenge the airbus faced was to convince the Boeing customers that Airbus was a credible substitute of Boeing Company (Connolly, 2009).