In recent years, Airbus has emerged as one of the leader in Airplane manufacturing industry. They have begun to introduce several different planes with many company's purchase a large numbers of their planes. They continue to chase Boeing as the leader in the manufacturing industry,and they realize they need to continue to grow and expand in order to compete effectively. Airbus has recently introduced the new A380, which is the largest commercial plane in their fleet. With a higher volume of passengers and distance the plane can travel, they have expanded the opportunity for for longer and higher volume flights. The A380 has attracted many airline customers to purchases several A380 aircraft. (Airbus)
As we have discussed, Boeing has since introduced the new 787 Dreamliner,which is made out of composite materials that reduce fuel consumptions and drag on the airplane. The new Eco-friendly jumbo jet will be in direct competition with the A380 and possibly propel Boeing into continued success over Airbus for an extended period of time.
In order to accurately make an educated finding as to who will be the leader in the airline manufacturing industry in five years, we need to conduct a thorough examination of Airbus by looking at their strengths, weaknesses, opportunities, and threats.
Airbus has seen much strength in their company through their internal support system throughout the company. By having a strong internal supplies system, it makes for easier communication amongst the offices within Airbus. It also supplies the company with a strong sense of efficiency throughout all the different business processes within the company. Another strength for Airbus is their diversified customer base with planes being used by many different Airlines around the world. (Market line)
A major weakness however was found on the problems associated with the new A380 engines. The problems were manufacturing defects associated with the construction of the engines, which set back the company from where they would have liked to be. (Market line)
Airbus does have several significant opportunities for the future. They have a large, increasing demand for their Aircraft from companies around the world. With prices being reasonable and a strong brand loyalty, companies continue to buy Aircraft from the Airbus Company. Another opportunity is that there has been a surge in defense spending in China and India that will lead to growth in their different market segment. The growth in these areas will allow Airbus to search for new opportunities in the commercial airline segment. With more sales and a higher cash flow, it will lead to growth through acquisition possibilities. As Airbus grows, the potential for them to acquire smaller companies will grow. (Market line)
The major threats to Airbus lie in the competition with other companies who have a larger value of finances and other business segments. Boeing is the major competitor because they are in every market area and have been around since the early 1900s. The pressure of competitions has subsequently required Airbus to drop their prices. By doing this, it has impacted how well they are able to grow and the possible profits they could make compared to the other major competitors.(Market line)
The weak economic outlook for the US and European markets will also impact the outlook for Airbus. Even though the economy has seen improvement, there are still areas of concern as we are not fully out of the recession currently. (Market line)