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8/2/2019 Revolution in Jumbo Jet Market
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Revolution in jumbo jet market
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Airbus - Boeing
Airbus-subsidiaryof EADS,Europeanaerospace companyfounded in 1970
Revenue-US $57billion.
Manufacturer ofthe world's largest
airliner, the A380.
Boeing-founded in1916 by William E.Boeing in Seattle,Washington.
Revenue-US$64.306 billion
largest globalaircraft
manufacturers byrevenue, ordersand deliveries.
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A380 v/s Boeing747
A380-maiden flight on 27April 2005
nickname Superjumbo
555 passengers
Cost-US$375.3 million
Range-15,200 km Speed-900 km/h
As of Oct 2011 236 firmorders for the A380, ofwhich 58 have beendelivered.
Boeing747-First flowncommercially in 1970
Nickname-Jumbo Jet, orQueen of the Skies
416 passengers
Cost-US$228260 million
Range-13,450 km Speed-920 km/h
1,418 units sold
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SWOT analysis-Airbus
Strengths:support fromEuropean Union
Wide range ofmodels-twin enginemid sized to fourengine gigantic sizes
Weakness:
High cost & longertime for design &production
Opportunities:rise in demand forair travel.Demand for more
transcontinentalflights with morecapacity.
Threats:
BoeingAirline Disasters,Terrorism, increasein aviation fuel prices
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SWOT analysis-Boeing
o Strengths:strong brand name incommercial airlines.production of new
low cost aircrafts.Americas largestexporter.
o weakness:
high R&D costs.delays due tosuppliers &manufacturers
Opportunities:increase in air travelinnovative conceptsfor attracting
customersAsian marketgrowthfor defence &commercial aircrafts
Threats:
Airbusincrease in jet fuel
prices,slow down inaviation market
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PEST analysis -Airbus
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Political factors:
Liberalization of travels between EU and US .
The tension between Middle East and US,
gives a slightly higher preference to a non
US manufacturer and Airbus is an automatic
choice.
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Economic factors:
Oil price Increase can decrease demand.
terrorist attacks, wars could affect the
economy.
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Social factors:
Change in the life style of people increased
air travel.
Luxurious mode of air travel by people.
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PEST analysis-Boeing
Political factors:
The US Govt &(FAA) influence the air
transport.
Regulations by the US & European govts
proves to be a major force for orders for
new aircraft and engines.
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Economic factors:
Aircraft manufacturers rely heavily onsubsidies.
Fuel costs,
Risk of terrorism
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Social factors:
Anti-US feelingsdue to recent Iraq
& middle east warsaffected onBoeing's sales .
Technologicalfactors:
The supersonic
transport.using computertechnology to builda prototype-cost
effective.Use of lightermaterials.
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Boeing as the leader
They have market share of 51.2% They introduced B747 jumbo jet in 1970 Monopolist in the market of jumbo jet
aircraft till 2000. B747 had earned the company $20 billion in
profit for last 30 years. Use mobile defense strategy-the products
includes:Commercial airlinersMilitary aircraft
MunitionsSpace systemsComputer services
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Airbus as challenger
Market share of 44.3%. Only competitor to Boeing in
commercial aircraft segment.
Use frontal attack to challenge B747. Came up with A380 to challenge B747
in 400+ seat jumbo jet aircraftsegment
Added extra features to A380-spa,bar, casino.
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Marketing Strategy: BOEING
Defensive
Direct point to point flights
Concentrates on efficiency
Introduced sonic cruiser as a highspeed jet but later changed it to787dreamliner.
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Marketing Strategy: AIRBUS
Reduced operating cost per seat.
Current Customer Database management
Production efficiency
Relationship marketing myopia Relationship seekers
Relationship exploiters
Loyal buyers Arms length transactional buyers
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Whats in store for the future?
Increase in the Asian aviationleading toincrease in no. of aircrafts.
Boeing might come back up as a strong
competitor to Airbus with bettertechnology.
A new competitor like Bombardier or
Embraer may emerge. Boeing may provide stiff competition to
Airbus if it comes with a similar aircraft as
Airbus A380 in that particular segment.
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Thank you
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