Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
Abstract
Since its inception, Boeing enjoyed a virtual monopoly in the commercial aircraft industry. But the advent of European aerospace firm, ''Airbus Industrie'', in 1970, posed a major threat to Boeing''s dominance in the commercial aircraft market. Over the years, Airbus gradually made its ground with its innovative technologies and government funding. And, for the first time in 2003, Airbus became the world''s largest manufacturer of commercial aircrafts by surpassing Boeing in the market share. Competition among the two reached a new dimension when Airbus announced the A380 Superjumbo. Airbus touted the A380 as the future of commercial aviation, as it saw a huge demand for the larger aircrafts. In contrast, Boeing asserted that smaller and faster aircrafts would rule the market. In this line, Boeing announced its plans to build the 7E7 Dreamliner. This case study offers a discussion on the factors that have driven Boeing and Airbus to adopt different philosophies. The case study also outlines the shift in the manufacturing practices at both the companies, which was a result of the differing ideologies.
About
Abstract
Since its inception, Boeing enjoyed a virtual monopoly in the commercial aircraft industry. But the advent of European aerospace firm, ''Airbus Industrie'', in 1970, posed a major threat to Boeing''s dominance in the commercial aircraft market. Over the years, Airbus gradually made its ground with its innovative technologies and government funding. And, for the first time in 2003, Airbus became the world''s largest manufacturer of commercial aircrafts by surpassing Boeing in the market share. Competition among the two reached a new dimension when Airbus announced the A380 Superjumbo. Airbus touted the A380 as the future of commercial aviation, as it saw a huge demand for the larger aircrafts. In contrast, Boeing asserted that smaller and faster aircrafts would rule the market. In this line, Boeing announced its plans to build the 7E7 Dreamliner. This case study offers a discussion on the factors that have driven Boeing and Airbus to adopt different philosophies. The case study also outlines the shift in the manufacturing practices at both the companies, which was a result of the differing ideologies.