Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas 1991 (A)

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Case

Reference no. 9-391-106

Subject category: Economics, Politics and Business Environment

Authors: David B Yoffie (Harvard Business School); Eric J Vayle (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 1991

Version: 27 October 1993

Length: 20 pages

Data source: Published sources

Topics: Business & government relations; Business ethics; Competitive strategy; EC single market; International business; Problem solving; Risk; Sales; Technology adoption lifecycle; Trade

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Abstract

Describes the competitive situation that has arisen in the commercial aircraft manufacturing industry since Airbus entered in 1970. Having overtaken McDonnell Douglas for second place, Airbus announces plans to challenge market leader Boeing's last pocket of dominance. Industry and government officials have long complained about assistance that Airbus receives from its governments, and this new challenge threatens to spark a new battle between the governments. Pushes students to examine issues facing industry players - high risk, long-term investments; technological change; intense selling competition - and issues facing their national governments - fair vs unfair trade; important national industries - in a highly visible time frame for players and governments.

Locations:

Europe; United States

Industries:

Aircraft; Manufacturing; Transportation

Size:

USD20 billion revenues